| London open: Stocks drop on downbeat Asian cues; Ted Baker tanks | | | | | London stocks fell at the open on Thursday, taking their cue from a mostly downbeat Asian session, as ex-dividends took their toll and fashion retailer Ted Baker tanked on the back of its interim results. At 0825 BST, the FTSE 100 was down 0.2% to 7,493.67, while the pound was 0.2% higher against the dollar at 1.2960 and 0.1% firmer versus the euro at 1.1289. Wall Street continued to outperform Europe, highlighted London Capital Group analyst Jasper Lawler: "After hitting a fresh record on Wednesday, the Dow closed off its high but stayed in the green for a fifth straight session. Financials led the way as treasury yields soared and interest rate expectations jumped higher. "The market is now pricing in an 80% probability of a rate rise in December. Additionally, the markets are reassessing how far the Fed’s tightening cycle will go and expectations are for rate rises to continue for longer.” Lawler noted that the "stunningly strong" US economy is growing at a faster rate than its peers, driving treasury yields to their highest since 2011. "As economic data from around the world misses expectations, US economic stats are consistently surprising to the upside. US non-manufacturing data proved to be a prime example, with activity in the sector expanding at the fastest pace in 20 years, whilst service sector PMIs from the UK and Europe were lacklustre at best." In UK corporate news, Ted Baker tumbled as it posted a rise in interim revenue thanks to a solid performance from its online segment but a 3.2% drop in reported pre-tax profit as it incurred exceptional costs of £600,000 related to debtor balances owed by House of Fraser which are not expected to be recovered following its entry into administration in August. Budget airline EasyJet, which said last week that full-year profit would be at the upper end of its guidance, flew lower after posting a 14.2% rise in passenger numbers for September but a drop in the load factor. Electronics and industrial components distributor Electrocomponents rallied as it said it plans to invest more in the Asia Pacific region to "drive faster longer-term growth" after a half year where group profits are expected to grow 27%. Smiths Group ticked just a touch higher after announcing the acquisition of industrial tube maker United Flexible from Arlington Capital Partners for an enterprise value of $345m. Healthcare company BTG advanced as it upgraded its full-year sales expectations thanks to strong products sales in the first half for its interventional medicine business, while CYBG and Virgin Money rose after they received approval by the FCA and PRA for their £1.7bn merger. In broker note action, Primark owner AB Foods was upgraded to 'buy’ at Berenberg, while Shaftesbury was lifted to 'neutral’ at Kempen and Ferrexpo was boosted to 'overweight’ at Barclays. Vesuvius was started at 'hold’ by Berenberg and Tullow Oil was upgraded to 'buy’ at Citi. Renishaw was lifted to 'hold’ by Stifel but Spire Healthcare was downgraded to 'underperform’ at Jefferies and Spirent was cut to 'hold’ by Stifel. Johnson Matthey was started at 'neutral’ by Exane. British American Tobacco, British Land, DS Smith, Intertek, Kingfisher, Smith & Nephew, Taylor Wimpey, WPP, 888 Holdings, AG Barr, Balfour Beatty, Bodycote, Daejan Holdings, Hastings, Hays Hunting, James Fisher & Sons, Rightmove, SIG, Synthomer, TP ICAP and Travis Perkins were among the companies whose stock went ex-dividend. | | | | | Exclusive Opportunity Disruptive cyber-crime prevention technology that will revolutionise the anti-virus market as we know it! Huge potential gains. Click here to find out more | | | | Top 10 FTSE 100 Risers| Sponsored by Interactive Investor | 
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| | | eToro Daily Update 03/10/2018 | | | | Today’s highlights: Bitcoin dips below $6,500 - Crypto slowdown continues: The cryptocurrency market was seen lower over the past 24 hours, as 8 of the top 10 crypto coins registered losses. At the time of writing, Bitcoin was down more than 1.8%, dipping below the $6,500 mark. Of the top 10 cryptocurrencies, XRP registered the largest losses, falling more than 8%.
- Asia seen lower: The new record set by the Dow Jones failed to lift markets in the East, as both the Nikkei and Hang Seng indices registered losses this morning. Markets in China are closed today in observance of a national holiday.
