| Bargain Blue Chips 5 stocks trading significantly below their 2018 highs Seeking out undervalued companies that can offer attractive potential for a bounce back to what investors feel represents their "fair value" is a strategy often favoured by FTSE investors. With this approach in mind, our latest report looks at 5 Bargain Blue Chip stocks; medium-term charts, potential support and resistance levels, broker recommendations and target prices 78% of retail clients lose money, consider affordability. Get the report here » | | | London open: Financials lead Footsie lower over Italy budget worries | | | | | London stocks nudged lower in early trade on Friday, with the financial sector leading the downside amid the prospect of a clash over Italy's budget. The FTSE 100 fell 8.5 points or 0.1% to 7,536.95 in the first hour of trading. Sterling softened yet further against the dollar to 1.3065 and was slightly stronger versus the euro at 1.1246 as the single currency wobbled to a fresh two-week low against the dollar with investors fretting over the Italian budget. The Mediterranean country’s government agreed to target a deficit of 2.4% of gross domestic product for the next three years, thus well beyond the 1.6% level being pushed by the country’s finance minister Giovanni Tria but comfortably around the level deemed necessary by co-deputy Prime Minsters Luigi Di Maio and Matteo Salvini as they seek to deliver on their respective electoral promises. This was "putting two fingers up to Brussels", said analyst Connor Campbell at Spreadex. "That decision does little to rein in Italy’s debt, as the country had promised the EU it would do, and has hit its banking stocks hard, with their losses leading the FTSE MIB more than 2% lower." This in turn has spread to other the indices, with Germany's DAX and CAC down 0.6% and 0.5% respectively, while the 10-year spread between Germany and Italy is around 29 basis points wider at 265bp. Whilst US markets closed off their highs, Asian markets powered upwards overnight, supported by a lift in oil, noted Jasper Lawler, market analyst at London Capital Group added, with oil concerns heightened over a tightening in the physical market from Iran’s supply loss and declining Venezuelan output. "Oil will remain in focus across the European session as it is on track for its third weekly gain." Brent crude pushed oil to $82.44 a barrel overnight but was back below $82 by the start of the European session. In UK data Gfk Consumer Confidence missed expectations, falling to -9 from -7 in August, versus the -8 consensus estimate. "The danger is that consumers might capitulate on how they feel about their personal finances," said Joe Staton, client strategy director at GfK. "If that happens, we'll see very sharp drops indeed in the overall index score in the months up to March 2019." There are inflation and GDP releases in Europe and the US due later. Among London blue chips, financial stocks were dominating the lower echelons of the Footsie, with non-life insurer Admiral, banks RBS and Barclays, asset manager Standard Life Aberdeen and life insurer Avvia all among the bottom ten. RSA Insurance was the biggest faller as poor UK underwriting results drove a disappointing overall third quarter, despite reporting a “strong” quarter for its international businesses. Net written premiums for the third quarter were up 4% year-on-year but large and weather losses were above expected levels in the quarter and “particularly elevated” in the UK. Commercial landlord Shaftesbury fell after saying potential clients for larger and smaller properties in London's West End were being cautious, with one major retailer pulling out despite having agreed terms. United Utilities dipped as the water company said it had increased revenue in the first half of the year but that statutory profits will take a hit from extra investment to cope with the long, hot summer. Games Workshop staggered lower after ex-chairman Tom Kirby sold £20m worth of shares at a price £36.50 apiece, representing around 1.7% of the total. He will hang on to his remaining 4.8% stake for at least 180 more days. Millennium & Copthorne Hotels dropped only slightly despite new chief executive Jennifer Fox stepping down after less then four months in the job. Public sector outsourcing specialist Serco soared as it made an unscheduled announcement confirming that trading is set to be stronger than previous guidance for revenues, profitability and cash flow with net debt set to end the year at a lower level too. EasyJet flew higher as the budget airline said it expected to deliver full year pre-tax profit of between £570-580m, in the upper half of previous guidance and despite the impact of strike action and weather-related air traffic restrictions across Europe. Miners were mostly higher, led by gold miners Randgold and Centamin. | | | | | Invest in the revolutionary combustion technology that’s reducing emissions and cutting costs – with 400% Projected ROI by year 3 Find Out More | | | | Top 10 FTSE 100 Risers| Sponsored by Interactive Investor | 
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| | | eToro Daily Update 28/09/2018 | | | | Today’s highlights: Global markets mostly higher - Wall Street shakes off losing streak: Wall Street finished on a positive note yesterday, as the S&P 500 and Dow Jones snapped 4-day and 3-day losing streaks, respectively. The Nasdaq continued its positive momentum, also closing higher. Tech stocks were on the rise yesterday, with gains seen in Apple, Amazon, Facebook, Alphabet (Google) and others.
