Morning Euro Markets Bulletin

ADVFN  Morning Euro Markets Bulletin Daily world financial news Friday, 09 February 2018 11:26:40 Monitor Quote Charts News CFD's Compare Brokers Free BB   Looking for early access to investment opportunities? Make your own informed investment decisions. Get the right tools and information at Master Investor Show 2018. Register for free today London Market Report FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts London open: Stocks drop after more heavy falls in US and Asia; data eyed Stocks in London fell in early trade on Friday following another selloff on Wall Street and in Asia, as investors eyed a slew of key UK data releases. At 0835 GMT, the FTSE 100 was down 0.6% at 7,127.86, while the pound was up 0.3% against the dollar at 1.3957 and 01% firmer versus the euro at 1.1372, having surged in the previous session on the back of unexpectedly hawkish comments from the Bank of England, which signalled the need for interest rates to rise sooner and more than previously anticipated. On Thursday, stocks in the US tumbled as worries about rising inflation and higher interest rates continued to plague investors. The Dow ended down 1,033 points, while the S&P 500 fell 101 points and the Nasdaq sank 275 points. On the data front, UK industrial and manufacturing production figures for December are out at 0930 GMT, along with trade balance data. Accendo Markets analyst Mike van Dulken said: "In focus today will be analysis of yet another volatile overnight session for US and Asian equities. Risk aversion returns to hamper what was a half-hearted recovery, with bullish conviction distinctly lacking while investors digest the reappearance of volatility and prospect of higher inflation." Van Dulken said the industrial and manufacturing production, both expected to have slowed in December, will be of interest given Thursday's more hawkish BoE and the leaked Brexit impact assessment papers. "The industrial metric is expected to have slowed most significantly, with month-on-month growth of -0.9% the slowest since Oct 2016 whilst 0.3% year-on-year is down sharply from 2.5% in Nov and the most pedestrian since 0.7% in May. As for manufacturing, 1.2% annual growth would mark the slowest pace since May’s 1.4%, and a far cry from October’s 4.7% best since Dec 2016." Market participants will also be mulling news that the US government has officially shut down for the second time this year, as Congress failed to meet the midnight deadline to vote on a new budget after Republican Senator Rand Paul voiced some last-minute objections. The Senate passed a two-year budget agreement early on Friday morning that would boost spending by $300n and suspend the debt ceiling for a year but it still needs to be approved by the House of Representatives. In corporate news, British Land nudged lower after announcing the acquisition of the Woolwich Estate, covering 4.9 acres in south east London, for a headline price £103m - representing a net initial yield of 4.1%. Drax was in the red after the power company secured agreements worth a combined £10m to provide capacity from two existing coal units. On the upside, plastics manufacturer Victrex rose after reporting a very strong start to the year, with industrial sales led by consumer electronics to offset a slightly weaker performance from medical customers. Shaftesbury ticked up as the real estate investment trust said it has seen continuing high footfall and robust trading in the period from 1 October 2017 to 8 February 2018. Outside of the FTSE 350, deal news helped to inject a little life into what was otherwise a fairly dull morning, as Trinity Mirrorrallied after agreeing to buy the publishing assets of Northern & Shell, which include the Daily Express, the Daily Star and OK magazine. In broker note action, Tate & Lyle was in the black after an upgraded to 'buy' at Societe Generale, while Metro Bank rose after an upgrade to 'hold' at Investec. Big Yellow got a boost as Bank of America Merrill Lynch upped it to 'buy' 'neutral' and Relx was up after Deutsche Bankupgraded it to 'buy' from 'hold'. Market Movers FTSE 100 (UKX) 7,127.86 -0.60% FTSE 250 (MCX) 19,221.30 -0.55% techMARK (TASX) 3,234.37 -0.53% FTSE 100 - Risers Relx plc (REL) 1,485.00p 0.75% Taylor Wimpey (TW.) 183.30p 