Spot Prices as of traditional New York closing times
Friday, October 21, 2016
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Honest Forex News Within the limits of human subjectivity that all investments have to face.
Wednesday 19 April 2023
CMI | Spot Closing Prices on October 21, 2016
Friday 21 October 2016
Thursday 20 October 2016
CMI | Metals Spot Prices Closing on October 19, 2016
Spot Prices as of traditional New York closing times
Wednesday, October 19, 2016
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Thursday 7 November 2013
Morning Euro Markets Bulletin.
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| London open: Stocks fall as caution sets in ahead of ECB, US data - Investors scale back positions ahead of 'risk events' - MPC, ECB meetings in focus - US GDP, jobless claims on tap this afternoon techMARK 2,650.85 -0.10% FTSE 100 6,725.30 -0.24% FTSE 250 15,397.87 -0.04% UK stocks opened slightly lower on Thursday morning as caution set in ahead of a busy end to the week for financial markets worldwide. Benchmarks across Europe were lower "as investors refused to commit to long positions amidst a series of economic announcements due today which could have a massive impact on investors' sentiment", according to Financial Trader Shavaz Dhalla from Spreadex. On the agenda today will be the Monetary Policy Committee vote in the UK and German industrial production figures. However, the focus is likely to be on the European Central Bank policy decision this afternoon with many expecting to see a reduction in interest rates in response to last week's sharp fall in inflation across the euro area. Over in the States, eyes will be kept on a barrage of US economic data, including the initial estimate of third-quarter gross domestic product growth, personal consumption figures and the initial jobless claims report. Traders will also be looking ahead to the all-important non-farm payrolls numbers due out on Friday which are expected to show a sharp slowdown in employment growth in October. Randgold surges after Q3 results Gold miner Randgold Resources was a high riser in London this morning after recording a 80% quarter-on-quarter profit increase in the third quarter after a strong performance by its flagship Loulo-Gounkoto complex in Mali. The bottom-line growth came despite a 3% drop in the average gold price over the period. Food and sweetener company Tate & Lyle edged higher despite saying half-year profits slipped 6% after a soft beverage season in the US overshadowed growth in Speciality Food Ingredients and progress in emerging markets. Heading the other way was fund manager Schroders as it underwhelmed with a sharp rise in third-quarter profits. The company did say that its wealth management division suffered a £0.7bn net outflow following the loss of a large custody account. Coca-Cola HBC, the world's second-largest bottler of Coca-Cola, also declined after a dip in revenues in the third quarter as volumes were hit by tough economic conditions in Europe. The company also warned that trading conditions would "remain difficult" for the rest of 2013. Auto and bike parts retailer Halfords surged despite a 35% drop in its interim dividend as investors celebrated +6% improvements in like-for-like revenues and profits in the first half. Satellite operator Inmarsat was lower after recording a small fall in revenues in the third quarter and saying that delayed launches will "apply some downward pressure on operating profits during the year 2014". | ||||||||||||
| FTSE 100 - Risers Randgold Resources Ltd. (RRS) 4,875.00p +5.86% Carnival (CCL) 2,306.00p +0.87% Tate & Lyle (TATE) 800.00p +0.82% Marks & Spencer Group (MKS) 501.00p +0.32% Fresnillo (FRES) 993.00p +0.30% Antofagasta (ANTO) 860.50p +0.29% Shire Plc (SHP) 2,838.00p +0.28% Royal Bank of Scotland Group (RBS) 328.70p +0.21% Tesco (TSCO) 364.05p +0.19% Reckitt Benckiser Group (RB.) 4,806.00p +0.19% FTSE 100 - Fallers Schroders (SDR) 2,511.00p -3.61% Travis Perkins (TPK) 1,761.00p -2.38% Coca-Cola HBC AG (CDI) (CCH) 1,727.00p -1.65% Intertek Group (ITRK) 3,181.00p -1.18% Old Mutual (OML) 202.00p -1.08% G4S (GFS) 254.90p -1.01% Croda International (CRDA) 2,357.00p -0.97% Glencore Xstrata (GLEN) 338.70p -0.94% Reed Elsevier (REL) 869.50p -0.86% RSA Insurance Group (RSA) 119.10p -0.83% FTSE 250 - Risers Halfords Group (HFD) 461.30p +10.17% Grainger (GRI) 209.00p +6.09% Centamin (DI) (CEY) 51.15p +5.90% Betfair Group (BET) 1,017.00p +3.72% Kazakhmys (KAZ) 276.50p +3.13% Rank Group (RNK) 154.00p +2.67% Cable & Wireless Communications (CWC) 47.56p +2.28% BH Global Ltd. USD Shares (BHGU) 11.89 +2.06% Dialight (DIA) 1,056.00p +2.03% Supergroup (SGP) 1,227.00p +1.74% FTSE 250 - Fallers Inmarsat (ISAT) 660.00p -7.56% Brown (N.) Group (BWNG) 506.50p -2.31% Fidessa Group (FDSA) 1,957.00p -2.20% Micro Focus International (MCRO) 832.00p -1.94% Synthomer (SYNT) 228.50p -1.76% 3i Infrastructure (3IN) 133.20p -1.70% Domino Printing Sciences (DNO) 672.00p -1.47% RPC Group (RPC) 502.00p -1.38% Hunting (HTG) 896.00p -1.21% | ||||||||||||
| UK Event Calendar | ||||||||||||
Thursday November 07
INTERIMS
Cable & Wireless Communications, Dairy Crest Group, Halfords Group, Invensys, Shanks Group, Tate & Lyle, Wincanton
INTERIM DIVIDEND PAYMENT DATE
