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Jan 9, 2018

Morning Euro Markets Bulletin

 
ADVFN  Morning Euro Markets Bulletin
Daily world financial news Tuesday, 09 January 2018 10:39:37
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London Market Report
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London open: Stocks rise as Morrisons rallies on Christmas update

London stocks rose in early trade on Tuesday, helped along by a solid Christmas trading update from Morrisons.

At 0830 GMT, the FTSE 100 was up 0.4% to 7,724.36, after hitting a fresh intraday high of 7,733.39 on Monday, while the pound was flat against the euro at 1.1338 and down 0.2% versus the dollar at 1.3538.

Earlier, figures from the British Retail Consortium showed retail sales remained lacklustre in the industry's vital festive period, with non-food sales growth the lowest in five years.

Sales increased 0.6% in December, the same as the month before, as price inflation drove a 2.6% rise in food sales that was all but wiped out by a 2.2% fall in non-food retail sales.

High street sales in the three months to December of non-food items declined 4.4% on a like-for-like basis, which is the lowest rate since 2012, when the BRC's records began.

Helen Dickinson, the BRC's chief executive, said: "With inflation outpacing income growth, shoppers continued to see more of their spending power absorbed by essential items, including food, leaving less left over for buying Christmas gifts.

"That made this year's festive period all the more nail-biting for non-food retailers, many of whom offered deep discounts in the last weeks before Christmas in the hope of something to celebrate at the end of a year, which has seen, on average, zero growth in non-food sales."

In corporate news, supermarket group Morrisons rallied as it reported on a much stronger than expected Christmas period, boosted by the roll-out of its new wholesale operations, while Unite was higher after a well-received trading update.

There was also data published on the supermarket sector from Kantar Worldpanel, which showed £1bn more was spent in the three months to Christmas than the year before. Sainsburys and Marks & Spencer also gained ground, but Tesco was in the red.

Spreadex analyst Connor Campbell said the statement from Morrisons was good news for the retail sector after the "truly terrible post-Christmas updates" from Debenhams and Mothercare.

Cigarette maker British American Tobacco was in the black as it said 2018 earnings would get a 6% boost from the recent US tax cuts "supporting our commitment to high single digit earnings growth and increased investment in the roll out of next generation products".

Dechra Pharmaceuticals rose after it reported a 10.5% jump in half-year revenue and said changes to US taxes are expected to have a positive impact on the group, while Safestore edged up as its full-year revenues and earnings beat expectations.

On the downside, housebuilder Persimmon slipped after saying it expected full year pre-tax profits would be "modestly ahead" of market consensus, while building products distributor SIG fell despite saying its full-year results should be in line with expectations after a forex boost.

Shares in Just Group slumped after private equity firm Permira sold 50m shares in the retirement specialist at 157p each in a placing that represents a stake of around 5.3%.


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Market Movers

FTSE 100 (UKX) 7,724.36 0.36%
FTSE 250 (MCX) 20,888.08 0.15%
techMARK (TASX) 3,537.86 0.33%

FTSE 100 - Risers

Morrison (Wm) Supermarkets (MRW) 235.20p 3.66%
Sainsbury (J) (SBRY) 248.00p 2.90%
Carnival (CCL) 4,937.00p 2.49%
Marks & Spencer Group (MKS) 317.50p 2.16%
Croda International (CRDA) 4,563.00p 1.47%
Taylor Wimpey (TW.) 211.46p 1.37%
Anglo American (AAL) 1,646.20p 1.18%
Rio Tinto (RIO) 4,080.50p 1.07%
easyJet (EZJ) 1,540.00p 1.02%
Schroders (SDR) 3,611.00p 0.98%

FTSE 100 - Fallers

Shire Plc (SHP) 3,637.00p -0.75%
RSA Insurance Group (RSA) 616.00p -0.74%
Severn Trent (SVT) 2,118.00p -0.61%
Standard Chartered (STAN) 790.60p -0.60%
Legal & General Group (LGEN) 269.70p -0.48%
Prudential (PRU) 1,897.00p -0.37%
Hammerson (HMSO) 533.20p -0.30%
Mondi (MNDI) 1,911.00p -0.26%
Rolls-Royce Holdings (RR.) 866.40p -0.25%
Land Securities Group (LAND) 996.40p -0.23%