0.74% Reckitt Benckiser Group (RB.) 6,438.00p 0.59% Smith & Nephew (SN.) 1,233.50p 0.45% BAE Systems (BA.) 569.60p 0.28% Diageo (DGE) 2,451.50p 0.25% Rio Tinto (RIO) 3,766.00p 0.24% Tesco (TSCO) 202.70p 0.15% Smiths Group (SMIN) 1,507.50p 0.10% Ferguson (FERG) 5,172.00p 0.08% FTSE 100 - Fallers Scottish Mortgage Inv Trust (SMT) 420.22p -3.04% Johnson Matthey (JMAT) 3,168.00p -2.55% United Utilities Group (UU.) 698.00p -1.88% Mediclinic International (MDC) 560.20p -1.82% Mondi (MNDI) 1,780.00p -1.60% 3i Group (III) 898.40p -1.60% Evraz (EVR) 332.25p -1.35% Prudential (PRU) 1,767.00p -1.34% RSA Insurance Group (RSA) 593.00p -1.33% Legal & General Group (LGEN) 251.35p -1.32% FTSE 250 - Risers Ascential (ASCL) 357.80p 1.94% Millennium & Copthorne Hotels (MLC) 541.00p 1.88% Stobart Group Ltd. (STOB) 255.00p 1.39% Victrex plc (VCT) 2,444.00p 1.33% Petrofac Ltd. (PFC) 420.93p 0.99% Big Yellow Group (BYG) 839.00p 0.84% Babcock International Group (BAB) 649.20p 0.81% Intu Properties (INTU) 209.20p 0.77% Dixons Carphone (DC.) 193.00p 0.73% Royal Mail (RMG) 526.01p 0.65% FTSE 250 - Fallers F&C Global Smaller Companies (FCS) 1,281.20p -2.94% Cairn Energy (CNE) 185.50p -2.88% Fidelity China Special Situations (FCSS) 222.00p -2.84% Hikma Pharmaceuticals (HIK) 866.20p -2.83% Sanne Group (SNN) 603.75p -2.78% Worldwide Healthcare Trust (WWH) 2,310.29p -2.72% Vedanta Resources (VED) 710.00p -2.42% Pershing Square Holdings Ltd NPV (PSH) 933.00p -2.30% Saga (SAGA) 113.10p -2.16% Virgin Money Holdings (UK) (VM.) 272.60p -2.12% Leeds City Centre Apartments Invest in the UK’s number 1 property hotspot Priced from just £124,995  Fully managed, 6.5% NET yields Only 33 Units available, Expected to sell out within weeks Find Out More Cryptocurrencies Report Top Cryptocurrencies # Name Market Cap($) Price(%) Change Price Graph(3m) 1 Plus One Coin (PLUS1) 53,396 0.062568 +0.88% 2 Bitcoin (BTC) 138,021,044,592 8,300.7 +3.36% 3 Ethereum (ETH) 80,018,274,241 833.36 +2.88% 4 Ripple (XRP) 31,077,276,936 0.7835 +5.17% 5 Bitcoin Cash / BCC (BCH) 22,207,174,721 1,329.9 +33.1% Looking for early access to investment opportunities? Make your own informed investment decisions. Get the right tools and information at Master Investor Show 2018. Register for free today Top of the stocks Number of Deals Bought Place EPIC Equity name % 1 CPI Capita plc 4.84 2 SMT Scottish Mortgage Investment Trust 2.07 3 RDSB Royal Dutch Shell Plc B Shares 1.35 4 LLOY Lloyds Banking Group plc 1.33 5 SXX Sirius Minerals plc 1.16 6 Amazon.com Inc. 1.16 7 IQE IQE plc 1.13 8 VOD Vodafone Group plc 1.11 9 BP. BP Plc 0.97 10 GSK GlaxoSmithKline plc 0.92 Number of Deals Sold Place EPIC Equity name % 1 LLOY Lloyds Banking Group plc 1.66 2 CPI Capita plc 1.48 3 IQE IQE plc 1.30 4 RMG Royal Mail PLC 1.22 5 XBT Provider AB 1.07 6 XBT Provider AB 0.97 7 GSK GlaxoSmithKline plc 0.96 8 SMT Scottish Mortgage Investment Trust 0.91 9 SXX Sirius Minerals plc 0.82 10 RDSB Royal Dutch Shell Plc B Shares 0.80 Share Tips for 2018 The Share Centre’s investment research analyst Ian Forrest, comments on five equities, an investment trust as well as an ETF that our expert research team think could flourish in 2018.  Read more. Capital at risk. US Market Report US close: Traders suffer another red session Thursday's batch of Federal Reserve speakers was not especially 'hawkish', but the Bank of England's unexpected take on the outlook for interest rates rekindled some of the market's concerns over inflation and where rates may be headed - even in the medium-term. The Dow Jones Industrial Average finished down 4.15% at 23,860.46, the S&P 500 fell 3.75% to 2,581.00, and the Nasdaq 100lost 4.19% to settle at 6,306.10. Stocks initially started the day with a slight bid in the wake of the latest set of initial jobless claims, but that quickly evaporated. As expected, the UK's Monetary Policy Committee kept all its main policy settings unchanged, but according to analysts rate-setters may have opened the door to a hike in the bank rate for as soon as its meeting in May. “Governor Carney said the BoE needed to hike earlier and more than was priced,” said analysts at Bank of America-Merrill Lynch. “So we now expect a 25bp bank rate hike in May and another in February 2019.” The analysts did caveat that such a scenario was “highly