Bodycote, British American Inv Trust, Cenkos Securities, Hydrogen Group, SIG, Synthomer
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Bloomberg Consumer Confidence (US) (14:45)
Consumer Credit (US) (20:00)
Continuing Claims (US) (13:30)
ECB Interest Rate announcement (EU) (12:45)
Industrial Production (GER) (11:00)
Initial Jobless Claims (US) (13:30)
PMI Construction (GER) (08:55)
Q3 GDP (US) (13:30)
Q3
Hellenic Telecom Industries SA ADS, RSA Insurance Group, Talvivaara Mining Company (CDI)
FINALS
AB Dynamics, Grainger
ANNUAL REPORT
Associated British Foods
IMSS
Aviva, Beazley, Bumi, Cable & Wireless Communications, Dialight, Eurasian Natural Resources Corporation, London Mining, Morrison (Wm) Supermarkets, Ruspetro, Schroders, Schroders (Non-Voting), Spirax-Sarco Engineering, Synthomer
EGMS
Telekomunikacja Polska S.A GDR (Reg S)
AGMS
CAP-XX Ltd., Ceres Power Holdings, Hansard Global, JPMorgan Mid Cap Inv Trust, Jupiter Energy Ltd, Mirada, New Star Investment Trust, Schroder Japan Growth Fund
TRADING ANNOUNCEMENTS
Eurasian Natural Resources Corporation
UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Decision (12:00)
FINAL DIVIDEND PAYMENT DATE
Begbies Traynor Group, Penna Consulting, Photo-Me International, Wilmington Group
FINAL EX-DIVIDEND DATE
Downing Absolute Income VCT 1, Downing Absolute Income VCT 1 'C' Shares
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| Europe Market Report | ||||||||||||
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| Europe open: Stocks mixed ahead of central bank meetings
- ECB and BoE meetings in focus
- US GDP, jobs report
- US says German needs stimulus
- Italy showing no signs of revival, says Squinzi
FTSE 100: -0.16%
DAX: 0.08%
CAC 40: 0.11%
FTSE MIB: -0.52%
IBEX 35: -0.39%
Stoxx 600: -0.02%
European stocks were mixed ahead of policy meetings of the European Central Bank (ECB) and Bank of England (BoE).
Whispers the ECB could announce it will cut its benchmark interest rate today have been circulating following a dip in Eurozone inflation last week.
Bank of America, UBS and Royal Bank of Scotland (RBS) have forecast the ECB will cut the rate at the meeting while others believe the central bank will hold fire, at least until December.
Some economists have warned over recent days that simply cutting the main refinancing rate - the central bank's main policy tool - would achieve next to nothing.
Morgan Stanley, however, said a cut to the deposit rate may allow for some weakening in the single currency on foreign exchange markets.
According to Craig Erlam, Market Analyst at Alpari, this morning: "While I agree that there's certainly grounds for a rate cut today, with unemployment currently at record highs and inflation falling so low that deflation is becoming a very real threat, I don't believe the ECB will act today."
The BoE's Monetary Policy Committee (MPC) will also meet today to discuss interest rates and its quantitative easing programme, although they are expected to keep their policy unchanged.
IHS Global Insight's Chief UK & European Economist Howard Archer said it seems a "stone dead-certainty" that the BoE will maintain interest rates at 0.50% and asset purchases at £375bn following its meeting.
"Indeed, the markets and analysts will be most likely looking beyond the November MPC meeting and focusing much more on the November Bank of England Quarterly Inflation Report which is released on Wednesday 13th."
US economic data
US economic growth is expected to expand 2% in the third quarter, according to consensus ahead of this afternoon's gross domestic product figures.
A separate report is forecast to show US personal consumption expenditure rose 1.6% in the third quarter, compared to 1.8% the previous three months.
Initial jobless claims in the week to November 2nd are tipped to come in at 335,000, compared to 340,000 the week before.
The market is turning to economic data for clues as to when the Federal Reserve will begin scaling back its monthly $85bn bond buying programme.
Meanwhile the US Treasury thinks Germany should take a leaf out of its own book and learn to "lighten up", according to Chief Economist at markets.com Bill Hubbard. "If Germans would splurge now and again Europe would recover," he said. "If Europe would recover the global economy could rebalance."
In Italy, President of Italian employers' federation Confindustria Giorgio Squinzi yesterday announced in Brussels that the country was "well and truly in a situation of deflation", according to Reuters. He said Confidustria would cut its 2013 growth forecast, the most recent being a negative 1.8%, as the economy is showing no signs of revival.
Siemens, Swiss Re
Siemens advanced after saying it expected fiscal 2014 earnings per share to rise by at least 15% from last year.
Swiss Re climbed after the reinsurer reported third-quarter profit that beat analysts' estimates.
Deutsche Telekom slumped despite posting a rise in third-quarter adjusted earnings before interest, taxes, depreciation and amortisation that exceeded forecasts.
Bureau Veritas declined as the goods-inspection company reported third-quarter sales that trailed analysts' expectations.
Other asset classes mixed
The euro rose 0.04% to $1.3519.
Brent crude futures fell $0.295 to $104.930 per barrel on the ICE.
