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| London Market Report | | FTSE 100 | Euronext | Dax perf | CAC 40 | | | | | Please click on the images to view our interactive charts |
| Markets rangebound after steep sell-off The FTSE 100 opened broadly flat on Friday morning with markets rangebound as sentiment still remained fragile following the steep sell-off the day before.
The London benchmark lost 1.6% on Thursday after better-than-expected jobless claims data in the States ignited concerns that the Federal Reserve will soon begin to taper its quantitative easing programme.
Wall Street indices fell by a similar amount with the Dow Jones Industrial Average losing 225 points, its worst one-day drop in two months.
"In Europe this morning, we are flipping between small gains and losses across core indices on taper woes but unsurprisingly, value-hunting traders are attempting to buy the dip but upside momentum is heavily curbed," said Market Strategist Ishaq Siddiqi from ETX Capital.
"Like yesterday, traders are likely to spend the session trimming positions, rebalancing portfolios on the prospect of reduced liquidity in the market place and managing risk just to get ahead of the Fed. It's unlikely we will see many traders have a solid enough excuse to keep buying dips given that tapering fears keep a lid on moves to the upside," he said.
The ongoing violence and rising death toll in Egypt also continues to a worry for markets with oil prices advancing given the disruption risk to supplies coming through the Suez Canal.
Eurozone consumer price inflation and trade data is due out this morning, while economic indicators in the States will again be in focus with building permits, housing starts and the University of Michigan confidence survey are on tap this afternoon.
Miners rise early on
Mining stocks are providing support this morning with Randgold, Fresnillo, Antofagasta and Glencore Xstrata making gains, possibly as a result of rumours that China could unveil a stimulus package at some point this morning.
Even BHP Billiton was in demand despite the announcement that it could face enforcement action as part of the US regulatory probe linked in part to the hospitality it provided during its sponsorship of the Beijing Olympics in 2008. On a separate note, it was reported yesterday that a strike at BHP's Escondida project in Chile, the world's largest copper mine, came to an end.
Banking stocks were putting in a mixed performance this morning with RBS and Standard Chartered in the red and Barclays and Lloyds registering gains. Investec was weighing on the share price of RBS after downgrading the stock from 'hold' to 'sell'.
Accountancy software firm Sage was lower after saying that CFO Paul Harrison would step down today, two weeks earlier than originally planned.
On the FTSE 250, wireless technology group Anite was a heavy faller after saying that while full-year forecast are unchanged, it has seen a slow start in the market for testing mobile handsets. |
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| FTSE 100 - Risers Fresnillo (FRES) 1,187.00p +5.51% Randgold Resources Ltd. (RRS) 5,075.00p +3.78% Persimmon (PSN) 1,120.00p +2.10% Antofagasta (ANTO) 945.50p +1.67% ITV (ITV) 159.00p +1.53% Travis Perkins (TPK) 1,572.00p +1.22% Admiral Group (ADM) 1,293.00p +1.09% Glencore Xstrata (GLEN) 304.95p +1.04% Vedanta Resources (VED) 1,226.00p +0.99% Tullow Oil (TLW) 1,043.00p +0.97%
FTSE 100 - Fallers Royal Bank of Scotland Group (RBS) 336.80p -1.12% Wood Group (John) (WG.) 882.50p -1.06% International Consolidated Airlines Group SA (CDI) (IAG) 304.90p -1.04% Aviva (AV.) 400.10p -1.04% easyJet (EZJ) 1,240.00p -0.96% Reckitt Benckiser Group (RB.) 4,446.00p -0.96% Burberry Group (BRBY) 1,578.00p -0.94% ARM Holdings (ARM) 867.50p -0.80% Standard Chartered (STAN) 1,529.50p -0.78% Standard Life (SL.) 347.10p -0.69%
FTSE 250 - Risers African Barrick Gold (ABG) 157.80p +6.62% Polymetal International (POLY) 757.50p +5.43% Hochschild Mining (HOC) 253.30p +4.80% Balfour Beatty (BBY) 236.50p +4.65% AZ Electronic Materials SA (DI) (AZEM) 314.40p +3.59% Centamin (DI) (CEY) 37.25p +3.47% Bovis Homes Group (BVS) 745.00p +2.97% Menzies(John) (MNZS) 735.00p +2.65% Ferrexpo (FXPO) 187.60p +2.63% Salamander Energy (SMDR) 125.10p +2.54%
FTSE 250 - Fallers Anite (AIE) 111.80p -11.06% Bumi (BUMI) 214.30p -2.37% Keller Group (KLR) 953.00p -2.36% Domino Printing Sciences (DNO) 660.00p -1.71% Alent (ALNT) 330.90p -1.64% NMC Health (NMC) 314.00p -1.57% SIG (SHI) 175.30p -1.52% Evraz (EVR) 116.50p -1.35% JPMorgan Indian Inv Trust (JII) 319.70p -1.11% Savills (SVS) 612.00p -1.05% |
| UK Event Calendar | INTERIMS Alpha Pyrenees Trust Ltd., Datatec Ltd. (DI), Espirito Santo Financial Group SA
INTERIM DIVIDEND PAYMENT DATE Domino Printing Sciences, Imperial Tobacco Group, Sanderson Group
INTERNATIONAL ECONOMIC ANNOUNCEMENTS Balance of Payments (EU) (09:00) Balance of Trade (EU) (10:00) Building Permits (US) (13:30) Consumer Price Index (EU) (10:00) Current Account (EU) (09:00) Harmonised Index of Consumer Prices (EU) (10:00) Housing Starts (US) (13:30) Productivity (US) (13:30) U. of Michigan Confidence (US) (15:00) Wholesale Price Index (GER) (07:00)
GMS Silvermere Energy
EGMS Thorpe (F.W.)
