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Apr 12, 2018

Evening Euro Markets Bulletin

 
ADVFN III Evening Euro Markets Bulletin
Daily world financial news Thursday, 12 April 2018 17:40:37
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London close: Footsie underperforms as Sterling strengthens
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London stocks finished higher on Thursday, helped along by solid performances from Shire and Tesco, as the US President appeared to dial back a tad on the previous day's aggressive rhetoric on the situation in Syria.

Nevertheless, the FTSE 100 only managed to eke out a 0.02% or 1.20 point gain to 7,258.34 as the pound strengthened, especially vis-a-vis Europe's single currency.

By the closing bell, the pound was up 0.84% against the euro at 1.1559 and was also showing some strength against the Greenback, rising by 0.45% to 1.42394.

Over on the second-tier index it was a different story however, with the FTSE 250 climbing by 0.60% or 117.97 points to trade at 19,772.93.

Following on from his very provocative tweet a day earlier, in which he told Russia to "get ready" for missiles coming at Syria, Trump tweeted on Thursday: "Never said when an attack on Syria would take place. Could be very soon or not so soon at all! In any event, the United States, under my administration, has done a great job of ridding the region of ISIS. Where is our 'Thank you America'?"

Spreadex anayst Connor Campbell said: "This apparent de-escalation - however, temporary; the tone of Trump's twitter is often a coin toss - has allowed the markets to shake off their initial reticence."

This came as UK Prime Minister Theresa May summoned the cabinet to discuss the government's response to the suspected chemical weapons attack in Syria and, according to press reports, the meeting is likely to lead to a backing of US-led intervention.

May had already said that "all the indications" were that the Syrian regime of president Bashar al-Assad was responsible for the attack.

Investors were also digesting the release of the latest Federal Reserve minutes late on Wednesday, which showed US central bankers were more confident on the economic outlook when they last met to decide on policy, with several of the belief that at some point in about two years' time rates would need to rise above their normal longer-run value.

On the corporate front, Tesco was riding high again following its results on Wednesday, but Shire was the standout gainer, amid reports that Japan's Takeda has sounded out creditors for loans as it moves closer to making a bid for the group.

Shares of transport operator FirstGroup surged after saying late on Wednesday that it had received a "preliminary"and "highly conditional" indicative proposal from private equity firm Apollo Management, but that this was unanimously rejected on the basis that it fundamentally undervalues the company.

Stock of Intertek Group on the other hand was little changed after saying it has agreed to buy Proasem, a provider of laboratory testing, inspection, metrology and training services, based in Colombia, for an undisclosed sum.

National Grid edged up as it said major storms in the US will dampen its full-year profits, which for earnings per share will be largely offset by better finance costs and tax.

Countryside Properties shares advanced after announcing the acquisition of Leicester-based partnerships housebuilder Westleigh for up to £135.4m in cash on debt free and cash free basis.

LondonMetric Property were also on the up, as it announced the disposal of four distribution and two industrial warehouses for £36m on Thursday, reflecting a blended net initial yield of 5.9%.

Meanwhile, gambling technology company Playtech racked up strong gains as it agreed to buy 70.6% of Italian betting and gaming outfit Snaitech from two major shareholders for €846m.

Man Group rallied as it reported strong net inflows for the first quarter, while homewares retailer Dunelm advanced after posting a 5% jump in third-quarter revenue.

Greene King fizzed higher after saying it remains well placed to withstand the external market challenges and deliver long-term value to its shareholders.

Over-50s specialist Saga made solid gains despite posting a drop in full-year pre-tax profit, as it sounded an upbeat note on its outlook.

British Airways and Iberia parent International Consolidated Airlines Group on the other hand flew lower after saying it has taken a minority share in Norwegian and that it is considering a full offer for the airline.

WH Smith was on the back foot after saying its interim profits held more or less steady, while recruiter Hays slipped as it posted a 10% rise in like-for-like gross profit in the third quarter as the UK remained a sore spot.

Pets at Home was in the dog house after Morgan Stanley said that having analysed the accounts of almost 400 of its JV Vet practices, it has become "rather sceptical about the main bull point in the Pets at Home investment case".

Sky was in focus after the UK Takeover Panel ruled Walt Disney will have to make a mandatory takeover offer for Sky within 28 days of the completion of its acquisition of 21st Century Fox's assets, if the rival Fox and Comcast bids fail.

In broker note action, Mitie was upgraded to 'outperform' at RBC Capital Markets, while Ocado was cut to 'neutral' at JPMorgan. SIG was lifted to 'buy' from 'hold' at Shore Capital but Auto Trader was hit by a downgrade to 'neutral' at Exane BNP Paribas.

ITV, Reckitt Benckiser, Paddy Power, Smurfit Kappa, Esure and BBA Aviation were all weaker as their stock went ex-dividend.