Read More.. | | | US close: Dow hits new high but tech weighs on Nasdaq | | | | | Wall Street had a mixed Tuesday as the Dow Jones index notched up another record high after the North American trade deal but its peers could not keep up the pace. The Dow Jones Industrial Average added 122.73 points, or 0.5%, to 26,773.94. The S&P 500 was just the wrong side of flat, down 1.16 points to 2923.43, while the Nasdaq Composite fell 37.75 points, or 0.5%, to 7999.55 due to a drag from FAANG stocks. The dollar gained against the pound and the euro, hitting three- and six-week highs, respectively. "It seems we can rely on the US markets to bail out souring global risk sentiment again and again," said market analyst Stephen Innes at Oanda. "But the question should be, how long can we expect this to continue." He said the Dow's record high fed off investors optimism around global trade as the North American trade deal removes at least one massive tariff related risk from the global financial market. "I wouldn’t' go as far as saying the markets are any less worried about China trade issues, however, but investors are breathing on a big sigh of relief that a significant barrier to global free trade has fallen. And indeed, just as significantly it allows the US administration to now focus exclusively on its escalating economic dispute with China." Elsewhere, tensions with China remain elevated, with US Navy officials accused China's military of "unsafe and unprofessional" behaviour around one of the reefs occupied by the Asian giant in the South China Sea. In other news, the yield on the benchmark 10-year US Treasury note was dipping by two basis points to 3.06%, helped by safe-haven flows linked to the ongoing budget squabble between Brussels and Rome. Oil prices remained supportive to the resources sector, with WTI Crude remaining over $75 a barrel. In corporate news, the financial sector took early losses as worries about Italian banks seeped across the Atlantic after a senior member of the coalition government said most of the country’s economic problems would be resolved if it readopted a national currency. “That is really a blip, it definitely doesn’t bleed through to the US financial infrastructure,” said analysts at Kenny's. Also helping were comments from Federal Reserve Governor Randal Quarles, who said banks with more than $250bn in assets could see regulatory relief as part of an ongoing regulatory review. Quarles, the central bank's vice chair for supervision of financial institutions, told members of the Senate, that banks with more than $250bn but not posing a threat to the system are part of a review into how post-financial crisis regulations should be tailored to fit the current climate. Elsewhere, tech stocks provided a weight on the Nasdaq. Online retailer Amazon dipped 0.72% after it announced plans to raise its minimum wage for US and UK workers in London to $15.0 and £10.5 an hour, respectively. For British workers outside out of London, it would go up to £9.50. But Facebook provided a weight on the tech sector as investors continued to recoil after the social media giant revealed its worst security breach at the end of last week. Intel, however, provided a boost for the Dow as the company's stock continued to bounce back and closed above a key level, the 50-day moving average, for the first time since 15 June, when its CEO resigned. PepsiCo lost 2.01% in early trade despite topping analysts' estimates for its third quarter, reporting earnings per share, excluding one-off charges, and of $1.59 (consensus: $1.57) and $16.49bn (consensus: $16.37bn), respectively. Separately, search engine Elastic NV raised the price range for its planned listing to between $33 and $35 per share, versus a prior range for between $26 to $29. | | | | | Invest in the revolutionary combustion technology that’s reducing emissions and cutting costs – with 400% Projected ROI by year 3 Find Out More | | | Thursday newspaper round-up: May, Nissan, copper, RBS | | | | | Theresa May has made a bold pledge to bring a decade of austerity to a close, as she appealed to the public over the heads of her squabbling party to back her to deliver a Brexit deal. Speaking in Birmingham on Wednesday at the end of the Conservatives’ annual conference, which was marred by repeated clashes over Europe, May cast aside the chancellor’s concerns about the health of the country’s finances and signalled Brexit would mark an end to public spending cuts. – Guardian The Japanese carmaker Nissan has warned the government that serious disruption will be caused to its huge manufacturing operation in the north-east of England if the UK fails to secure a deal with the EU that avoids a hard Brexit. Carlos Ghosn, the chair of Nissan, has described its British operations as “a European investment based in the UK”, which employs almost 8,000 people, mostly at its factory near Sunderland. A further 30,000 people are employed in UK companies supplying Nissan. - Guardian Demand for copper will surge over the next five years thanks to China’s huge global lending programme, according to the world’s biggest miner. BHP Billiton has estimated that China’s "belt and road initiative" will generate spending of around $1.3 trillion (£1 trillion) on infrastructure projects by 2023, driving an additional 1.6m tonnes of copper demand. This is equivalent to adding another 7pc to global demand. - Telegraph The Government has vowed to step up its efforts to wipe out late payments to small businesses with a new pledge to pay most of its own small suppliers within five days and a call for evidence on how best to tackle the problem in the private sector. Ministers will consider how new accounting technology and measures such as requiring companies to nominate a director responsible for fair payment practices could help stamp out the problem, which causes cashflow trouble for millions of small firms. - Telegraph A senior official at the Financial Conduct Authority held undisclosed meetings with a Royal Bank of Scotland executive while the lender was subject to a highly sensitive regulatory investigation into its scandal-hit restructuring unit, The Times can reveal. Simone Ferreira had “social drinks” on two occasions when she was the City regulator’s head of event supervision with Jon Pain, who was chief conduct and regulatory affairs officer of RBS. - The Times The company building the Hinkley Point C nuclear plant has been rebuked by French safety regulators for failings in the construction of a prototype reactor in Normandy. EDF, the French state-backed energy group, is building a reactor at Flamanville to the same design that it plans to use for the £20 billion twin-reactor Hinkley Point project in Somerset. - The Times | |
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