FTSE 250 - Risers

Dechra Pharmaceuticals (DPH) 2,086.00p 3.99%
Pets at Home Group (PETS) 174.30p 3.94%
Evraz (EVR) 379.20p 2.18%
Rotork (ROR) 285.60p 2.15%
Brown (N.) Group (BWNG) 288.84p 2.06%
Sophos Group (SOPH) 645.20p 1.69%
Aveva Group (AVV) 2,822.00p 1.36%
Hunting (HTG) 624.00p 1.30%
UDG Healthcare Public Limited Company (UDG) 826.50p 1.16%
Drax Group (DRX) 289.20p 1.12%

FTSE 250 - Fallers

Just Group (JUST) 155.70p -7.16%
SIG (SHI) 169.80p -1.96%
Metro Bank (MTRO) 3,496.00p -1.91%
Fisher (James) & Sons (FSJ) 1,606.00p -1.71%
Spectris (SXS) 2,525.00p -1.52%
Cineworld Group (CINE) 567.00p -1.48%
SSP Group (SSPG) 675.50p -1.03%
Capita (CPI) 404.92p -0.83%
Rank Group (RNK) 243.50p -0.81%


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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) 252,950,491,184 14,682.44 -0.23%
2 Ethereum (ETH) 119,693,345,075 1,192.41 +7.81%
3 Ripple (XRP) 92,833,711,928 2.31 -9.01%
4 Bitcoin Cash / BCC (BCH) 41,633,850,175 2,402.94 -1.34%
5 Cardano (ADA) 22,564,848,031 0.851582 -3.69%

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US Market Report

US close: S&P 500, Nasdaq notch up fresh record highs

Wall Street finished on a mixed note come Monday, following a solid performance last week as traders debated on the outlook for equities and, somewhat strikingly, despite a top Federal Reserve official coming out in favour of modifying the central bank's policy framework and dovish comments from some of his peers.

At the closing bell, the Dow Jones Industrials Average was 0.05% lower at 25,283.00, while the S&P 500 was 0.17% higher to 2,747.71.

Meanwhile, the Nasdaq Composite had managed to add 0.29% to see the day out from 7,157.39.

In a nod to worries in some corners of the market that investors (especially so those from the retail segment) may have gotten ahead of themselves, JP Morgan's Mislav Matejka told clients: "HF beta is elevated, MSCI World RSI appears stretched and the Bull-Bear index has just printed the highest level since 2010.

"These suggest that there could be some 'travel and arrive', that stocks could see some consolidation ahead."

Also in reference to the outlook for global equities Matejka went on to add that: "but we believe fundamentally one should stay constructive and we would keep 'buying any dips'."

From a sector standpoint, the best performance was being seen in the following industry groups: Drug retailers (2.32%), Medical supplies (2.09%) and Marine Transportation (2.03%). Going the other way, Coal did worst, erasing 2.03%, followed by Distillers (-1.79%) and Airlines (-1.26%).

Acting as a backdrop, the headlines over the weekend were all about the political and media storm brewing over Capitol Hill in the wake of the release of author Paul Wolff's book on the US president: "Fire and Fury: Inside the Trump White House".

In a session bereft of fresh economic data, the market spotlight was on the potential for market-moving remarks from three top Fed officials, which in the end appeared to pass unnoticed by markets.

Nonetheless, speaking towards the close of trading, Boston Fed chief Eric Rosengren argued in favour of targeting an inflation band of between 1.5% and 3.0%, versus the current symmetric target centred around 2.0%.

Meanwhile, in the course of a speech centred on the US economic outlook, the president of the Federal Reserve bank of Atlanta, Raphael Bostic said that the US central bank might not need to hike interest rates three times in 2018 because of weak inflation - a more dovish bias from the new rate-setter than heretofor.

His opposite number at the San Francisco Fed on the other hand, John Williams, stuck to his stance in favour of three rate hikes over the course of 2018, depending on the economic data.

Like Rosengren, Williams also touted the benefits of so-called 'price-level targeting', explaining that it "basically promises extra stimulus".

