Morning Euro Markets Bulletin

ADVFN  Morning Euro Markets Bulletin Daily world financial news Monday, 16 July 2018 11:28:20 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 nudge up as May faces Commons showdown; Indivior surges FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts London stocks nudged a touch higher in early trade on Monday as Prime Minister Theresa May faced a showdown with Brexit rebels, while Indivior rocketed after a US court blocked the sale of a rival generic of its bestselling opioid addiction treatment. At 0830 BST, the FTSE 100 was up 0.1% to 7,665.96, while the pound was 0.2% higher against the dollar at 1.3249 and flat versus the euro at 1.1326. Chinese data released earlier showed that the economy slowed modestly in the second quarter, with GDP growth of 6.7%, down from 6.8% in the first quarter but in line with expectations. Meanwhile, fixed asset investment slowed to 6% in June from 6.1% in May and industrial production slid to 6% last month from 6.8% in May, missing expectations for 6.5% growth. However, retail sales rebounded from multi-year lows of 8.5% in May to come in at 9%, meeting expectations. Back in the UK, the Taxation Bill returns to the House of Commons later on Monday, while the Trade Bill returns on Tuesday amid calls from former education secretary Justine Greening for a second referendum. Lee Hardman, currency analyst at MUFG Bank, said: "The hard Brexiteers have offered amendments to the Bill, which would restrict the government’s ability to follow through with their plan. However, the amendments are not expected to win sufficient support to pass but could still send a signal to May over a lack support within her party." Writing in The Times, Greening said the plans put forward by Theresa May represent "the worst of both worlds" and that the final decision on Brexit should be given back to the people. According to Greening, there are three options: May's deal, remaining in the EU or a clean break with no deal. In corporate news, Indivior surged after a US court granted a preliminary injunction to prevent Dr Reddy's Laboratories from selling a generic version of the company's Suboxone Film for treating opioid addiction until a decision is made on patent litigation. Aerospace, defence and energy components and systems company Meggitt was on the front foot as it announced a $21m contract with the Defense Logistics Agency in Richmond, Virginia, to supply fuel cell equipment for the UH-60 Black Hawk helicopter until 2022. Meanwhile, there were more signs of trouble on the high street as Debenhams slumped after denying reports that it was facing a cash crisis following reports over the weekend that credit insurers have cut cover for suppliers to the department store chain. Liberum said: "We have not managed to speak with the company at this stage, but note that instance of credit insurance withdrawals have been prevalent this year (House of Fraser, New Look and Poundland). If the news flow is true then it will heap more pressure on Debenhams, which has seen earnings per share downgrades of 54% since the beginning of the year." In broker note action, Micro Focus was hit by a downgrade to 'underperform' at Credit Suisse, but Countryside Properties was boosted by an initiation at 'buy' from Deutsche Bank, while Anglo American, ASOS and Ferrexpo were all upgraded by Citi. AA was cut to 'equalweight' at Barclays while Go-Ahead was under the cosh following a downgrade to 'hold' at HSBC. Invest in the revolutionary combustion technology that’s reducing emissions and cutting costs – with 400% Projected ROI by year 3 Find Out More Market Status   FTSE 100   change pct -0.12%   cur price 7,652.80   change -9.07   FTSE 250   change pct +0.56%   cur price 20,929.23   change +116.11   FTSE TechMARK   change pct -0.02%   cur price 3,576.32   change -0.81 Top 10 FTSE 100 Risers #   Name Change Pct Change Cur Price 1 Barclays +1.40% +2.66 192.34 2 Convatec +1.21% +2.50 208.60 3 BAE Systems +1.01% +6.80 678.20 4 Babcock International Group +0.93% +7.40 805.80 5 Standard Chartered +0.82% +5.50 676.50 6 Lloyds Banking Group +0.62% +0.39 62.80 7 G4S +0.59% +1.60 274.60 8 Ashtead Group +0.47% +11.00 2,366.00 9 Rentokil Initial +0.46% +1.60 351.40 10 Smiths Group +0.43% +7.50 1,742.50 Top 10 FTSE 100 Fallers #   Name Change Pct Change Cur Price 1 Micro Focus International -4.50% -57.50 1,221.00 2 Hargreaves Lansdown -4.11% -84.50 1,972.50 3 Admiral Group -1.64% -32.00 1,916.00 4 WPP Plc -1.41% -17.50 1,227.50 5 Next Plc -1.02% -62.00 6,044.00 6 Associated British Foods -1.01% -25.00 2,439.00 7 British Land Company -0.91% -6.00 650.40 8 Severn Trent -0.90% -17.50 1,923.50 9 United Utilities -0.90% -6.60 727.40 10 Std Life Aber -0.80% -2.50 310.10 Market Analysis 16/07/2018 TradeYour capital is at riskBecome a Professional Trader on eToroNew ESMA regulations will come into effect on August 1st. If you wish to keep trading with high leverage and enjoy... Read More.. US close: Banks drag on Wall Street as yield curve flattens a tad more Wall Street's main indices finished slightly higher on Friday despite the drag from banks' share prices following earnings from several sector heavyweights and a spot of weakness in a key gauge of consumer sentiment that fed into yet higher government bond prices. The Dow Jones Industrial Average was up by 0.38% or 9.52 points to 25,019.41 and the Nasdaq Composite finished ahead 0.03% to 7,825.98. The S&P 500 adde 0.11% to end at 2,801.31. From a sector standpoint, the best performance was seen in the following industrial groups: Coal (2.84%), Drug retailers (1.68%) and Aerospace (1.34%). However, the KBW index of lenders' shares fell 0.99% to 104.53, as the latest updates on earnings from JP Morgan, Citigroup and Wells Fargo failed to spark investors' buying appetite. In parallel, investors were keeping tabs on the Treasury yield curve, which slipped by one basis point to 25 on Friday. Commenting on the flattening yield curve, on Thursday strategists at Bank of America-Merrill Lynch had told clients: "but yield curve (2s-10s) just 26bps from inversion...preceded 7 out of past 7 recessions by 4-5 quarters (Chart 4) and rotation from cyclicals to defensives. "Market mocks and loves Fed: linking flat yield curve, wimpy US dollar bull market, tech’s lonely bull market...belief that at first hint of