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| US Market Report | ||||||||||||
| US close: Dow hits record high as Microsoft jumps
- Microsoft rises as company shortlists CEO candidates
- Dow and S&P 500 rise, Nasdaq falls
- Eyes turn to upcoming economic data
Dow Jones: 0.82%
Nasdaq: -0.20%
S&P 500: 0.40%
US stocks finished broadly higher on Wednesday with the Dow Jones Industrial Average closing at an all-time high and the S&P 500 ending within touching distance of its record, helped by some large gains by software giant Microsoft.
The Dow finished 128.66 points higher (+0.8%) at 15,746.88, surprising its previous high reached on October 29th. Meanwhile, the S&P 500 rose 7.52 (+0.4%) to 1,770.49.
However, the Nasdaq ended slightly lower with social-media stocks, Tesla Motors and heavyweight constituent Apple offsetting gains made by Microsoft.
On the whole, investors were taking an optimistic approach as the focus turns to a number of key 'risk events' in the coming days, including the initial estimate of third-quarter US economic growth, jobless claims and the all-important jobs report.
Comments from President of the San Francisco Fed John Williams were also closely watched on Wednesday after he said he is not worried about current stock prices in spite of recent gains.
"If you look at the valuation of stocks today compared to earnings and dividends and relative to historical averages, it's not obvious that the stock market is overvalued, in fact a lot of models will tell you that it's under-valued given how strong profits have been," Williams said.
Leading indicators beat forecasts
The release of the Conference Board's index of leading economic indicators showed an increase of 0.7% in September after a 0.7% gain a month earlier, and came in ahead of the 0.6% rise expected by analysts.
However, the Mortgage Bankers Association revealed applications for US home loans fell 7% in the week ended November 1st, compared to a rise of 6.4% the previous week.
Microsoft gains on CEO speculation
Software giant Microsoft was making decent gains after Reuters reported that the firm has begun drawing up a "shortlist" for external candidates to replace Chief Executive Officer Steve Ballmer. The article said that the company has around five people in mind, including Ford frontman Alan Mulally and former Nokia chief Stephen Elop.
Offshore contract driller Ensco boosted its quarterly dividend pay-out by 50% to 75 cents.
Media group Fox declined after saying profit from continuing operations fell to 33 cents a share from 95 cents a year earlier, missing analysts' estimates.
Newmont Mining advanced as the price of gold rose for the first time in a week.
Shares of iconic fashion chain Polo Ralph Lauren rose after the fashion group upped the lower end of its annual revenue growth target.
Meanwhile, rival Abercrombie&Fitch dropped after unveiling lower-than-expected sales figures, as teens held back their spending on clothing.
On the Nasdaq, social-media peers Facebook, Zynga and LinkedIn were providing a drag after the news that Twitter had raised the price of its initial public offering ahead of its stock-market debut this week.
Electric car maker Tesla slumped after saying it delivered about 5,500 of its Model S vehicles in the third quarter.
Tech titan Apple was also weighing on the Nasdaq following a solid 8% gain over the past month.
S&P 500 - Risers
Frontier Communications Co. (FTR) $4.72 +5.47%
eBay Inc. (EBAY) $53.28 +4.31%
Microsoft Corp. (MSFT) $38.18 +4.20%
Citrix Systems Inc. (CTXS) $59.73 +4.11%
Costco Wholesale Corp. (COST) $124.07 +3.28%
ConAgra Foods Inc. (CAG) $32.56 +2.88%
Archer-Daniels-Midland Co. (ADM) $41.98 +2.72%
Unum Group (UNM) $32.58 +2.58%
GameStop Corp. (GME) $56.56 +2.28%
Express Scripts Holding Co (ESRX) $64.86 +2.21%
S&P 500 - Fallers
Tenet Healthcare Corp. (THC) $44.00 -8.83%
Regeneron Pharmaceuticals Inc. (REGN) $288.27 -4.65%
Corning Inc. (GLW) $16.50 -4.40%
Vertex Pharmaceuticals Inc. (VRTX) $62.60 -4.25%
Fossil Group Inc (FOSL) $128.46 -4.15%
Celgene Corp. (CELG) $144.49 -4.15%
Sears Holdings Corp. (SHLD) $57.80 -4.05%
International Paper Co. (IP) $43.57 -3.90%
International Game Technology (IGT) $18.78 -3.84%
CF Industries Holdings Inc. (CF) $209.50 -3.74%
Dow Jones I.A - Risers
Microsoft Corp. (MSFT) $38.18 +4.20%
Nike Inc. (NKE) $77.20 +1.09%
Cisco Systems Inc. (CSCO) $23.28 +0.93%
Intel Corp. (INTC) $24.25 +0.89%
Visa Inc. (V) $197.37 +0.48%
Chevron Corp. (CVX) $118.45 +0.30%
Boeing Co. (BA) $133.09 +0.22%
Caterpillar Inc. (CAT) $84.05 +0.19%
Procter & Gamble Co. (PG) $81.43 +0.12%
Wal-Mart Stores Inc. (WMT) $77.42 +0.12%
Dow Jones I.A - Fallers
AT&T Inc. (T) $35.53 -2.52%
Verizon Communications Inc. (VZ) $50.10 -1.92%
International Business Machines Corp. (IBM) $176.90 -1.87%
Pfizer Inc. (PFE) $31.00 -0.83%
Merck & Co. Inc. (MRK) $45.36 -0.79%
Goldman Sachs Group Inc. (GS) $161.95 -0.74%
Home Depot Inc. (HD) $76.65 -0.45%
United Technologies Corp. (UTX) $107.68 -0.28%
Johnson & Johnson (JNJ) $92.81 -0.24%
JP Morgan Chase & Co. (JPM) $51.95 -0.17%
Nasdaq 100 - Risers
Liberty Global plc Series A (LBTYA) $80.98 +6.51%
eBay Inc. (EBAY) $53.28 +4.31%
Microsoft Corp. (MSFT) $38.18 +4.20%
Citrix Systems Inc. (CTXS) $59.73 +4.11%
Costco Wholesale Corp. (COST) $124.07 +3.28%
Express Scripts Holding Co (ESRX) $64.86 +2.21%