- Asia seen higher: Markets in the East followed Wall Street’s lead, showing impressive gains this morning. Both the Nikkei and China50 indices were up more than 1% at the time of writing, joined by the Hang Seng index.
Read More.. | | | US close: Markets move higher amid deluge of data | | | | | Wall Street trading finished Thursday in the green as investors digested news of the Fed's third interest rate hike this year, and leafed through a tsunami of economic reports, including an update to the nation's second-quarter GDP. The Dow Jones Industrial Average ended the session up 0.21% at 26,439.93, the S&P 500 was ahead 0.28% at 2,914.00, and the Nasdaq 100 managed gains of 0.88% to 7,629.57. Stocks moved higher on Wednesday too, as traders welcomed the Fed's decision to stop describing its policy stance as "accommodative", even as it hiked the target range for the Fed funds rate by 25 basis points to between 2.0% and 2.25%. However, stocks slipped in the last 30 minutes of trading, after Powell explained that that wasn't meant as a signal. “In what has so far been a disappointing reversal following last Friday's record peak, the Dow Jones attempted to buck the week’s downward trajectory after the bell, pushing back towards 26,450 as it rose 50 points,” said SpreadEx analyst Connor Campbell earlier. “Granted, that is not a huge move higher, and leaves it around 300 points shy of the levels struck just over a week ago; however, given it is less than 24 hours after the Fed’s interest rate rise and December hike-suggesting statement, it's a decent enough start.” Elsewhere, trade concerns also remained on investors' minds after Chinese officials took aim at Donald Trump earlier in the week, accusing him of "trade bullyism" and a racist "America First" agenda that came at the cost of international relations. Investors also spent much of the day with one eye on a Senate hearing of Supreme Court Justice nominee Brett Kavanaugh, who is facing allegations of sexual misconduct. On the data front, initial jobless claims for the week ending on 22 September increased by 12,000 to 214,000, according to the Department of Labor. Economists had forecast 205,000. The very closely-followed indicator of the health of the US labour market surprised slightly as economists had forecast 205,000. However, analysts had cautioned that recent hurricanes could potentially lead to upwards distortions in the figures. Elsewhere, demand for long-lasting goods produced by US manufacturers increased last month as a result of aircraft orders taking off. The Commerce Department revealed that orders for durable goods, which reflects manufactured products intended to last a minimum of three years, rose a seasonally adjusted 4.5% in August. The improvement marked the best gain since February - well above the 2.1% improvement economists had forecast. Also from the Commerce Department, the government body revealed that US real gross domestic product rose at a 4.2% annualised rate across the second quarter, unrevised from earlier estimates. “Literally, when you look at the durable number and GDP it makes your jaws drop- this makes you think why investors should not be worried about the trade war,” said Think Markets'chief analyst Naeem Aslam. “Having said this, some investors are still not convinced with this number because of the noise it carries. Hence the equity markets haven't shown much excitement.” In corporate news, T-Mobile US shares got a 2.47% boost after analysts at Guggenheim upped the telco's target price, and Salesforce rose 1.33% after Jefferies hiked its target price on the firm. Wayfair also picked up 2.75% following an increase to its target price over at MKM Partners. Carnival shares sunk 4.84% after a weak fourth-quarter guidance Geron plummeted 62.92% after its collaboration deal with Janssen was aborted, and Bed Bath & Beyond tumbled 21% after its earnings and revenues missed expectations on the Street. | | | Friday newspaper round-up: Sainsbury's-Asda, Brexit, Tui, trade war, Ofgem, Scotland, Tesla, Elon Musk | | | | Banks, insurers and telecoms providers face an investigation into how they treat long-standing customers after Citizens Advice said that loyalty was costing consumers more than £4 billion a year. The charity has lodged a super-complaint with the Competition and Markets Authority (CMA) after finding that households pay almost £900 a year too much on average across the mobile phone, broadband, insurance, savings, and mortgage markets. - The Times The UK's competition watchdog had found that the proposed tie-up between Sainsbury’s Asda could reduce competition in the UK grocer market as there are because nearly 500 areas across the country where the two supermarkets overlap. The Competition and Markets Authority has pinpointed 463 locations that raise potential concern following its initial investigation into the £15bn deal. - Telegraph Nearly two-thirds of businesses have yet to do any risk assessment of a no-deal outcome in the Brexit negotiations as “Brexit fatigue” sets in, the British Chambers of Commerce has found. With six months to go until the UK leaves the EU, the BCC said