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Apr 16, 2018

Morning Euro Markets Bulletin

 
ADVFN  Morning Euro Markets Bulletin
Daily world financial news Monday, 16 April 2018 10:20:19
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London open: Stocks nudge down as investors mull Syria airstrikes; Whitbread surges
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London stocks nudged a touch lower in early trade on Monday as investors assessed the impact of US-led airstrikes in Syria at the weekend, though Whitbread and Shire bright spots.

At 0830 BST, the FTSE 100 was down 0.1% to 7,259.95, while the pound was flat against the euro at 1.1550 and 0.1% firmer against the dollar at 1.4247.

Rebecca O’Keeffe, head of investment at Interactive Investor, said: "Even though investors have moved past the Syria missile strikes and are working on the basis that there will be no extended conflict or market-adverse retaliation, equity markets are struggling for direction. This lack of positive reaction is a potential concern and is an indication that investors are wary.

"Until early this year, global market sentiment was strong enough to keep pushing markets higher unless there was a reason to go down. As Trump policy has shifted from being supportive of equity markets to being distinctly negative, and early hints of the next potential slowdown in growth begin to materialise, we are now in a situation where markets are looking for reasons to justify current valuations. Hence, good news does not have much longevity since investors are a little bit more cautious in the current climate."

UK Prime Minister Theresa May was expected to tell MPs on Monday that the airstrikes over the weekend were aimed at preventing human suffering and were in the Britain's national interest.

She is expected to say: "Let me be absolutely clear: we have acted because it is in our national interest to do so. It is in our national interest to prevent the further use of chemical weapons in Syria and to uphold and defend the global consensus that these weapons should not be used.

"We have done it because we believed it was the right thing to do. And we are not alone. There is broad-based international support for the action we have taken."

On the corporate front, advertising giant WPP fell on the weekend's news that Sir Martin Sorrell has stepped down as chief executive officer with immediate effect, with chairman Roberto Quarta becoming executive chairman until the appointment of a new CEO. Sorrell, whose exit follows an internal investigation into allegations of personal misconduct, will be treated as having retired from the company, meaning he will be entitled to up to 1.65m shares under long-term award plans dependent on WPP's performance.

Vedanta Resources dropped as it announced the appointment of AngloGold Ashanti CEO Srinivasan Venkatakrishnan as its new chief executive officer.

Galliford Try slipped after confirming it has raised £144.2m as 91.5% of its discounted rights issue of new shares was accepted by shareholders, backing management's plans to invest in growth.

On the upside, Premier Inn and Costa owner Whitbread surged as Elliott Advisers became its biggest shareholder, amid reports the activist investor is piling pressure on the company to break up the business and spin off Costa.

Shire, for whom the boss of Japanese drug maker Takeda is reportedly readying a £35bn bid, was in the black after agreeing to sell its oncology business to Servier for $2.4bn in cash.

Smurfit Kappa gained following a Times report that some of its largest investors have started to pressure the company to negotiate with International Paper if the US rival comes back with another takeover bid of more than €40 per share.

Speciality chemicals group Johnson Matthey was higher after announcing the appointment of Patrick Thomas as chairman, succeeding Tim Stevenson. Thomas has been CEO and chairman of the board at polymers business Covestro since 2015.

Listed infrastructure investment company HICL Infrastructure edged higher after announcing an investment in the biology, pharmacy and chemistry department of the Paris-Sud University PPP Project, taking an 85% ownership interest in the project alongside Bouygues Energies & Services and Bouygues Bâtiment Grand Ouest.

In broker note action, Barclays was upgraded to 'buy' at Jefferies, while Tesco was raised to 'hold' at Societe Generale. Kaz Minerals and Vedanta Resources were cut to 'neutral' from 'buy' at Goldman Sachs.


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Market Status
 
 
change pct
-0.22%
 
cur price
7,248.41
 
change
-16.15
 
 
change pct
+0.03%
 
cur price
19,845.02
 
change
+6.48
 
 
change pct
+0.20%
 
cur price
3,374.10
 
change
+6.83

Top 10 FTSE 100 Risers

# NameChange PctChangeCur Price
1Whitbread Plc+6.20%+244.004,179.00
2Smurfit Kappa Group+1.74%+52.003,034.00
3Rolls-Royce Holdings+1.66%+14.40881.20
4Hammerson Plc+1.55%+7.35480.35
5Paddy Power Betfair+1.26%+90.007,210.00
6International Consolidated Airlines Group +1.15%+7.00616.00
7Scottish Mortgage Investment Trust+0.85%+3.80451.40
8BAE Systems+0.84%+5.00599.00
9Easyjet Plc+0.84%+13.501,624.50
10DCC Plc+0.83%+55.006,710.00

Top 10 FTSE 100 Fallers

# NameChange PctChangeCur Price
1Sage Group-2.53%-15.60601.40
2WPP Plc-1.85%-22.001,166.00
3British Petroleum-1.38%-6.95497.35
4Fresnillo plc-1.29%-16.501,267.50
5HSBC Holdings-1.11%-7.60677.60
6Rentokil Initial-1.07%-3.00276.50
7Associated British Foods-0.92%-24.002,596.00
8Scottish & Southern Energy-0.84%-11.001,300.00
9Imperial Brands-0.83%-20.502,442.50
10Standard Chartered-0.76%-5.60727.90

Daily cryptocurrency Tracker 16.4.18: Cryptos stay stable over the weekend

After having a strong finish last week, the crypto market remained steady over the weekend, as all the top 10 cryptos maintained their price levels. Despite showing small losses...

Read More..