Symantec Corp. (SYMC) $23.13 +1.98%
F5 Networks Inc. (FFIV) $81.20 +1.83%
Check Point Software Technologies Ltd. (CHKP) $60.11 +1.61%
Equinix Inc. (EQIX) $163.26 +1.23%
Nasdaq 100 - Fallers
Tesla Motors Inc (TSLA) $151.16 -14.51%
Verisk Analytics Inc. (VRSK) $62.00 -8.55%
Vimpelcom Ltd Ads (VIP) $13.50 -5.79%
Regeneron Pharmaceuticals Inc. (REGN) $288.27 -4.65%
Vertex Pharmaceuticals Inc. (VRTX) $62.60 -4.25%
Green Mountain Coffee Roasters Inc. (GMCR) $59.89 -4.16%
Fossil Group Inc (FOSL) $128.46 -4.15%
Celgene Corp. (CELG) $144.49 -4.15%
Sears Holdings Corp. (SHLD) $57.80 -4.05%
Gilead Sciences Inc. (GILD) $67.36 -3.13%
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| Newspaper Round Up | ||||||||||||
| Thursday newspaper round-up: Banks, Twitter, Africa
One hundred of the world's largest banks could be dismantled or taken over by more successful rivals within the next couple of years, according to a report by McKinsey & Co.. About a fifth of the world's top 500 banks are at risk of becoming a takeover target due to their underperformance and inability to adapt to market conditions in the wake of the financial crisis. In its closely followed annual report on the banking industry, the firm's consultants said it only thought 10 banks would be able to make the transition from the also-rans to join an emerging group of 90 global financial leaders, The Times reports.
After at least two months in secret talks, eight weeks of generating headlines and 10 days of meeting investors in eight US cities, Twitter ended its journey to becoming a public company back where it started: pricing its shares at $26 each. Before Twitter announced its plans to go public at the start of September, shares were priced at $26 on the private market, giving it an equity value of $18bn, the Financial Times reports.
Britain must take China's lead and invest in Africa to boost British business, a government minister has said. Justine Greening, the International Development Secretary, signalled a move towards trade with countries that have traditionally been the beneficiaries of UK aid. Yesterday, she gave British businesses including JCB, the construction company, SABMiller, the brewer, and Mott MacDonald, the design consultancy, a guided tour of Tanzania to encourage them to invest in the poverty-stricken but gas-rich country, The Times says.
Six financial institutions face a record fine of at least £1.3bn for rigging interest rates, it emerged yesterday. Barclays, Royal Bank of Scotland and the world's biggest interdealer broker ICAP, are among those in line for a penalty from EU antitrust regulators. The fines, likely to be the biggest so far handed out by Brussels, relate to the benchmark 'Libor' interest rate for the Japanese yen, The Daily Mail reports.
Swiss pharmaceuticals giant Novartis aims to slash more than 440 jobs in Britain, blaming industry-wide difficulties. Novartis is considering closing its manufacturing site in Horsham, West Sussex, which would lead to the loss of 371 jobs, the company told AFP in an email, confirming a report by the FierceBiotech website. The closure was needed as Novartis attempts to adapt to "a challenging healthcare marketplace", it said, stressing that the decision was still subject to consultations with employees and final approval by its UK board, The Daily Telegraph writes.
The economy is cooking with gas and the claimant-count measure of unemployment proves it. That has been what government supporters have been saying in recent months as the dole queues have shrunk. Yet since the new regime for claiming benefits was introduced last October the number of adverse decisions is running at almost two and a half times as high as in the decade 2000-2010. Ministers say that they are providing help as well as penalties, and that those coming off the count are finding jobs. This seems unlikely. Demand for labour remains weak, The Guardian says.
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Wednesday 23 October 2013
Evening Euro Markets Bulletin.
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London close: Stocks pull back from five-month high
- Miners, banks weigh on Footsie
- Money-market rates spike in China
- RSA up on bid speculation
Market Movers
techMARK 2,624.47 -0.41%
FTSE 100 6,674.48 -0.32%
FTSE 250 15,494.97 -0.11%
The FTSE 100 finished in negative territory for the first time in 10 trading sessions on Wednesday as traders took profits after the index hit a five-month high on the previous day.
Concerns over the economic outlook in China and weakness in the heavyweight mining and banking sectors weighed on London’s benchmark index today, which finished down 21.18 points at 6,674.48. The FTSE 100 was pulling back after hitting its highest closing levels since May 28th on Tuesday.
The bullish mood was dampened today by concerns over the Chinese economy after the news that debt write-offs at China’s biggest lenders had tripled in the first half. Meanwhile, the People’s Bank of China refrained from adding liquidity to the market through new reverse repurchase operations which led to a sharp increase in the country’s benchmark money-market rate.
Chief Market Analyst Michael Hewson from CMC Markets said that the reports have prompted “concerns that a fiscal tightening could well see a slowdown in the recent recovery in the Chinese economy”.
