Morning Euro Markets Bulletin

ADVFN  Morning Euro Markets Bulletin Daily world financial news Tuesday, 26 June 2018 10:59:33 Monitor Quote Charts News CFD's Compare Brokers Free BB   Momentum Investing 5 FTSE Stocks Currently on Momentum At its core, Momentum Investing is about understanding the psychology of the market and how traders tend to "rush" into certain stocks. The goal being to identify and profit from such bull rushes. This report delves into the concept and looks at 5 Stocks that have seen positive momentum in 2018. Losses can exceed deposits. Download Report London open: Stocks recover but trade war concerns remain FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts London stocks edged higher in early trade on Tuesday following heavy losses in the previous session, but trade war concerns were expected to remain firmly on investors’ minds. At 0820 BST, the FTSE 100 was up 0.3% to 7,529.97, after suffering its worst day of losses since February on Monday amid escalating tensions between the US and China. The pound was up 0.1% against the euro at 1.1353 and flat against the dollar at 1.3283. London Capital Group analyst Jasper Lawler said: “With no change to fundamentals, there is little hope that this is anything more than a mere dead cat bounce. "As it starts to dawn on the market that this is not just another Trump tactic and the US President is in fact serious about initiating a damaging global trade war with potentially catastrophic economic consequences, traders are jumping out of risky assets and fast. With deteriorating US-Sino relations quickly approaching a point of no return, Wall Street tumbled lower following the trend set earlier in the day in Europe." On the data front, UK mortgage approvals numbers are due at 0930 BST. In corporate news, cruise operator Carnival was the standout gainer, bouncing back from a sharp selloff on Monday when it cut its full-year earnings outlook due to higher fuel prices and a strong US dollar. Sainsbury's shares were down as industry data from Kantar Worldpanel showed it lagging well behind its rivals, with sales down 0.2% in the past 12 weeks. Morrisons, where sales grew 1.9%, was the only one to see its shares not in the red, while Tesco's sales were up 1.4%. Ocado's sales grew 10.1%. BHP Billiton rose after saying that its Samarco joint venture has agreed to settle a 20bn reais (£4bn) deal with Brazilian authorities relating to the bursting of a tailings dam that killed 19 people in the Minais Gerais region in 2015. AstraZeneca ticked higher as it announced a series of board committee changes including appointing Nazneen Rahman as the chair of the drug company’s science committee. Anglo American advanced after saying that the value of rough diamond sales at De Beers rose to $575min the fifth cycle of this year from $554m in the fourth and $541m in the fifth cycle of 2017. Polymetal edged up as it said it has started up its new Kyzyl mine in Kazakhstan ahead of schedule and below budget, while brick maker Ibstock gained after agreeing to sell a former quarry near Bristol for £9.3m in cash. On the downside, specialist building products supplier SIG fell after agreeing to sell VJ Technology to UK private equity investment firm Primary Capital following a competitive disposal process. Consideration from the sale was expected to be around £29.7m, resulting in a gain on sale of £7.4m, with the proceeds set to reduce net debt. Petrofac gushed lower as it said it has taken $1.8bn of new orders since the start of the year, which is slightly more than at this stage last year but that the order backlog of $9.7bn was down from £10.2bn at the end of December and $13bn a year ago. Outside the FTSE 350, beleaguered flooring retailer Carpetright was trading lower after saying it swung to a full-year statutory pre-tax loss of £70.5m from a profit of £900,000 in 2017. In broker note action, Royal Mail rallied after an upgrade to 'sector perform’ from 'underperform’ at RBC Capital Markets, while Cairn Energy was boosted by an upgrade to 'buy’ from Bank of America Merrill Lynch. However, ASOS and Ocado were hit by downgrades at Redburn and Exane, respectively. Market Analysis 25/06/2018 TradeYour capital is at riskTrump might escalate US-China trade war furtherThe Wall Street Journal yesterday reported that President Trump might announce new restrictions on... Read More.. Market Status   FTSE 100   change pct +0.60%   cur price 7,555.02   change +45.18   FTSE 250   change pct +0.47%   cur price 20,871.18   change +96.76   FTSE TechMARK   change pct +0.21%   cur price 3,482.68   change +7.39 Top 10 FTSE 100 Risers #   Name Change Pct Change Cur Price 1 Carnival +5.24% +221.00 4,436.00 2 BHP Billiton +2.03% +32.60 1,635.40 3 United Utilities +1.81% +13.60 764.60 4 Next Plc +1.71% +102.00 6,064.00 5 Scottish & Southern Energy +1.68% +22.50 1,364.50 6 CRH Plc +1.62% +43.00 2,697.00 7 London Stock Exchange +1.55% +68.00 4,468.00 8 Centrica +1.43% +2.25 159.90 9 Severn Trent +1.43% +27.50 1,956.50 10 Persimmon +1.27% +32.00 2,555.00 Top 10 FTSE 100 Fallers #   Name Change Pct Change Cur Price 1 Sainsbury -1.44% -4.50 308.40 2 International Consolidated Airlines Group -1.35% -9.40 688.40 3 