conditional”, however, adding that if Brexit transition talks dragged past March or PMIs remained where they are, the would have to reconsider. Back in the US, the weekly unemployment claims data revealed a 9,000-head decline to 221,000 for the week to 3 February, to stand just above 45-year lows reported in mid-January. Economists had predicted the number of claims to rise to somewhere in the vicinity of 232,000. And in Fedspeak action, Philly Fed president Patrick Harker said he was open to hiking interest rates at the March meeting of the Federal Open Market Committee. However, Harker's forecasts still called for only two hikes in 2018. He reportedly also called into question the outlook for inflation, saying that it might firm - or not. Minneapolis Fed President Neel Kashkari said the US central bank was "a long way away" from raising interest rates due to further inflation caused by higher labour costs. Kashkari also said the January jobs report was actually only ‘mixed’ in terms of wage growth. “If you dig beneath the surface, wages went up a little but hours went down,” he said. “And so it was not actually a resoundingly strong report in terms of the outlook for wages. “We need to see that wages are going to go up consistently across the board.” Market participants were also keeping an eye on politics after Senate leaders announced a two-year budget deal late on Wednesday that still needed to pass the House. The deal, outlined by majority leader Mitch McConnell and minority leader Chuck Schumer, was slammed by conservatives and would increase military and non-defence spending by $300bn and add more than $80bn in disaster relief. According to analysts, news of the deal was the main factor behind the earlier rise in US bond yields. On the corporate front, shares in Tesla lost 8.63% after the electric carmaker posted its biggest ever quarterly loss less than 24 hours after Elon Musk chose to shoot his car into space. Tesla reported a loss of $675.4m, compared to a loss of $121m in the same period a year ago. Twenty-First Century Fox was also in focus, trading 4.51% lower after its quarterly earnings and revenue beat analysts' expectations. Revenue for the second quarter came in at $8.04bn versus expectations of $7.94bn, while adjusted earnings per share were 42 cents versus a forecast of 38 cents. Social media giant Twitter posted its first net quarterly profit in history on Thursday, sending its shares 12.15% higher. The firm said rising sales of video advertising space across the microblog had come alongside seriously slashed expenses, swinging the President's personal soapbox to a net profit of $91.1m for its fourth trading quarter – a 154% improvement on the previous year's $167.1m loss. Shares in cigarette maker Philip Morris picked up 1.55%, despite the company reporting an earnings-per-share figure that fell short of analyst expectations and a net income of $694m for the quarter, down 60% from the year-ago quarter. Dow Jones - Risers Exxon Mobil Corp. (XOM) $76.07 -1.13% Procter & Gamble Co. (PG) $80.22 -1.98% Merck & Co. Inc. (MRK) $54.73 -2.06% Chevron Corp. (CVX) $112.30 -2.59% Walmart Inc. (WMT) $100.02 -2.75% Apple Inc. (AAPL) $155.15 -2.75% Walt Disney Co. (DIS) $101.35 -3.26% Coca-Cola Co. (KO) $43.10 -3.28% Dowdupont Inc. (DWDP) $68.21 -3.39% United Technologies Corp. (UTX) $127.48 -3.40% Dow Jones - Fallers American Express Co. (AXP) $88.34 -5.63% Intel Corp. (INTC) $42.75 -5.42% Caterpillar Inc. (CAT) $145.99 -5.41% Boeing Co. (BA) $329.66 -5.30% Home Depot Inc. (HD) $181.22 -5.26% General Electric Co. (GE) $14.45 -5.25% Microsoft Corp. (MSFT) $85.01 -5.13% Travelers Company Inc. (TRV) $135.01 -5.02% Visa Inc. (V) $113.86 -4.84% Nike Inc. (NKE) $62.49 -4.78% S&P 500 - Risers Viacom Inc. Class B (VIAB) $32.71 7.21% Fiserv Inc. (FISV) $133.05 3.00% Kellogg Co. (K) $65.98 2.76% Cardinal Health Inc. (CAH) $66.63 2.29% Philip Morris International Inc. (PM) $100.39 1.53% Southwestern Energy Co. (SWN) $3.65 1.11% Tyson Foods Inc. (TSN) $73.72 0.74% Omnicom Group Inc. (OMC) $75.92 0.70% Essex Prty Trust Inc. (ESS) $218.16 0.22% Interpublic Group of Companies Inc. (IPG) $21.34 0.19% S&P 500 - Fallers Hanesbrands Inc. (HBI) $19.57 -10.88% Goodyear Tire & Rubber Co. (GT) $30.75 -8.13% Newfield Exploration Co (NFX) $26.39 -7.54% Alexion Pharmaceuticals Inc. (ALXN) $108.47 -7.41% Robert Half International Inc. (RHI) $52.26 -7.04% Allstate Corp (The) (ALL) $90.06 -7.03% Prudential Fincl Inc. (PRU) $103.38 -7.01% Teradata Corp. (TDC) $37.29 -6.98% Frontier Communications Co. (FTR) $7.15 -6.78% Synchrony Financial (SYF) $34.98 -6.72% Nasdaq 100 - Risers Fiserv Inc. (FISV) $133.05 3.00% Mercadolibre Inc. (MELI) $345.31 0.51% O'Reilly Automotive Inc. (ORLY) $252.22 0.06% Check Point Software Technologies Ltd. (CHKP) $98.20 -0.84% Starbucks Corp. (SBUX) $53.77 -1.27% Liberty Global plc Series C (LBTYK) $33.86 -1.63% Liberty Global plc Series A (LBTYA) $35.10 -1.71% Cognizant Technology Solutions Corp. (CTSH) $75.16 -1.78% Fastenal Co. (FAST) $52.15 -2.05% Maxim Integrated Products Inc. (MXIM) $55.60 -2.13% Nasdaq 100 - Fallers Take-Two Interactive Software Inc. (TTWO) $103.51 -11.67% Tesla Inc (TSLA) $315.23 -8.63% Alexion Pharmaceuticals Inc. (ALXN) $108.47 -7.41% NetEase Inc. Ads (NTES) $289.61 -6.28% Xilinx Inc. (XLNX) $62.82 -6.20% Applied Materials Inc. (AMAT) $45.75 -6.04% Align Technology Inc. (ALGN) $220.71 -5.81% Workday, Inc. (WDAY) $110.97 -5.77% Hasbro Inc (HAS) $96.48 -5.62% Gilead Sciences Inc. (GILD) $78.22 -5.49% Atlantic Advisory - Share Tips of the Year 2018 Download Our Latest Report Here Losses can exceed deposits Newspaper Round-up Friday newspaper round-up: Premier League, Talktalk, Carillion challenge, Brexit Facebook, Google and Netflix are not submitting bids for the next round of Premier League TV rights, with most analysts believing Sky and BT will remain the major players. It had been thought the Silicon Valley tech giants could intervene and cause a price hike from the £5.1bn Sky and BT combined paid in 2015 but the Guardian understands they are not yet ready to get involved in live sport rights in the UK. - Guardian Senior officials in the Qatari government are set to challenge the evidence of Carillion directors who at parliamentary hearings this week blamed the Gulf state for the construction company’s demise. Their intervention comes as the official receiver laid off another 101 Carillion workers, taking total job losses since the government put the business into compulsory liquidation three weeks ago to 930. - The Times   Newspaper publisher Trinity Mirror has agreed a near-£200m deal to buy a string of Northern & Shell titles including the Daily Express and Daily Star. The deal will see the publisher of the Daily Mirror snap up national newspaper titles the Daily Express, Sunday Express, Daily Star and Daily Star Sunday and three celebrity magazines OK!, New! and Star. - Telegraph Talktalk defied calls from at least one heavyweight shareholder on Wednesday evening not to go ahead with yesterday’s capital-raising as a row erupted over whether existing investors were being unfairly treated. Critics of the deal said Talktalk and its advisers Barclays and Deutsche Bank were flouting one of the sacred tenets of City behaviour by failing to give existing shareholders first option of buying new shares on offer, a principle known as pre-emption rights. - The Times British drivers may need new licences and registration certificates to travel in Europe after Brexit under contingency plans being drawn up by the government that experts warn would create “extremely labour-intensive” extra red tape. In the first of a series of steps to deal with the possibility of failing to reach a deal with the EU, the UK is signing up to a United Nations convention on road traffic, which theoretically also affects zebra crossings and parking. - Guardian Japan has issued a stark warning to the British government over the risks Brexit poses to the county’s businesses operating in the UK. Speaking after a Downing Street summit with 19 leaders from Japan’s biggest businesses with operations in the UK, the country’s ambassador raised the prospect of them pulling out of Britain. - Telegraph The European parliament has voted to launch an inquiry into financial crime, tax evasion and tax avoidance, saying the Paradise Papers had revealed the “unfinished work” needed to secure fair taxation. A special committee of 45 MEPs, provisionally entitled 'Taxe 3' in its terms of reference, will spend a year investigating issues including those raised in the leak of