many small- and medium-sized businesses (SMEs) were “either awaiting more clarity before they act or are suffering from Brexit fatigue and have switched off from the process because they don’t believe they will be affected”. - Guardian Package holiday firm Tui shrugged off a long summer heatwave as it said full-year profits would rise by at least 10 per cent. It comes days after rival Thomas Cook’s shares plunged 28 per cent after it warned profits would be lower this year as warmer weather meant holidaymakers delayed trips. - Daily Mail America and China have been urged to “show restraint” after their escalating trade war forced the World Trade Organisation (WTO) to downgrade forecasts for the next two years. America and China have been urged to show restraint after the escalating trade war forced the World Trade Organisation to downgrade its forecasts for the next two years. - The Times Energy watchdog Ofgem has opened investigations into four suppliers over their "poor handling of customer complaints" and warned that consumer satisfaction is still “unacceptably low” across the board. The regulator has launched a probe into First Utility, Ovo Energy, Utilita and ScottishPower over their customer complaints processes following its latest review of the sector. - Telegraph Scotland’s auditor general has said Nicola Sturgeon’s government needs to be more open about its loans to private firms following a row about a bailout for a Glasgow-based shipbuilder. Caroline Gardner said the Scottish government needed to produce clear rules on how and when it would lend money to businesses, as well as publish clear accounts covering all public spending in Scotland. - Guardian The millionaire behind Amigo Loans has bought the Bestival and Camp Bestival music festivals, days after threatening to put them into administration. James Benamor, 41, lent the festivals £1.6 million last year, but issued administration notices in the High Court last week. - Daily Mail Elon Musk faces removal from Tesla after the Securities and Exchange Commission launched a fraud case against him last night. The SEC said that Mr Musk, the chief executive of Tesla, harmed investors and misled the market when he said last month that he had secured funding for a $70 billion buyout of the electric carmaker. - The Times One of the world’s richest men is planning to build three new properties on his Highland estate with an extra 37 bedrooms, because his family’s visits are limited “by lack of accommodation”. The billionaire ruler of Dubai, Sheikh Mohammed Bin Rashid al-Maktoum, hopes to add to the 30 bedrooms already at his disposal on Inverinate estate in Wester Ross. - Telegraph Jamie Oliver’s business empire slumped to a loss of nearly £20m last year, dragged down by a grim year at his restaurant chain which was forced to close a dozen outlets in February. The company said it had suffered from the “ongoing challenges of the casual dining sector”, which has resulted in a series of well-known restaurant chains, including Carluccio’s and Byron, closing outlets after over-enthusiastic expansion followed by significant increases in costs, particularly rent and labour. - Guardian Britain will finally say goodbye to the long hot summer of 2018 this weekend with temperatures set to plunge dramatically today. Forecasters say that the 24C (75F) enjoyed on a glorious sunny day in the south-east yesterday is unlikely to be repeated until next year. - Daily Mail The heads of Britain’s leading independent schools have urged universities to stop making unconditional offers to pupils amid mounting evidence that they are damaging performance in A levels. They say that too many pupils are “taking their foot off the gas” when they learn that they do not need to pass their A levels, or even finish their course, to get into university. They are then lumbered with poor grades for the rest of their careers. - The Times Food giant Heinz has bowed to the "will of the people" and decided against changing the name of its Salad Cream to Sandwich Cream. Fans of the condiment made their outrage known in June when parent company Kraft Heinz announced that it was considering a name change for the first time in 104 years. - Telegraph The prime minister of New Zealand has been met with thunderous applause at the UN for her speech espousing global cooperation and kindness from world leaders, in stark contrast to Donald Trump’s portentous rejection of globalism earlier in the week. Jacinda Ardern’s national statement was viewed by many commentators as a direct rebuttal to the US president’s call for increased isolationism and national self-interest. - Guardian A plane has crash-landed in the ocean after overshooting a runway on the tiny island of Weno, north-west of Papua New Guinea. Local authorities confirmed the airliner - which was en route to Papua New Guinea from Micronesia - missed the runway and crashed into the water around 9.30am Friday local time. Miraculously, all 36 passengers and 11 crew members are alive, but plane was completely submerged and one passenger was injured. - Daily Mail | |
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