AGMS 1pm, BATM Advanced Communications Ltd., Green China Holdings Ltd, Heath (Samuel) & Sons
FINAL DIVIDEND PAYMENT DATE Bacit Ltd, Castings, F&C Global Smaller Companies, Majestic Wine |
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| Europe Market Report | | FTSE 100 | Euronext | Dax perf | CAC 40 | | | | |
| Stocks little changed after US jobs data FTSE 100: -0.02% DAX: -0.15% CAC 40: 0.05% FTSE MIB: -0.21% IBEX 35: -0.01% Stoxx 600: -0.09%
European equities were mixed after a fall in US jobless claims fuelled speculation the Federal Reserve will scale back quantitative easing.
The number of claims for jobless benefits in the US declined by 15,000 to 320,000 in the week ended August 10th, the least since October 2007, the Labor Department revealed overnight.
The report lifted expectations that bigger job gains will give US consumers the ability to boost spending.
It also sent US stocks tumbling as investors pondered whether signs of an improving economy would prompt the Federal Reserve to begin trimming its $85bn per month in bond purchases.
Economists expect the central bank will begin cutting stimulus by September.
Policymakers are likely to turn to more economic indicators on Friday, including housing starts and consumer sentiment.
Housing starts are expected to show an increase of 8.9% to 91,000 in July, compared to a month ago. Building permits are forecast to come in at 935,000 in July.
The University of Michigan consumer sentiment report for August is anticipated to register a reading of 85.5, compared to 85.1 in July and the second-quarter average of 81.7.
In Europe, reports in focus include the balance of payments, balance of trade and the consumer price index.
Maersk, Bayer, Aviva
Danish shipping and oil group AP Moller-Maersk gained after posting higher second quarter profits.
Healthcare company Bayer rose after Barclays raised its rating of the stock to 'equal weight' from 'underweight'.
Aviva slumped following reports Iowa's insurance regulator approved the sale of its US operations to an insurer with ties to investment firm Apollo Global Management.
Other asset classes mixed
The euro/dollar slipped 0.01% to the 1.3346 dollar mark.
Brent crude futures were up $0.091 to $109.700 per barrel on the ICE. |
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| US Market Report | Tapering fears hammer stocks, Wal-Mart disappoints Dow Jones: -1.47% Nasdaq: -1.72% S&P 500: -1.45%
US stocks plunged on Thursday with the Dow registering a 225-point fall, its biggest one-day drop in two months, as disappointing corporate earnings and heightened fears of tapering dented investor confidence.
"It would appear that the weight of expectation surrounding an imminent tapering of asset purchases, along with a host of disappointing company earnings announcements, has prompted markets into thinking that a September taper is pretty much a done deal," said Senior Market Analyst Michael Hewson from CMC Markets.
The ongoing violence and rising death toll in Egypt continued to be a worry for markets after the interim government declared a state of emergency and Vice-President Mohamed ElBaradei resigned after a wave of bloody protests over recent days. Oil prices were higher on Thursday on fears that the unrest could disrupt supplies in the Middle East.
Back in the States, economic data was in focus today. Manufacturing surveys from New York and Philadelphia disappointed, while industrial production was flat, muddying the outlook for the world's largest economy.
However, data from the labour market – a deciding factor in the Federal Reserve's potential scaling back of stimulus – came in better than anticipated with jobless claims falling to their lowest levels since October 2007. In addition to a rise in consumer prices, speculation about an imminent tapering of asset purchases at the central bank's next meeting in September continues to ramp up.
Economic data comes in mixed
Consumer prices rose at a 0.2% month-on-month pace in July, as expected, with the annual rate rising to in line with the Fed's target of 2.0%. Core consumer prices (which exclude food and energy prices) also increased 0.2% from June and were up 1.7% from July 2012.
Initial jobless claims fell to 320,000 in the week ended August 9th, down from an upwardly revised 335,000 the week before (consensus forecast: 335,000).
The Empire State manufacturing index unexpectedly fell to 8.24 in July from 9.46 previously (forecast: 10). Meanwhile, the Philly Fed manufacturing index dropped sharply from 19.8 to 9.3 (forecast: 15).
Industrial production was flat in July, down from June's 0.2% rise (forecast: 0.3%).