However, he said: “In reality we have been due a pullback for some time now given the recent run up, and given the fact that a lot of this week’s earnings reports have shown some worrying signs of weakness.”
Miners and banks fall, while RSA jumps
Mining stocks including Antofagasta and Anglo American were out of favour on concerns over China in addition to gloomy results from US bellwether Caterpillar, which makes heavy machinery for the mining and ground-moving industries. The firm disappointed Wall Street forecasts with its full-year guidance owing to weak mining orders, saying that “significant risks and uncertainties” could temper global economic growth next year.
Banks all over Europe were lower after the European Central Bank said it would start to review the balance sheets of 130 institutions across the continent. RBS, Barclays, Lloyds, HSBC and Standard Chartered were all registering losses in London.
Insurance firm RSA was a high riser on speculation that the firm could be the target of a takeover bid. Reuters cited traders as touting Italian group Generali, Swiss firm Zurich Financial and UK peer Aviva as potential bidders.
Chip designer ARM Holdings fell for the second straight day as investors gave a cool reaction to its third-quarter results. JPMorgan Cazenove said this morning that it sees "no reason to be building positions at this time and would take profits in the short-term."
A number of stocks were also trading in the red after going ex-dividend, including Smiths Group, BAE System, Rolls-Royce, John Menzies, Senior, William Hill, Rank Group, Barratt Developments and JD Wetherspoon.
Banknote printer and ID services firm De La Rue was a big mover with shares sinking after the company warned that it would miss its full-year profit target by £10m owing to "challenging trading conditions".
Drugs group GlaxoSmithKline beat earnings growth expectations in the third quarter by cutting back office and drug research and development costs were amplified by a lower tax rate. However, shares fell after revenue growth of 1% to £6.51bn missed forecacts.
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| FTSE 100 - Risers RSA Insurance Group (RSA) 127.00p +2.50% Persimmon (PSN) 1,256.00p +2.36% United Utilities Group (UU.) 716.50p +1.63% International Consolidated Airlines Group SA (CDI) (IAG) 364.80p +1.62% ITV (ITV) 195.00p +1.51% Hargreaves Lansdown (HL.) 1,171.00p +1.47% Legal & General Group (LGEN) 213.00p +1.43% Babcock International Group (BAB) 1,260.00p +1.37% Travis Perkins (TPK) 1,805.00p +1.29% Shire Plc (SHP) 2,525.00p +1.28% FTSE 100 - Fallers ARM Holdings (ARM) 953.50p -5.03% Antofagasta (ANTO) 865.50p -4.26% Smiths Group (SMIN) 1,397.00p -3.99% Anglo American (AAL) 1,495.00p -3.92% Royal Bank of Scotland Group (RBS) 352.10p -2.73% GlaxoSmithKline (GSK) 1,570.50p -1.91% Sage Group (SGE) 327.00p -1.83% CRH (CRH) 1,517.00p -1.81% Barclays (BARC) 268.20p -1.61% Standard Chartered (STAN) 1,500.00p -1.45% FTSE 250 - Risers Pace (PIC) 323.80p +11.66% Laird (LRD) 243.90p +8.06% IP Group (IPO) 149.00p +5.23% Home Retail Group (HOME) 192.10p +4.23% AL Noor Hospitals Group (ANH) 918.00p +3.73% Supergroup (SGP) 1,186.00p +3.31% Dixons Retail (DXNS) 48.20p +3.26% BBA Aviation (BBA) 336.60p +2.97% BTG (BTG) 407.90p +2.85% Kenmare Resources (KMR) 22.39p +2.85% FTSE 250 - Fallers De La Rue (DLAR) 885.50p -9.73% International Personal Finance (IPF) 623.00p -6.81% Telecity Group (TCY) 779.50p -5.74% Essar Energy (ESSR) 120.20p -5.43% Ferrexpo (FXPO) 184.70p -4.74% Evraz (EVR) 128.40p -4.32% Kazakhmys (KAZ) 251.40p -4.05% Centamin (DI) (CEY) 49.76p -4.03% Premier Oil (PMO) 328.50p -3.38% AZ Electronic Materials SA (DI) (AZEM) 286.90p -3.07% | ||||||||||||
| Europe Market Report | ||||||||||||
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Europe close: Chinese banking fears dampen market
- China banking sector concerns
- Berlusconi to stand trial over bribery claims
- ECB bank stress tests
- BoE meeting minutes rate hikes could come earlier
- Spain exits two-year recession
FTSE 100: -0.32%
DAX: -0.31%
CAC 40: -0.81%
FTSE MIB: -2.38%
IBEX 35: -1.84%
Stoxx 600: -0.62%
European stocks fell after a report showed debt write-offs at China’s biggest lenders tripled in the first half, reigniting fears over the banking sector in the world’s second largest economy.
Industrial & Commercial Bank of China and its four largest rivals wrote off 22.1bn yuan of debt that couldn’t be collected, compared to 7.65bn yuan a year earlier, the report revealed.
It raised concerns over China’s shadow banking system and whether the People’s Bank of China will need to raise interest rates in order to fix the problem.
“If we do see a tightening of monetary policy from the PBOC, it could choke off the recovery being seen in the world’s second largest economy, which in turn would impact growth globally,” according to Alpari UK Market Analyst, Craig Erlam.
Berlusconi to stand trial
Italy’s former Prime Minister Silvio Berlusconi has been ordered to stand trial for allegedly bribing a senator.