Tesco -1.07% -2.80 258.30 4 Vodafone Group -1.04% -1.92 182.26 5 Compass Group -0.77% -12.50 1,604.00 6 Hammerson Plc -0.53% -2.80 524.40 7 Rentokil Initial -0.46% -1.60 346.60 8 Convatec -0.41% -0.90 219.40 9 Shire Plc -0.31% -12.50 4,030.00 10 BT Group -0.18% -0.40 216.45 Atlantic Advisory - Share Tips of the Year 2018 Download Our Latest Report Here Losses can exceed deposits Europe open: Slight bounce in stocks as US trade adviser tones down rhetoric FTSE 100 Euronext Dax perf CAC 40 Stocks have started the session slightly higher, but with investors keeping an eye open for any new headlines on the global trade front. "Calls for a positive open come in spite of weak trading in Asia and on Wall St, where the tech sector was broadly hurt by White House threats to restrict Chinese investments in sensitive US technology companies, which was then not deemed to be China focused which opened the door to it being a global thing. "This trade spat story looks to have good legs on it everyone. Buckle up," Mike van Dulken and Artjom Hatsaturjants at Accendo Markets told clients. As of 0841 BST, the benchmark Stoxx 600 was edging 0.14% or 0.54 points higher to 377.71, alongside a 0.42% or 51.84 point jump on the German Dax to 12,320.77, while the FTSE Mibtel was bouncing back by 0.61% or 130.41 points to 21,484.37. To take note of, the yield on the benchmark 10-year Greek government bond was down by four basis points to 4.09% after Standard&Poor's revised its rating on the country's long-term debt higher, from B to B+. Stocks in the US finished off their intra-session lows overnight after White House trade adviser told CNBC that markets were overreacting ahead of the release, on Friday, of a Treasury Department report on restrictions on foreign investment. However, the spread between two and 10-year US Treasury note yields finished at 35 basis points on Monday - its narrowest level since August 2007. That was approximately when the Great Financial Crisis kicked-off. Also overnight, th Shanghai Stock Exchange's Composite Index fell into a bear market after dropping by over 20% from its most recent peak. Against that backdrop, and with little fresh data scheduled to be published on Tuesday, the market spotlight was on a meeting scheduled for later in the day between Germany's main political parties, the CDU, CSU and SPD to discuss immigration policy. In particular, Interior minister Horst Seehofer was expected to present his proposed national migration plan. France's Eutelsat rose after it ruled out a bid for British satellite rival Inmarsat. Just 24 hours before it had tabled its interest, news of which saw its shares shed 6.2%. JC Decaux on the other hand was lower on news that it had clinched the acquisition of Australian billboard specialist APN Outdoor Group for $831m (€722m). BMW's customs chief told the FT that the carmaker may need to shutter its Mini and Rolls-Royce plants in the UK should Brexit disrupt its supply chains. US close: Markets sink lower as Trump turns attention to Chinese investment US stocks ended Monday well into the red amid weakness in the technology and energy sectors, a warning from Harley-Davidson on the impact of EU tariffs, and more trade threats from president Trump - all of which dented risk appetite. The Dow Jones Industrial Average ended the session down 1.33% at 24,252.80, the S&P 500 was off 1.37% at 2,717.07, and the Nasdaq 100 ended the day 2.21% lower at 7,038.17. Neil Wilson, chief market analyst at Markets.com, said that 24,280 was "the magic number" for the Dow, adding that a close below that level would be a sign that the market was prepared to test new lows. Trump expanded his war of rhetoric, threatening to curb Chinese investments in the US for reasons of "national security", with a draft series of restrictions on inbound Chinese investments due to be published later in the week. It came after threats at the end of last week of a 20% tariff on all European cars, after the EU began implementing tariffs on Friday on $3.2bn of US imports. “Things worsened as the US markets got involved this Monday, the trade war fearing losses turning even uglier as the afternoon wore on,” said Spreadex analyst Connor Campbell. “Beyond the basic fact of the rumoured next round of China-attacking trade restrictions set to be announced by Trump this week, ones specifically targeting the tech sector, an announcement from Harley-Davidson seems to have played its role in the bloodying of trading boards this Monday. “The motorcycle firm said it would be shifting production of bikes for EU destinations out of the US in order to avoid the 'substantial’ burden of the retaliatory tariffs introduced by the European Union last week.” Harley-Davidson, which finished down 5.97%, also said that EU tariffs were likely to cost the company $90m to $100m on an annual basis. On the data front, a widely-followed gauge of US economic activity turned lower in May, but remained above levels seen the previous year. The Federal Reserve Bank of Chicago's national activity index slipped from a reading of +0.42 points for April to -0.15 in May, with its three-month moving average slowing from a reading of +0.48 in the month before to +0.18. Production-related indicators accounted for the bulk of the move to the downside, contributing -0.29 points in May, versus +0.33 in April. The contribution from personal consumption and housing was slightly more negative as well, with their contribution slipping from -0.03 to -0.04. In the same month a year ago, the activity index stood at -0.19, while the three-month moving average was at +0.10. Data from the Commerce Department, meanwhile, showed that sales of new US single-family homes rose in May. New home sales were up 6.7% to a seasonally-adjusted annual rate of 689,000 from a revised rate of 646,000 in April. Economists had been expecting a rate of 667,000. Compared with May 2017, new home sales were up 14.1%. The median price of a new home was $313,000, down from $318,500 in April. In corporate news, energy shares took a hit as Brent crude gushed lower after an initial surge following Opec's decision last Friday to boost production. Chevron and Exxon Mobil were both in the red, by 1.98% and 1.97% respectively. Semiconductor stocks were also on the back foot on the news that Trump was planning to further restrict China's investment in US technology companies. General Electric fell 2.3% after saying it agreed to sell its distributed power business to private equity firm Advent International for $3.25bn. Education Realty Trust bucked the trend, pushing 1.3% higher after announcing it had agreed to be bought by Greystar Student Housing Growth and Income Fund in an all-cash deal valued at around $4.6bn. Paradigm Capital are introducing structured real estate assets comprising of fixed income opportunities and managed fund positions It is increasingly clear the time for tangible assets is looming. Head for portfolio consolidation as opposed to market speculation. Click to register Tuesday newspaper round-up: Car industry warning, Carillion, Asda The car industry has warned Theresa May there is “no Brexit dividend” for the business, with 860,000 jobs being put at risk unless the government “rethinks” its red lines in negotiations. In the starkest warning yet from a single business sector, the car lobby has told the government that it needs “as a minimum” to remain in the customs union and a deal that delivers “single market benefits”. - Guardian Struggling city centres should end their dependency on retail by replacing shops with offices and housing, according to a report. The Centre for Cities thinktank said the increasing tendency for consumer spending to shift online was a particular risk for city centres in England and Wales that are overreliant on the consumer. - Guardian The collapse of Carillion and a spate of casualties on the high street meant that one in four UK businesses suffered a financial hit on the back of customer, debtor or supplier insolvency in the first six months of this year. Around 10pc of companies said another firm’s demise had had a “very negative financial impact” on their business, according to research by the insolvency practitioners’ trade body R3. - Telegraph The Pensions Regulator could seek to claw back money from Carillion’s former directors as it comes under increasing pressure from MPs to act in the face of the company’s yawning pension deficit. TPR said it was considering issuing a so-called 'contribution notice' against the senior management team behind the failed outsourcer, a move which would allow it to demand a contribution to the pension pot from particular individuals. - Telegraph Asda has again been named the worst of the big four supermarkets in terms of its treatment of suppliers. A survey of about 1,000 suppliers and trade associations commissioned by the Groceries Code Adjudicator found that 8 per cent of companies that supply the Walmart-owned chain said that it rarely or never complied with a legally binding code of practice. - The Times The government has rejected plans for a £1.3 billion tidal lagoon in Swansea Bay, saying the project would cost three times as much per unit of electricity as offshore wind and new nuclear power. Tidal Lagoon Power had hoped the project, involving a six-mile breakwater with turbines to generate renewable energy from the power of the tides, would be a “pathfinder” for five more tidal lagoons. Mark Shorrock, the green energy entrepreneur behind the project, hoped it could generate up to 320 megawatts of power at peak. Tidal Lagoon Power once aimed to start work on the project in 2015. - The Times   To advertise in the Euro Markets Bulletin please contact advertise@advfn.com     ADVFN Disclaimer Although we have sent you this email, ADVFN does not endorse any product or company nor is it responsible for the content of this news bulletin. We have not independently reviewed the information; claims or testimonials provided within the news bulletin and make no guarantee or warranty regarding its content. The opinions and recommendations expressed in this email are not those of ADVFN. Add us to your address book Unsubscribe from ADVFN news bulletin Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gables, Fyfield Road, Ongar, Essex, CM5 0GA. Support Tel: 0207 0700 961 Company registered in England and Wales: Number 2374988 VAT No: GB 549 2130 49