data from the offshore law firm Appleby. - Guardian Mark Carney has urged the government to publish the assumptions behind its leaked Brexit impact assessments as he mounted a robust defence of the Bank of England’s forecasts. The governor said it was in the government’s interests to be as transparent about its assessments as possible “so that there is as informed a debate as possible”. He pledged to release the assumptions behind the Bank’s forecasts when they are updated after the terms of the UK’s new relationship with the European Union are agreed. - The Times Business needs a new relationship with society and must restrict executive pay, a senior Labour MP believes. Chuka Umunna, the former shadow business secretary, called on companies to adopt pay structures that require senior employees to hold onto equity for longer and said there should be a Swedish-style system of large shareholders serving on committees that recommend pay policies. - The Times One of Europe’s most senior central bankers has said that virtual currencies such as bitcoin should be the focus of regulators despite their relatively small size because of the potential risk they pose. Yves Mersch, a member of the executive board of the European Central Bank, told a meeting in London yesterday that cryptocurrencies were “not money” and that the authorities urgently needed to manage the threat they presented to the wider financial system. - The Times The Welsh technology company behind a key part of Apple’s new iPhone has been accused of “egregious” account manipulation by a notorious short seller, in the latest allegation of impropriety to be levelled at it. IQE, whose compound semiconductor technology is part of the iPhone X’s facial recognition sensors, fell 11% on Thursday when Muddy Waters Research said the company may be deceiving investors. - Telegraph BT’s mobile arm EE is to offer broadband to more than half a million of Britain’s most remote homes, in a sign of increasing convergence of the telecoms giant’s fixed line and wireless services. A new antenna will be fitted on the outside of subscriber properties to secure a reliable connection for EE’s 4G network in rural areas where thick stone walls can block mobile signals indoors. A router connected to the antenna will beam a Wi-Fi signal throughout the home. - Turnaround firms are circling the stricken Toys R Us chain as the retailer’s precarious financial position puts more than 3,000 high street jobs at risk. Last year the UK subsidiary of the bankrupt US chain won a stay of execution after landlords took back the keys to 26 shops and accepted less rent for those that stayed open. - Guardian Nine hundred jobs are under threat at three poultry plants belonging to 2 Sisters Food Group, the UK’s largest supplier of supermarket chicken, which has been dogged by a controversy over food standards. The potential closure of two of the firm’s West Midlands factories in Smethwick and Wolverhampton, plus a third in Cambuslang in South Lanarkshire, follow a nightmare year for the company, which has included the closing of a further site in Smethwick as well as a Guardian and ITV undercover investigation that prompted production to be suspended for five weeks last autumn at the group’s West Bromwich plant. - Guardian The government has launched a crackdown on unpaid internships, sending more than 550 warning letters to companies and setting up enforcement teams to tackle repeat offenders. HM Revenue & Customs is expected to target sectors such as media, the performing arts and law and accountancy firms, which have a reputation for using unpaid interns. - Guardian Following the financial crisis, high street banks have funded fewer SME housebuilders Alternative finance providers are stepping in to fill this void, offering investors high margins and attractive returns. One of these lenders, Clearwell Capital is currently fundraising with a 3-year secured bond paying 10% per annum. Click here to find out more. Capital at risk.   To advertise in the Euro Markets Bulletin please contact advertise@advfn.com     To unsubscribe from this news bulletin or edit your mailing list settings click here. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +44 (0) 207 0700 961. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49