He is accused of paying left-wing senator Sergio De Gregorio €3m to defect to his party in 2006 and help bring down the government.
Berlusconi has been entangled in a number of trials including for tax evasion.
His latest trial is scheduled to start in February.
ECB stress tests, BoE meeting minutes
The European Central Bank has applied an 8% capital buffer to 124 banks as part of its upcoming stress tests.
The Eurozone’s top banks will undergo a comprehensive batch of tests next year in an effort to build confidence in the sector.
The ECB is looking for risks in banks’ balance sheets before taking over supervision of lenders from November 2014 as part of a European banking union.
In the UK, meeting minutes from the Bank of England (BoE) showed the Monetary Policy Committee voted unanimously last month to keep interest rates on hold and saw little need for more stimulus.
Committee members acknowledged a slightly faster-than-expected fall in unemployment as the recovery strengthened quicker than hoped. However, views diverged over how fast productivity and jobs would pick up.
"This faster-than-expected reduction in unemployment may result in the implied timing of the MPC’s first rate hike being brought forward from the second half of 2016,” according to Investec.
Also in the UK today, the British Bankers’ Association revealed loans for house purchases rose by 42,990 in September from 38,228 the prior month, beating the consensus estimate for a rise to 39,500 loans.
In Spain, gross domestic product expanded 0.1% in the third quarter, compared to the previous quarter when it shrank 0.1%, breaking away from a two-year recession.
Spain is exiting its second recession since 2008 thanks to growth in foreign investments of the nation’s bond and stock markets.
Orange, GSK
Orange declined after the French telecommunications company posted a 7.7% fall in third-quarter earnings due to drop in sales.
GlaxoSmithKline slumped after Sky News reported that the drugmaker will reveal a fall in sales in China when it reports its third-quarter results later today.
STMicroelectronics NV tumbled after the European semiconductor maker reported a $142m quarterly net loss.
International Consolidated Airlines rose after yesterday saying its Spanish carrier Iberia will return to profit next year.
Telecity Group declined after Bank of America reiterated an ‘underperform’ rating for the data-centre operator, saying the company has little opportunity to increase prices due to new competitors and a weak market.
Norsk Hydro advanced after the European aluminium producer posted third quarter earnings that beat analysts' expectations.
Brent crude slips
Brent crude futures fell $1.317 to $108.540 per barrel on the ICE.
The euro rose slightly by 0.04% to $1.3787.
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| US Market Report | ||||||||||||
US open: Investors take profits after mixed corporate earnings
- S&P 500 pulls back from record high
- Caterpillar drops as guidance disappoints
- Boeing beat forecasts for eighth straight quarter
Dow Jones: -0.48%
Nasdaq: -0.88%
S&P 500: -0.61%
US markets slipped on Wednesday as a raft of mixed corporate earnings gave investors an excuse to take profits following a strong run in recent sessions.
The S&P 500 was registering small losses in morning trading, pulling back after hitting another record close of 1,754.67 the night before following five consecutive days of gains. Stocks have risen sharply over the past week as hopes over a continuation of Federal Reserve monetary stimulus were sparked yesterday after a disappointing September jobs report.
According to data compiled by Bloomberg, the recent run in stock markets has pushed the average price-to-earnings multiple of the S&P 500 to 15.9, the highest since late-2009.
The bullish mood was dampened today by concerns over the Chinese economy after a report said that debt write-offs at China’s biggest lenders had tripled in the first half. Meanwhile, the People’s Bank of China refrained from adding liquidity to the market through new reverse repurchase operations which led to a sharp increase in the country’s benchmark money market rate.
Market Analyst Craig Erlam from Alpari said it has reignited fears that the People’s Bank of China could be looking to raise interest rates which could “choke off the recovery”. He said: “Given that the global recovery is still fragile, with the US repeatedly shooting itself in the foot and the Eurozone constantly on the verge of another crisis, investors are very concerned about what kind of an impact this latest Chinese issue could have."
Economic data comes in mixed
US mortgage applications fell 0.6% in the week to October 18th, compared to a rise of 0.3% the previous week, according to data from the Mortgage Bankers Association.
Import prices increased by 0.2% month-on-month in September, following a 0.2% gain the month before and in line with consensus forecasts.
The house price index rose 0.3% in August, below the 1% gain the month before and under the 0.8% rise expected.
Caterpillar drops after cutting forecasts
Industrial machinery manufacturer Caterpillar was a heavy faller today after cutting its full-year guidance for revenue and profit. The company reported a 44% drop in earnings in the third quarter as weakness in the mining sector hit demand for its products.
Chipmaker Broadcom plunged despite beating analysts’ forecasts with its third-quarter results, as it estimated fourth-quarter revenue that fell short of expectations.
Networking equipment maker Juniper Networks fell sharply after saying that sales in its fourth quarter will be between $1.2bn and $1.23bn, disappointing analysts who were expecting $1.23bn.
Aircraft manufacturer Boeing jumped after raising its full-year earnings forecast following a strong third quarter. The company delivered 170 commercial plans during the period, up from 149 the year before, helping it to top earnings expectation for the eighth quarter in a row.
College chain Apollo rocketed after adjusted fourth-quarter profits came in at 55 cents, well ahead of the 25 cents estimate.
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| Broker Tips | ||||||||||||
Abcam: Numis downgrades to add with a target of 570p.