Longer-term US Treasury notes were little moved in reaction, with the yield on the benchmark 10-year issue unchanged at 2.48% by the end of trading in New York.

In corporate news, Nvidia was on the up after the chip maker announced a partnership with Uber to provide the company with self-driving hardware, amid reports of a similar deal with Volkswagen.

Elsewhere, biotech company Celgene was also in the black after announcing a deal to buy biotechnology group Impact Biomedicines for up to $7bn.

Lululemon was on the other hand were trading lower even after lifting its fourth-quarter profit and revenue forecasts.

Dow Jones - Risers

Caterpillar Inc. (CAT) $166.03 2.51%
Wal-Mart Stores Inc. (WMT) $101.57 1.48%
Cisco Systems Inc. (CSCO) $39.94 1.04%
United Technologies Corp. (UTX) $132.82 0.95%
Nike Inc. (NKE) $64.55 0.89%
International Business Machines Corp. (IBM) $163.41 0.57%
Procter & Gamble Co. (PG) $91.72 0.53%
Chevron Corp. (CVX) $128.51 0.49%
Exxon Mobil Corp. (XOM) $87.08 0.45%
Visa Inc. (V) $119.34 0.40%

Dow Jones - Fallers

Unitedhealth Group Inc. (UNH) $224.70 -1.74%
Goldman Sachs Group Inc. (GS) $251.81 -1.45%
Walt Disney Co. (DIS) $110.00 -1.43%
General Electric Co. (GE) $18.27 -1.40%
Pfizer Inc. (PFE) $36.44 -1.14%
American Express Co. (AXP) $100.15 -0.92%
Merck & Co. Inc. (MRK) $56.66 -0.58%
Travelers Company Inc. (TRV) $131.42 -0.54%
Apple Inc. (AAPL) $174.35 -0.37%
Dowdupont Inc. (DWDP) $75.16 -0.34%

S&P 500 - Risers

Seagate Technology Plc (STX) $46.00 7.13%
Kohls Corp. (KSS) $56.90 4.67%
Western Union Co. (WU) $21.46 4.32%
Diamond Offshore Drilling Inc. (DO) $19.84 4.15%
Intuitive Surgical Inc. (ISRG) $391.86 3.39%
Cardinal Health Inc. (CAH) $65.23 3.16%
Nvidia Corp. (NVDA) $222.00 3.06%
GameStop Corp. (GME) $19.23 2.94%
FLIR Systems Inc. (FLIR) $49.67 2.94%
Helmerich & Payne Inc. (HP) $68.58 2.80%

S&P 500 - Fallers

Biogen Inc (BIIB) $329.65 -3.75%
L Brands Inc (LB) $48.64 -3.42%
Regeneron Pharmaceuticals Inc. (REGN) $372.52 -3.27%
Tenet Healthcare Corp. (THC) $14.95 -3.17%
Mattel Inc. (MAT) $15.81 -2.77%
Alexion Pharmaceuticals Inc. (ALXN) $119.70 -2.52%
Delta Airlines Inc. (DAL) $54.65 -2.30%
Navient Corporation (NAVI) $13.69 -2.28%
Humana Inc. (HUM) $258.44 -2.23%
Mallinckrodt Plc Ordinary Shares (MNK) $22.39 -2.23%

Nasdaq 100 - Risers

Seagate Technology Plc (STX) $46.00 7.13%
Tesla Inc (TSLA) $336.41 6.26%
Intuitive Surgical Inc. (ISRG) $391.86 3.39%
Align Technology Inc. (ALGN) $248.90 3.25%
Nvidia Corp. (NVDA) $222.00 3.06%
Mercadolibre Inc. (MELI) $340.79 3.00%
Applied Materials Inc. (AMAT) $55.92 2.42%
Baidu Inc. (BIDU) $250.82 2.32%
Cadence Design Systems Inc. (CDNS) $44.92 2.11%
Liberty Interactive Corporation - Series A Liberty Ventures (LVNTA) $58.20 2.05%

