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Jan 8, 2018

Morning Euro Markets Bulletin

 
ADVFN  Morning Euro Markets Bulletin
Daily world financial news Monday, 08 January 2018 10:32:04
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London Market Report
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London open: Stocks nudge lower with retailers in focus

London stocks nudged lower in early trade on Monday as a profit warning from Mothercare kept investors on edge ahead of a big week for retailers.

At 0830 GMT, the FTSE 100 was down 0.1% to 7,713.86, while the pound was flat against the euro at 1.1282 and 0.2% weaker versus the greenback at 1.3538.

Lee Wild, head of equity strategy at Interactive Investor, said: "A rush of corporate updates will keep traders glued to their screens this week. Modest valuations and market-leading dividend yields have already attracted buyers to the housebuilding sector, but latest numbers will need to soothe concerns about falling house prices in London and a slowdown elsewhere.

"The jury is still out on the high street retailers after last week's mixed bag from Next and Debenhams. After so many failures, M&S is under pressure to provide evidence that a five-year turnaround plan is working. Sales growth is key here and, if the current high-profile executive team can't achieve success, there seems little hope. At least the share price is currently underpinned by a generous dividend."

Overnight Visa/IHS data shows a significant slowdown in spending in December which meant 2017 saw a fall in spending for the first time in five years. On an annualised basis, retail sales in the key trading month in the UK were said to be down by 1%.

In corporate news, software group Micro Focus tumbled as its first-half results failed to impress.

Spreadex analyst Connor Campbell said: "Micro Focus actually posted some attention-grabbing numbers, namely a 28.7% surge in revenue to $145.7m and an 80.3% jump in revenue to $1.23bn. Yet the fact that revenue dropped 2.9% year-on-year to $664.7m when the effects of its HPE Software merger were stripped out, alongside its group results coming in at the bottom end of expectations, soured investors on the tech firm, who sent the stock to a four-month low."

TP Icap edged down as it acquired US-based energy and commodities broker SCS Commodities based for an undisclosed cash sum and further performance-related amounts over five years.

Babcock gained after saying it will lead a bespoke team of industry partners in a bid for the UK Ministry of Defence's new £1.25bn Type 31e general purpose light frigate programme.

Standard Life got a leg up from an upgrade to 'buy' from Jefferies, while Thomas Cook was boosted by an upgrade to 'overweight' by Morgan Stanley, and BBA Aviation was up after an upgrade to 'buy' at Citi.

Ladbrokes Coral and Paddy Power were hit by downgrades from Morgan Stanley.

Outside of the FTSE 350, in a week that will see updates from the likes of Morrisons, Sainsbury's, Marks & Spencer, Tesco, and Boohoo, retailer Mothercare tumbled after it warned over profits and said sales fell over the Christmas period.


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Market Movers

FTSE 100 (UKX) 7,713.86 -0.13%
FTSE 250 (MCX) 20,952.95 0.10%
techMARK (TASX) 3,569.86 -0.31%

FTSE 100 - Risers

Standard Life Aberdeen (SLA) 432.10p 1.03%
GlaxoSmithKline (GSK) 1,375.00p 1.03%
G4S (GFS) 277.70p 0.91%
Experian (EXPN) 1,662.50p 0.82%
BHP Billiton (BLT) 1,573.60p 0.77%
Worldpay Group (WPG) 438.10p 0.71%
Scottish Mortgage Inv Trust (SMT) 464.87p 0.62%
Glencore (GLEN) 391.00p 0.62%
Rio Tinto (RIO) 3,982.50p 0.58%
Centrica (CNA) 146.85p 0.48%

FTSE 100 - Fallers

Micro Focus International (MCRO) 2,344.00p -9.22%
Paddy Power Betfair (PPB) 8,730.00p -1.58%
Hargreaves Lansdown (HL.) 1,805.00p -1.04%
ITV (ITV) 169.53p -0.80%
Randgold Resources Ltd. (RRS) 7,212.00p -0.77%
Just Eat (JE.) 804.80p -0.76%
International Consolidated Airlines Group SA (CDI) (IAG) 659.40p -0.69%
Reckitt Benckiser Group (RB.) 6,800.50p -0.59%
Persimmon (PSN) 2,762.00p -0.58%
Whitbread (WTB) 3,971.00p -0.58%

FTSE 250 - Risers

Thomas Cook Group (TCG) 130.80p 4.64%
Euromoney Institutional Investor (ERM) 1,290.00p 2.38%
Ascential (ASCL) 400.20p 2.35%
Victrex plc (VCT) 2,736.00p 2.01%
Jardine Lloyd Thompson Group (JLT) 1,432.00p 1.99%
BBA Aviation (BBA) 350.20p 1.74%
Syncona Limited NPV (SYNC) 214.00p 1.66%
Diploma (DPLM) 1,259.00p 1.61%
Sophos Group (SOPH) 623.49p 1.55%
Kaz Minerals (KAZ) 898.20p 1.26%