ARM Holdings: Deutsche Bank increases target from 1080p to 1130p and maintains a buy recommendation. JP Morgan raises target from 625p to 750p and leaves its neutral rating unaltered. Societe Generale ups target from 640p to 680p, but still recommends selling. UBS increases target from 970p to 1050p, while downgrading from buy to neutral. Exane ups target from 940p to 960p and stays with its neutral rating.
BHP Billiton: Canaccord Genuity ups target from 2025p to 2065p retaining a hold recommendation. Morgan Stanley raises target from 2090p to 2190p reiterating its overweight rating.
Britvic: UBS takes target from 500p to 575p maintaining a neutral rating.
Centaur Media: Westhouse Securities moves target from 54p to 59p retaining an add rating.
Cineworld: JP Morgan shifts target from 428p to 425p and keeps an overweight rating.
Computacenter: Panmure Gordon ups target from 504p to 548p maintaining a hold recommendation.
De La Rue: Panmure Gordon reduces target from 964p to 786p and downgrades from hold to sell. Investec cuts target from 1070p to 885p downgrading from add to hold.
EnQuest: Westhouse Securities ups target from 130p to 138p and stays with its neutral rating.
Faroe Petroleum: Liberum Capital cuts target from 183p to 175p, while retaining a buy recommendation.
GKN: Societe Generale moves target from 425p to 430p and retains a buy recommendation. Exane moves target from 390p to 400p and keeps a neutral rating.
International Consolidated Airlines Group: RBC Capital raises target from 360p to 400p and keeps an outperform rating.
International Personal Finance: Canaccord Genuity downgrades from buy to hold with a target of 700p.
Kenmare Resources: Canaccord Genuity lowers target from 27p to 25p, while its buy recommendation remains unchanged.
Ocado: Exane downgrades from neutral to underperform, while leaving its target unchanged.
Petropavlovsk: Westhouse Securities lowers target from 130p to 120p, while its buy recommendation remains unchanged. JP Morgan moves target from 70p to 80p and reiterates an underweight rating. RBC Capital cuts target from 105p to 85p retaining an underperform rating.
Reckitt Benckiser: Societe Generale raises target from 4000p to 4750p and upgrades from sell to hold. Exane shifts target from 44p to 45p retaining an underperform rating.
Regus: RBC Capital increases target from 200p to 250p maintaining an outperform rating.
Renold: N+1 Singer shifts target from 44p to 53p and keeps a buy recommendation.
RM: Numis downgrades to add with a target of 140p.
Smiths News: N+1 Singer ups target from 185p to 200p, while downgrading to hold.
Spectris: UBS raises target from 2000p to 2400p reiterating a neutral rating.
Telecity Group: JP Morgan cuts target from 1200p to 1100p and maintains an overweight rating.
UBM: Liberum Capital reduces target from 890p to 840p staying with its buy recommendation. Nomura cuts target from 860p to 800p, while reiterating its buy recommendation. JP Morgan lowers target from 830p to 815p, while upgrading to overweight. Exane cuts target to 820p and maintains an outperform rating.
Vodafone Group: Credit Suisse increases target from 195p to 245p and reiterates an outperform rating.
Whitbread: Deutsche Bank raises target from 3350p to 3485p, while downgrading to hold. Credit Suisse raises target from 3530p to 3900p and retains an outperform rating
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World Daily Markets Bulletin.
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| US Market | ||||||||||||
The
major U.S. index futures are pointing to a lower opening on Wednesday,
with sentiment reflecting the return of risk aversion as economic
concerns have returned to haunt traders. Earnings news of the day has
been mixed once again, with Boeing reporting forecast beating results,
while United Technologies' results have been downbeat. With not many
first-tier economic data to drive the markets, traders may prefer to
take profit on their recent gains, as they seek better visibility into
the economic outlook.
U.S. stocks advanced on Tuesday, thanks to soft payrolls data that brightened the possibility of the Fed delaying the withdrawal of stimulus. The major averages opened higher, with The Dow Industrials and the S&P 500 Index hovering above the unchanged line throughout the session, while the NASDAQ Composite Index experienced some volatility after a firmer start and moved back and forth across the unchanged line before closing modestly higher. The Dow Industrials added 75.46 points or 0.49 percent before closing at 15,468 and the S&P 500 Index closed 10.01 points or 0.57 percent higher at 1,755, while the NASDAQ Composite Index closed at 3,930, up 9.52 points or 0.24 percent. Nineteen of the thirty Dow components closed higher, while the remaining eleven stocks retreated. Disney, Caterpillar, Procter & Gamble and Wal-Mart were among the biggest gainers of the session, while United Technologies , JP Morgan Chase , Microsoft and Cisco Systems came under selling pressure. Airline, biotechnology, utility, resource and housing stocks advanced strongly in the session. On the economic front, the September non-farm payrolls report showed that the U.S. economy added a less than expected 148,000 jobs in September. The private sector added merely 126,000 jobs, with much of the increase coming from the construction sector. The manufacturing sector saw only a modest increase in jobs, while the financial sector saw job losses. The unemployment rate edged down to a 5-year low of 7.2 percent, while the participation rate stayed at a 35-year low of 63.2 percent. The Commerce Department reported that construction spending rose 0.6 percent month-over-month in August. The spending growth for July was upwardly revised by 0.8 percentage points to 1.4 percent. Residential construction spending climbed 1.2 percent, while non-residential construction spending was up a much more modest 0.1 percent. At the same time, public construction spending rose 0.4 percent. The Dow Industrials is slowly and steadily approaching its all time high, supported by the removal of the overhang surrounding the debt ceiling, although temporarily. If earnings remain supportive, the index could climb back towards a resistance around 15,544. Above this level, the index also has resistance around the 15,622 level. Downside support for the index lies around the 15,417, 15,328 and 15,230 levels. | ||||||||||||
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Import prices
in the U.S. rose in line with economist estimates in the month of
September, according to a report released by the Labor Department, while
export prices showed an unexpected increase for the month.