Nasdaq 100 - Fallers

Shire Plc Ads (SHPG) $149.10 -4.95%
Biogen Inc (BIIB) $329.65 -3.75%
Regeneron Pharmaceuticals Inc. (REGN) $372.52 -3.27%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $231.14 -2.87%
Liberty Global plc Series A (LBTYA) $35.25 -2.60%
Alexion Pharmaceuticals Inc. (ALXN) $119.70 -2.52%
Liberty Global plc Series C (LBTYK) $33.57 -2.36%
Dollar Tree Inc (DLTR) $109.10 -1.84%
Biomarin Pharmaceutical Inc. (BMRN) $88.64 -1.81%


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Newspaper Round Up

Tuesday newspaper round-up: Retail woe, credit card misselling, AA, Lidl

The number of retailers going into administration has risen for the first time in five years as falling consumer confidence and rising costs take their toll on businesses. Figures compiled by Deloitte show that 118 retailers became insolvent last year, a 28 per cent increase on 2016, when 92 firms filed for administration. - The Times

High street spending in the run-up to Christmas increased at the slowest rate since 2012 after spiralling prices forced shoppers to spend more of their earnings on food and essential items. Figures from the British Retail Consortium (BRC) sent a worrying signal to non-food retailers, in a week of crucial trading updates for the sector, as they showed that consumers reined in their spending on furniture, clothes and footwear in December. - Guardian

Tens of thousands of subprime credit card customers could be denied compensation for a mis-sold debt waiver product because of a legal spat between Barclays and the US company that bought the card business a decade ago. CCUK, a British subsidiary of a company based in Atlanta, has appealed to the High Court to try to force Barclays to make compensation payments to some 80,000 affected individuals, who took out cards with a payment break protection (PBP) add-on. - The Times

Drug firms have urged the government to push to keep the UK as a member of the EU's medicines regulatory body, despite concerns this could mean continued jurisdiction over the industry by the European Court of Justice (ECJ). FTSE 100 giant AstraZeneca and Japanese multinational Eisai both told The Daily Telegraph they ideally wanted the European Medicines Agency (EMA) to continue to oversee the movement and safety of drugs on both sides of the Channel.

Theresa May's new year reshuffle was thrown off course when senior members of the cabinet refused to move and Justine Greening quit the government after turning down a job as work and pensions secretary. Earlier, Jeremy Hunt rejected a new position as business secretary and instead persuaded the prime minister to allow him to remain at health in a beefed-up role taking on more responsibility for social care. - Guardian

The former boss of the AA, who was ousted for assaulting a colleague, is challenging his sacking in an employment tribunal. Bob Mackenzie was dismissed as executive chairman last July after he attacked a fellow AA executive in a hotel bar, which was captured on CCTV. He is understood to have lodged a claim alleging his sacking was mishandled and contravened company procedures. - Telegraph

Lidl is to open a 1 million sq ft warehouse in Luton as it continues its attack on the British grocery sector. The German discount retailer group said the new regional distribution centre would be more than double the size of any warehouse it had in the UK and would be on a 58-acre site at junction 11A of the M1. - The Times

Jaguar Land Rover has reported its best-ever year, with global sales rising 7pc to 621,100, despite demand flat-lining in the UK. However, the company used the sales milestone to hit out at the Government's policy towards diesel cars, saying it could harm the development of new, cleaner engines and electric vehicles. - Telegraph

Debenhams has been downgraded by Moody's credit rating agency after the struggling department store chain's profit warning last week sparked fresh concerns about the chances of its turnaround plan. Moody's said that following the dismal trading update it now expects the company's metrics to deteriorate this year beyond its original expectations. As a result it was cutting its rating from Ba3 to B1, four notches below investment grade. - Telegraph

British companies are being subjected to a barrage of cyberattacks, which leapt by nearly a quarter during the final three months of last year. Beaming, a provider of internet services for businesses, reported that on average British firms each suffered 231,028 cyberattacks during 2017, or 633 attempts to breach their firewalls every day. - The Times

Two large Apple shareholders have asked the technology giant to assess the impact its products are having on young people, amid a growing concern over the effect smartphones are having on their mental health. Activist investor Jana Partners LLC and the California State Teachers' Retirement Sytem (Calstrs), which control around $2bn of Apple shares or 0.2 per cent, published an open letter on Saturday urging the Silicon Valley company to respond to the widespread phone addiction phenomenon, which psychologists have suggested may become a public health crisis in years to come. - Telegraph

 

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