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Market Status
 
 
change pct
+0.02%
 
cur price
7,258.90
 
change
+1.76
 
 
change pct
+0.07%
 
cur price
19,667.87
 
change
+12.91
 
 
change pct
+0.00%
 
cur price
3,355.25
 
change
+0.00

Top 10 FTSE 100 Risers

# NameChange PctChangeCur Price
1Next Plc+2.01%+98.004,974.00
2Shire Plc+2.01%+72.003,661.50
3Mediclinic International plc+1.87%+10.80586.80
4Tesco+1.46%+3.30228.70
5Marks & Spencer+1.40%+3.70268.70
6Schroders+1.13%+36.003,235.00
7Hargreaves Lansdown+0.89%+15.001,705.00
8Legal & General Group+0.75%+2.00267.80
9Ashtead Group+0.75%+15.002,027.00
10Convatec+0.74%+1.50203.70

Top 10 FTSE 100 Fallers

# NameChange PctChangeCur Price
1ITV Plc-4.39%-6.60143.60
2Reckitt Benckiser-2.03%-125.006,025.00
3Paddy Power Betfair-2.01%-145.007,085.00
4Fresnillo plc-1.91%-24.501,261.00
5Micro Focus International-1.71%-20.001,150.00
6Smurfit Kappa Group-1.55%-46.002,926.00
7Merlin Entertainments Plc-1.34%-4.60338.60
8Randgold Resources-1.26%-74.005,802.00
9International Consolidated Airlines Group -1.10%-6.80608.80
10Rentokil Initial-1.08%-3.00275.60

Daily cryptocurrency Tracker 11.4.18: Slight gains in crypto market

The cryptocurrency market continues to rock back and forth, as 9 of the top 10 cryptos registered small gains over the past 24 hours. This is the third day in a row in which the...

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Crypto Currencies
#1 Bitcoin (BTC)
change
-1.63%
mktcap
116.07B
volume
48124.54T
price
6,830.00
#2 Ethereum (ETH)
change
-1.69%
mktcap
41.69B
volume
12855.88T
price
422.25
#3 Ripple (XRP)
change
-5.70%
mktcap
19.91B
volume
8706.54T
price
0.51
#4 Bitcoin Cash / BCC (BCH)
change
-0.98%
mktcap
11.29B
volume
3629.27T
price
662.04
#5 EOS (EOS)
change
-1.23%
mktcap
6.57B
volume
21706.42T
price
8.36

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US open: Positive start on Wall Street as geopolitical tensions ease

Wall Street trading opened on a positive note on Thursday following heavy losses in the previous session, after Donald Trump backtracked on the aggressive stance he took on Syria a day earlier.

At 1530 BST, the Dow Jones Industrial Average and Nasdaq were up 1.25% and 1.22%, respectively, while the S&P 500 had moved 0.98% firmer.

Following on from his very provocative tweet a day earlier, in which he told Russia to "get ready" for missiles coming at Syria, Trump tweeted on Thursday: "Never said when an attack on Syria would take place. Could be very soon or not so soon at all! In any event, the United States, under my administration, has done a great job of ridding the region of ISIS. Where is our 'Thank you America'?"

Spreadex analyst Connor Campbell said: "This apparent de-escalation - however, temporary; the tone of Trump's twitter is often a coin toss - has allowed the markets to shake off their initial reticence."

He pointed out that the Dow is looking at a 100-point climb after the openng bell, a move that would send the index back towards 24,300, keeping it at the top end of its recent trading bracket.

"There's nothing this afternoon to draw attention data-wise, so investors' attention may well linger on their twitter feeds," Campbell said.

On the corporate front, Bed Bath & Beyond tumbled 18.81% on the back of a bleak outlook.

BlackRock was up 2.61% as it posted a 28% year-on-year jump in first-quarter earnings, while Delta Airlines advanced 3.85% after its first-quarter profit and sales beat expectations.

Elsewhere, Rite Aid gained 2.15% after the drugstore chain's fourth-quarter results impressed, while housebuilder Lennar dropped 1.96% after it said chief executive officer Stuart Muller will become executive chairman and be replaced by current president Rick Beckwitt.

On the macroeconomic side, US initial jobless claims were down 9,000 from the previous week's unrevised level to 233,000, meaning the number of Americans filing for unemployment benefits fell a little less than expected, according to data from the Labor Department.

Economists had been expecting a slightly bigger drop to 230,000.

The four-week moving average rose by 1,750 to 230,000. The four-week average is considered more reliable as it smooths out sharp fluctuations in the more volatile weekly figures, giving a more accurate picture of the health of the labour market.

A separate report released by the Labor Department revealed that import prices remained unchanged throughout March after climbing by 0.3% in February, but export prices had increased more than expected by analysts.

Economists had expected import prices to rise by 0.2%.

Meanwhile, the Labour Department showed a 0.3% uptick in export prices in March after rising by 0.2% in the previous month. Export prices had been expected to rise by 0.2%.


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Thursday broker round-up

Ocado: JP Morgan downgrades to neutral with a target price of 505p.

Asos: Deutsche Bank reiterates hold.

First Group: Deutsche Bank reiterates hold.

PageGroup: Barclays reiterates equal weight with a target price of 560p.

Tesco: JP Morgan reiterates overweight with a target price of 265p.

Ashtead: JP Morgan reiterates overweight with a target price of 2,500p.

Oxford Instruments: JP Morgan reiterates overweight with a target price of 1,100p.

Mitie: RBC Capital Markets upgrades to outperform with a target price of 200p.

SIG: Shore Capital Markets upgrades to buy.

Gulf Keystone: Canaccord reiterates speculative buy with a target price of 250p.

McCarthy & Stone: Canaccord reiterates buy with a target price of 160p.

Swallowfield: Canaccord initiates buy with a target price of 420p.

Saga: Numis reiterates buy with a target price of 180p.

Polar Capital Holdings plc: Numis reiterates add with a target price of 528p.

Card Factory plc: Berenberg reiterates hold with a target price of 200p.

The City Pub Company: Berenberg reiterates buy with a target price of 210.

Scapa Group: Berenberg reiterates buy with a target price of 500p.

 

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