Wal-Mart disappoints; Cisco to cut 4,000 jobs
Results from the world's largest retailer, Wal-Mart, sparked a fall in its share price today after the company reduced its full-year profit guidance and disappointed with worse-than-expected sales in the second quarter.
The earnings target range for this year was cut by 10 cents to between $5.10-5.30 a share on 2-3% sales growth, down from its prior 5-6% growth forecast.
Network-equipment group Cisco Systems was also in focus today after announcing that it would slash its workforce by 5.0%, getting rid of 4,000 jobs. The news came as the company posted net income of $2.3bn in the fourth quarter, up from $1.9bn the year before.
Newspaper publisher Gannett dropped after Warren Buffett's Berkshire Hathaway sold its entire stake in the firm - in the first quarter, it had held 1.7m shares worth around $38m.
Amgen's takeover target Onyx Pharmaceuticals finished firmly lower after it was reported that Onyx was asked for more information regarding an ongoing drug trial before the deal could be finalised.
S&P 500 - RisersD. R. Horton Inc. (DHI) $19.12 +5.69% J.C. Penney Co. Inc. (JCP) $13.83 +5.49% PulteGroup Inc. (PHM) $15.91 +5.29% Kohls Corp. (KSS) $53.51 +5.25% Lennar Corp. Class A (LEN) $33.28 +5.12% Newmont Mining Corp. (NEM) $33.22 +4.01% Estee Lauder Co. Inc. (EL) $67.36 +3.42% Deere & Co. (DE) $84.36 +2.45% Safeway Inc. (SWY) $26.31 +2.21% Newfield Exploration Co (NFX) $23.89 +1.49%
S&P 500 - FallersCisco Systems Inc. (CSCO) $24.49 -7.17% JDS Uniphase Corp. (JDSU) $13.45 -5.48% Gannett Co. Inc. (GCI) $24.29 -5.08% Micron Technology Inc. (MU) $14.13 -4.66% Hewlett-Packard Co. (HPQ) $25.95 -4.53% H&R Block Inc. (HRB) $29.63 -4.17% TripAdvisor Inc. (TRIP) $70.52 -4.12% Marathon Petroleum Corporation (MPC) $70.67 -4.10% Archer-Daniels-Midland Co. (ADM) $37.03 -3.92% Big Lots Inc. (BIG) $34.61 -3.83%
Dow Jones I.A - RisersCaterpillar Inc. (CAT) $85.86 +0.05% Alcoa Inc. (AA) $8.16 +0.00%
Dow Jones I.A - FallersCisco Systems Inc. (CSCO) $24.49 -7.17% Hewlett-Packard Co. (HPQ) $25.95 -4.53% Home Depot Inc. (HD) $75.14 -2.97% Wal-Mart Stores Inc. (WMT) $74.41 -2.60% Walt Disney Co. (DIS) $62.38 -2.47% Intel Corp. (INTC) $22.03 -2.39% United Technologies Corp. (UTX) $102.99 -1.97% Bank of America Corp. (BAC) $14.32 -1.92% Microsoft Corp. (MSFT) $31.79 -1.73% JP Morgan Chase & Co. (JPM) $53.29 -1.59%
Nasdaq 100 - RisersRandgold Resources Ltd. Ads (GOLD) $79.29 +3.08% Twenty-First Century Fox Inc Class A (NWSA) $16.10 +1.26% Nvidia Corp. (NVDA) $15.13 +0.63% CH Robinson Worldwide Inc (CHRW) $55.88 +0.29% Sears Holdings Corp. (SHLD) $41.73 +0.00%
Nasdaq 100 - FallersCisco Systems Inc. (CSCO) $24.49 -7.17% Micron Technology Inc. (MU) $14.13 -4.66% Seagate Technology Plc (STX) $39.52 -3.77% Western Digital Corp. (WDC) $66.02 -3.61% F5 Networks Inc. (FFIV) $89.23 -3.54% Equinix Inc. (EQIX) $165.89 -3.47% Cerner Corp. (CERN) $47.04 -3.43% Maxim Integrated Products Inc. (MXIM) $27.76 -3.41% Sandisk Corp. (SNDK) $55.94 -3.32% Monster Beverage Corp (MNST) $58.58 -3.29% |
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| Friday Press Round-up | Ryanair, Asda, Dell A Ryanair senior pilot was fired and is facing legal action over "defamatory" comments he made about the airline's safety policy in a Channel 4 documentary, The Telegraph revealed.
Asda has attributed a slowdown in sales growth in the three months to July 5th to keeping prices low, The Times reported.
Dell's earnings tumbled in the second quarter reflecting a continued weakness in PC sales, according to the Financial Times.
L'Oréal, the world's largest cosmetics group, has offered to acquire Chinese skincare company Magic Holdings International for HK$6.5bn, The Guardian said.
The former private-equity owner of Comet, the liquidated electricals chain OpCapita, has walked away with at least £54m while the taxman and suppliers are still waiting for their money, The Independent unveiled. | |
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