FTSE 250 - Fallers

TI Fluid Systems (TIFS) 243.60p -4.84%
GCP Infrastructure Investments Ltd (GCP) 124.52p -1.95%
Coats Group (COA) 88.79p -1.35%
Ladbrokes Coral Group (LCL) 185.50p -1.33%
Softcat (SCT) 528.96p -1.31%
Ultra Electronics Holdings (ULE) 1,280.00p -1.08%
Barr (A.G.) (BAG) 663.25p -1.01%
RDI Reit (RDI) 37.10p -0.93%
Jupiter Fund Management (JUP) 625.80p -0.89%


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Hargreaves Lansdown

Top of the stocks

Number of Deals Bought

Place EPIC Equity name %
1 SOPH Sophos Group plc 3.28
2 LGEN Legal & General Group plc 2.11
3 BOO Boohoo.com 1.90
4 OXB Oxford Biomedica plc 1.16
5 GSK GlaxoSmithKline plc 1.10
6 SMT Scottish Mortgage Investment Trust 1.08
7 LLOY Lloyds Banking Group plc 1.05
8 SXX Sirius Minerals plc 0.96
9 XBT Provider AB 0.96
10 GGP Greatland Gold Plc 0.87

Number of Deals Sold

Place EPIC Equity name %
1 LLOY Lloyds Banking Group plc 2.14
2 BOO Boohoo.com 1.63
3 BP. BP Plc 1.14
4 GGP Greatland Gold Plc 1.09
5 GSK GlaxoSmithKline plc 0.87
6 PLUS Plus500 Ltd 0.87
7 SXX Sirius Minerals plc 0.84
8 BT.A BT Group plc 0.84
9 IQE IQE plc 0.82
10 XBT Provider AB 0.81

Cryptocurrencies Report

Top Cryptocurrencies

# Name Market Cap($) Price(%) Change Price Graph(3m)
1 Bitcoin (BTC) 259,991,479,425 15,217.17 -5.98%
2 Ethereum (ETH) 111,792,961,580 1,135.07 +1.71%
3 Ripple (XRP) 98,325,760,493 2.49 -10.02%
4 Bitcoin Cash / BCC (BCH) 40,899,170,494 2,381 -5.81%
5 Cardano (ADA) 24,024,905,081 0.91303 -2.55%

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US Market Report

US close: Records continue as Dow, S&P, Nasdaq continue surge

The records kept coming on Wall Street as equities soared to their fourth straight day of gains, shrugging off a raft of weaker-than-expected economic data.

At the close, the Dow Jones Industrials Average had piled on another 210 points, or, 0.89% to 25,289, the S&P 500 gained 19 points to 2,743 and the Nasdaq Composite 59 points to 7,137.

US non-farm payrolls rose by just 148,000 in December, falling short of the 175,000 increase expected by the consensus, amid weak hiring in retail.

Services sector activity also softened last month, with the ISM's Purchasing Managers' Index printing at 55.9, versus a reading of 57.4 for the month before (consensus: 57.8).

Rounding out a poor day in terms of the flow of data, America's shortfall in foreign trade widened from -$48.9bn for October to -$50.5bn in November (consensus: -$49.5bn).

Oanda analyst Craig Erlam said any concerns about a post-tax reform pull-back in equity markets have quickly been quashed, with indices in the US posting decent gains in the first week of the year as investors anticipate another good earnings season.

"We've seen very good earnings growth from companies in the US and Europe in recent quarters and I think the optimism that we're seeing at the start of the year is potentially being driven by expectations of a similarly positive fourth quarter," he said.

In the background, the president of the Federal Reserve bank of St.Louis, James Bullard sounded a cautious note, telling an audience there was no need for the central bank to tighten policy more quickly.

Bullard also held out the possibility - contrary to the views of many observers - that the new tax bill might unleash "a lot" of investment in the US which might result in an "outsized effect" on the economy.

On the corporate front, tech giant Apple was managing to claw back from early losses after it confirmed that all devices running its mobile and PC operating systems are affected by two major flaws in computer chips.

Dow Jones - Risers

Boeing Co. (BA) $308.84 4.10%
Visa Inc. (V) $118.86 2.39%
Unitedhealth Group Inc. (UNH) $228.73 1.91%
Caterpillar Inc. (CAT) $161.93 1.58%
Cisco Systems Inc. (CSCO) $39.53 1.38%
Dowdupont Inc. (DWDP) $75.42 1.30%
Microsoft Corp. (MSFT) $88.19 1.24%
Apple Inc. (AAPL) $175.00 1.14%
Home Depot Inc. (HD) $192.25 1.04%
United Technologies Corp. (UTX) $131.57 0.86%

Dow Jones - Fallers

JP Morgan Chase & Co. (JPM) $108.34 -0.64%
Walt Disney Co. (DIS) $111.56 -0.54%
Goldman Sachs Group Inc. (GS) $255.52 -0.51%
Verizon Communications Inc. (VZ) $52.48 -0.23%
Travelers Company Inc. (TRV) $132.17 -0.18%
Chevron Corp. (CVX) $127.90 -0.16%
Merck & Co. Inc. (MRK) $56.99 -0.11%
Exxon Mobil Corp. (XOM) $86.75 -0.08%
Coca-Cola Co. (KO) $46.07 -0.02%
General Electric Co. (GE) $18.53 0.05%