trouble Fed will stop hiking...views aided by lack of US wage growth and disbelief ECB & BoJ will ever hike." For his part, SpreadEx analyst Connor Campbell said the Dow went beyond 24,950 for the first time since mid-June as the index "continued its trade war-ignoring recovery." Yet while trade relations between the US and China remained on investors' minds, the focus at the end of the week was on the latest quarterly earnings from banking giants JPMorgan, Citigroup and Wells Fargo. Oanda analyst Craig Erlam said that with the earnings season now getting underway, investors were "looking for reasons to be more optimistic having spent months reading about the risks that a trade war poses to the economy". Across the pond, Donald Trump wasn't exactly getting a warm welcome in the UK as protesters launched a 20-foot tall 'Trump Baby' blimp above Parliament Square ahead of his meeting with the Queen. Trump sparked a big drop in the pound after saying in an interview with The Sun that if the UK goes ahead with the soft Brexit strategy revealed on Thursday - which would stick to a common rulebook with Brussels on goods and agricultural produce - any future trade deal with the US would likely be off the cards. Bloomberg later reported the US President as saying that his relationship with Theresa May was "very, very strong" and that he will discuss trade with her. In stocks, JPMorgan dipped 0.6% despite kicking-off the Wall Street earnings season with strong second-quarter results, while Citigroup shares slid 2.20% on a second-quarter revenue miss. Wells Fargo dropped 1.20% after its second-quarter report card showed that its fake account scandal was still hurting its bottom line, with shares of the lender among the most actively traded on the NYSE. Away from bank earnings, Johnson & Johnson was down 1.43% after it was ordered to pay $4.69bn in damages to 22 women who alleged that its talcum powder caused them to develop ovarian cancer. Elsewhere, AT&T dropped 1.74% after the Department of Justice filed for an appeal of a ruling allowing the company to buy TimeWarner. On the economic front, in his semi-annual report on monetary policy to Congress, Federal Reserve chairman, Jerome Powell, said that rate-setters expect "that further gradual increases in the target range for the federal funds rate will be consistent with a sustained expansion of economic activity, strong labor market conditions, and inflation near the committee's symmetric 2 percent objective over the medium term." Separately, the Bureau of Labor Statistics reported that the cost of import goods saw its biggest drop in roughly twelve months, despite worsening trade tensions between the Trump White House and other countries. The import price index sank 0.4%, the biggest decline since February 2016. Consumer sentiment in the US deteriorated in July amid trade war concerns, according to a preliminary reading from the University of Michigan. The consumer sentiment index fell to 97.1 from 98.2 in June, below expectations for an unchanged reading but up from 93.4 in July 2017. Meanwhile, the current economic conditions index printed at 113.9 in July from 116.5 the month before and 113.4 in the same month a year ago. The index of consumer expectations ticked up to 86.4 in July from 86.3 in June and 80.5 in July last year. Atlantic Advisory - Share Tips of the Year 2018 Download Our Latest Report Here Losses can exceed deposits Monday newspaper round-up: Brexit, global workforces, Debenhams, AA Justine Greening became the most high profile Conservative to endorse the idea of a second referendum, to end what she said would be a likely parliamentary deadlock over Brexit, warning that Theresa May’s Chequers plan did not represent “a workable compromise” that a majority of MPs could get behind. The former education secretary and remain supporter said that May’s plan was “a fudge I can’t support” and, in a blow to the prime minister, said it amounted to “the worst of both worlds” – complying with EU rules without the influence of being a member of the multi-country bloc. – Guardian Global workforces will fall as the next industrial revolution gets under way, the head of one of Germany’s biggest firms has warned, unless workers are retrained with new skills. Joe Kaeser, global chief executive of the engineering giant Siemens, said up to almost a third of jobs could be lost as the transition from combustion engines to electric cars takes place over the next decade, in what will be “one of the single most important transformations of all time”. - Guardian Debenhams is seeking to reassure the City it is in financial good health after a top credit insurer cut cover to suppliers of the troubled retail chain. Euler Hermes is understood to have reduced cover amid growing concerns about the department store giant’s ability to pay its bills in full and on time. A credit insurance industry source said the decision to reduce cover would be taken to “avoid unacceptable risk” and was a “similar sign to what other unsecured creditors might do” to limit exposure to the risk of unpaid bills. - The Telegraph Boards must give themselves discretion to override formulaic executive pay deals, the watchdog that sets boardroom rules has decided in the wake of the Persimmon fiasco. Flexibility to intervene in bonus schemes that pay out an undeserved jackpot is the most eye-catching reform in a string of changes to the principles and rules governing how power is exercised in listed companies. - The Times Mike Lloyd, the head of the AA insurance business who was punched by the group’s former chairman in an altercation last year, is leaving the company. The Times understands that Mr Lloyd will leave at the end of this year after about four years at the group. The executive, 39, who also has responsibility for marketing, digital and public affairs, is in the process of handing over his responsibilities. Mr Lloyd was in the headlines after Bob Mackenzie, then AA chairman, was dismissed for “gross misconduct” for punching him at a company gathering at the Pennyhill Park Hotel in Surrey. At the time it was suggested that Mr Lloyd, who did not retaliate when he was assaulted, was being lined up to replace Mr Mackenzie, now 65, when he retired. - 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. 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