Crypto Currencies
#1 Bitcoin (BTC)
change
-2.80%
mktcap
137.76B
volume
73325.09T
price
8,103.60
#2 Ethereum (ETH)
change
-2.35%
mktcap
50.83B
volume
19762.05T
price
514.60
#3 Ripple (XRP)
change
-2.54%
mktcap
25.85B
volume
9747.35T
price
0.66
#4 Bitcoin Cash / BCC (BCH)
change
-1.47%
mktcap
13B
volume
4831.18T
price
763.95
#5 Litecoin (LTC)
change
-2.73%
mktcap
7.17B
volume
8520.46T
price
127.90

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US close: Stocks on Wall Street dip as investors play it safe

US stocks finished slightly lower heading into the weekend with investors cautious going into the weekend due to the possible launch of missile strikes against Syrian government assets.

By the closing bell, the Dow Jones Industrials Average was down by 0.50% or 122.91 points at 24,360.14, with the S&P 500 off by 0.29% or 7.69 points at 2.656.30 and the Nasdaq Composite down by 0.47% or 33.60 points to 7,106.65.

In parallel, the yield on the benchmark 10-year US Treasury note was one basis point lower at 2.83%.

Significantly, banks fared poorly despite what appeared to be better-than-expected results from heavyweights JP Morgan and Citigroup.

Thus, from a sector standpoint the weakest areas of the market were: Banks (-2.44%), Electronic Office Equipment (-1.56%) and Apparel retailers (-1.50%).

Heading the other way, Gold Mining rose 2.64%.

Geopolitics remained in focus after UK Prime Minister Theresa May and US President Trump agreed during a late-night phone conversation that Syria’s suspected use of chemical weapons should not go unchallenged.

Downing Street said Cabinet ministers had agreed "on the need to take action" to "deter further use of chemical weapons" after concluding that it was "highly likely" the Assad regime was behind the chemical attack.

Helping to offset worries about the situation in Syria was the latest tweet from Trump about the Trans-Pacific Partnership.

"Would only join TPP if the deal were substantially better than the deal offered to Pres. Obama. We already have bilateral deals with six of the eleven nations in TPP, and are working to make a deal with the biggest of those nations, Japan, who has hit us hard on trade for years!," the US President said.

Investors were also digesting the latest data out from China earlier, which showed a surprise monthly trade deficit for the month of March, although analysts were quick to brush off its significance, pointing to the impact of seasonal effects around the Lunar New Year holidays.

China's trade balance swung to a deficit of $4.98bn from a surplus of $33.7bn the month before, versus expectations for a surplus of $19.6bn.

In corporate news, JPMorgan shares lost 1.77% after it said first-quarter profit rose 35% on the same period a year ago, partly thanks to lower taxes.

Citigroup shares fell 2.08% after posting rapidly expanding profits from its global consumer bank and a strong performance from its equities division that beat market expectations and Wells Fargo was down 2.87% after the bank emphasized that its results, which topped earnings forecasts, could be revised depending on the outcome of talks with regulators over a possible $1bn settlement.

Some analysts also pointed out how Well's Fargo's net interest income had fallen short of their forecasts.

Elsewhere, real estate listings company Zillow Group plunged 6.53% after saying late on Thursday that it will get into the business of buying and flipping homes.

SeaWorld Entertainment gained 2.99% after reporting losses late on Thursday.

On the data front, the Michigan consumer sentiment index fell to 97.8 from 101.4, below the consensus, 100.4.

"The consensus always looked optimistic, given the sensitivity of the index to the stock market. Both current conditions and expectations fell, by 6.2 points and 2.0 points respectively," said Ian Shepherdson, Pantheon Macroeconomics' chief economist.


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Monday newspaper round-up: UK high street, BHP Billiton, electricity bills

Dismal weather kept consumers away from the high street last month, prompting the steepest drop in shopper numbers since the end of 2010. The number of people visiting shops in March dropped 6% compared with the same month last year after strong winds and snow hit the UK. A survey of Visa card users indicated that consumer spending slid 2% in March, rounding off a poor start to the year for the retail sector. - Guardian

A homeowner in a housing complex in London with Grenfell-type cladding has been told the value of her £475,000 home has collapsed and is now just £50,000. Galliard Homes, the developer of the 11-block complex in New Capital Quay in south-east London, is facing a £30m-£40m bill to replace the cladding and is currently locked in a legal dispute over who should pay.-Guardian

The Bank of England has privately warned lenders that the withdrawal of its £127bn cheap funding scheme poses a “systemic risk” to Britain’s financial system. The Term Funding Scheme (TFS) was launched by Bank Governor Mark Carney after the Brexit vote to help keep interest rates low in the real economy, with most lenders gorging themselves on the available funds. - Telegraph

BHP Billiton could gain two years’ breathing space on a huge compensation claim from prosecutors in Brazil over a mining disaster that killed 19 people in 2015. A deadline for striking a new deal with authorities falls on April 20, with BHP and its Brazilian partner Vale hoping to seal an agreement that will for the first time include the government and both state and federal prosecutors. - The Times

The Commonwealth’s business chief has said it would be a “dereliction of duty” if Britain failed to boost exports to member states and persuade them to formally commit to free trade. Pulling together an agreement that endorses trade without tariffs or barriers would be “not that difficult”, Lord Marland, chairman of the Commonwealth Enterprise and Investment Council, said. - The Times

Annual household electricity bills could rise by almost £200, or a third, by 2025 because of increasing wholesale prices and green subsidies, leading analysts have warned. The upward pressure will force the government to increase its energy price cap repeatedly, according to the findings by Aurora Energy Research. This will leave ministers, who condemned leading suppliers last week for increasing energy bills, with the “politically awkward” reality of their own policies forcing up the level of their cap. - The Times

 

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