S&P 500 - Risers

Spectra Energy Corp. (SE) $13.89 6.85%
Western Union Co. (WU) $20.60 5.91%
Xilinx Inc. (XLNX) $74.15 5.19%
Electronic Arts Inc. (EA) $112.39 4.85%
CVS Health Corp (CVS) $78.45 4.42%
Boeing Co. (BA) $308.84 4.10%
Carmax Inc. (KMX) $71.02 4.09%
Hess Corp. (HES) $52.16 3.10%
Centene Corp. (CNC) $105.42 2.92%
eBay Inc. (EBAY) $39.69 2.90%

S&P 500 - Fallers

Southwestern Energy Co. (SWN) $5.59 -4.61%
Range Resources Corp. (RRC) $16.76 -3.68%
Johnson Controls International plc (JCI) $38.42 -3.59%
Wyndham Worldwide Corp. (WYN) $112.44 -2.84%
SCANA Corp. (SCG) $45.02 -2.83%
Constellation Brands Inc. Class A (STZ) $219.88 -2.62%
Micron Technology Inc. (MU) $45.80 -2.30%
Diamond Offshore Drilling Inc. (DO) $19.05 -2.21%
Mallinckrodt Plc Ordinary Shares (MNK) $22.90 -2.14%
Illumina Inc. (ILMN) $228.17 -2.07%

Nasdaq 100 - Risers

Xilinx Inc. (XLNX) $74.15 5.19%
Electronic Arts Inc. (EA) $112.39 4.85%
JD.com, Inc. (JD) $45.64 4.51%
Align Technology Inc. (ALGN) $241.07 3.33%
eBay Inc. (EBAY) $39.69 2.90%
Activision Blizzard Inc. (ATVI) $66.37 2.64%
Paypal Holdings Inc (PYPL) $78.70 2.57%
T-Mobile Us, Inc. (TMUS) $64.60 2.54%
Take-Two Interactive Software Inc. (TTWO) $116.91 2.53%
Ctrip.Com International Ltd. Ads (CTRP) $47.37 2.51%

Nasdaq 100 - Fallers

Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $237.96 -2.83%
Micron Technology Inc. (MU) $45.80 -2.30%
Check Point Software Technologies Ltd. (CHKP) $103.42 -2.08%
Maxim Integrated Products Inc. (MXIM) $53.26 -2.08%
Illumina Inc. (ILMN) $228.17 -2.07%
Celgene Corp. (CELG) $104.99 -1.58%
Autodesk Inc. (ADSK) $110.84 -1.10%
Marriott International - Class A (MAR) $134.40 -0.96%
Costco Wholesale Corp. (COST) $187.75 -0.71%


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Newspaper Round Up

Monday newspaper round-up: Retailers, commuters, BT

At least 20 retailers will reveal how they performed over the festive period this week, with Tesco expected to be one of the Christmas winners but Marks & Spencer continuing to struggle. Others due to update investors include Sainsbury’s, Morrisons, John Lewis, House of Fraser and fast-growing discounter B&M. With little sales growth to be found, it is not expected to be a vintage year for any company as consumer confidence and spending power remains weak. – Guardian

Commuters are facing a week of disruption as workers in five rail companies prepare for strike action over the role of train guards. Members of the Rail, Maritime and Transport union (RMT) will walk out on Monday, Wednesday and Friday in the first full week back at work following the festive break after last-ditch talks collapsed. ?" Guardian

Confidence among Britain's businesses appears brittle as fears about trade and economic growth have escalated in a trio of surveys. Brexit has been identified as the biggest concern among those in control of company finances and is likely to lead to more subdued spending by businesses, according to a Deloitte survey. ?" Telegraph

Public houses look to have cashed in on the nation's Christmas spirit thanks to insatiable demand for premium drinks and longer opening hours to help elongate the festivities. Privately owned pub groups have reported buoyant Christmas trading and analysts are expecting upbeat data from some of their larger publicly traded rivals, particularly those with a skew towards drink sales. ?" Telegraph

Ministers have been asked to come up with plans to secure the future of the Vauxhall car plant at Ellesmere Port and to promote it as a factory in the vanguard of the electric vehicle revolution. The future of the Cheshire factory, home of the Vauxhall Astra, has been in doubt since it, along with the rest of the Opel Vauxhall assets in Europe owned by General Motors, was sold to Groupe PSA, the Peugeot and Citroën carmaker. Ellesmere Port's prospects worsened in the autumn when PSA cut a shift and laid off 400 workers, about a quarter of the labour force. ?" The Times

The £49 billion BT pension scheme is set to pull its administration back in-house after terminating a contract with Accenture three years into an eight-year deal. The pension scheme, which has 300,000 members, is one of the largest in the private sector. The decision comes amid intense discussions over the future of the scheme, which has a £13.9 billion deficit. ?" The Times

 

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