The report said import prices rose by 0.2 percent in September, matching the revised increase reported for August as well as economist estimates. Additionally, the Labor Department said export prices rose by 0.3 percent in September after falling by 0.5 percent in the previous month. Economists had expected export prices to edge down by 0.1 percent. The Federal House Finance Agency is due to release its house price index for August at 9 am ET. The consensus estimates call for a 0.8 percent month-over-month increase in house prices for the month. The Energy Information Administration will release its petroleum status report for the week ended October 18th at 10:30 am ET. | ||||||||||||
| Stocks in Focus | ||||||||||||
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Amgen
reported third quarter adjusted earnings of $1.94 per share, up 16
percent year-over-year. Revenues climbed 10 percent to $4.7 billion. For
2013, the company expects adjusted earnings of $7.35-$7.45 per share on
revenues of $18.3 billion to $18.5 billion. The results exceeded
estimates and the guidance was upbeat.
Juniper Networks reported third quarter non-GAAP earnings of 33 cents per share, up from 29 cents per share last year. Revenues rose 3 percent to $1.19 billion. For the fourth quarter, the company expects non-GAAP earnings of 35-37 cents per share on revenues of $1.20 billion to $1.23 billion. The results exceeded estimates, but the guidance was lukewarm. Broadcom reported better than expected third quarter results, while its fourth quarter revenue guidance was soft. Waste Connections' third quarter results were below expectations. Apollo Group reported better than expected fourth quarter results. Insurer ACE's third quarter operating earnings were ahead of estimates. The company also raised its full year operating earnings guidance. Boeing reported third quarter profit that improved from the previous year period. Revenue rose 11 percent and came in above the consensus estimate. The company also raised its full year earnings forecast and confirmed its 2013 revenue guidance. Eli Lilly's third quarter results topped Wall Street view. The company backed its full-year revenue forecast and tightened its earnings guidance range. Corning entered into a series of strategic and financial agreements with Samsung Display and will obtain full ownership of Samsung Corning Precision Materials. The company's board also authorized an additional $2 billion of share repurchases. Corning also announced preliminary third-quarter 2013 results. Caterpillar reported third quarter earnings and revenues declined from the year ago period and missed analysts' expectations. The company also lowered its 2013 guidance and stated that it is holding outlook for 2014 sales and revenues flat with 2013 in a plus or minus 5 percent range. Altera's third quarter earnings were ahead of expectations, while its revenues missed estimates. The company's fourth quarter revenue guidance surrounded the consensus estimate. RF Micro Devices reported better than expected third quarter results and guided fourth quarter earnings above the consensus estimate. The company's revenue guidance was weak. Celestica's third quarter results were better than expected and its fourth quarter earnings guidance was in line, while its revenue guidance trailed expectations. Cree reported in line first quarter earnings, but its revenues were slightly shy of estimates. The company's second quarter earnings guidance was weak, while revenues are indicated to come in line. Unisys reported third quarter non-GAAP earnings of 25 cents per share compared to 85 cents per share last year. Revenues fell 10 percent to $792 million. The results trailed expectations. STMicroelectronics reported a third quarter non-GAAP loss of 3 cents per share, flat with last year. Net revenues were nearly flat at $2.01 billion. The results missed expectations. The company said it expects sequentially flat revenue performance for the fourth quarter, while it expects a return to positive cash flow generation as result of the wind down of ST-Ericsson. AmSurg reported below consensus earnings for its third quarter, while its revenues were ahead of expectations. The company's fourth quarter and full year guidance was in line with estimates. Fulton Financial's third quarter earnings of 21 cents per share were flat with the year-ago while coming in ahead of the 20 cents per share consensus estimate. Crown Castle said it has priced its public offering of 36 million shares of its common stock at $74 per share and 8.5 million shares of its 4.50 percent mandatory convertible preferred stock series A at $100 per share. Akamai Technologies , AT&T, Cheesecake Factory , Citrix Systems , E TRADE , Everest Re , F5 Networks , Knight Transportation , Logitech , O'Reilly , Swift Transportation , Symantec , TripAdvisor and Triquint Semiconductor are among the companies due to release their quarterly results after the close of trading. | ||||||||||||
| European Market | ||||||||||||
European stocks opened lower and have seen further weakness since then.
In corporate news, aluminum maker Norsk Hydro reversed to a profit in its third quarter, thanks to a decline in costs. France's Peugeot Citroen said its third quarter revenues fell 3.7 percent, hurt by weakness in Europe and production bottlenecks. French telecommunications giant Orange reported a decline in earnings and revenues for its third quarter. Beer maker Heineken, which has huge exposure to Europe, reported a marginal rise in sales, while volumes decline. The company also lowered its earnings guidance for the full year. On the economic front, the minutes of the October monetary policy meeting of the Bank of England showed that committee members voted unanimously to maintain rates at 0.50 percent and the asset purchase program at 375 billion pounds. Data released from Spain showed that the country exited a 2-year long recession in the third quarter. | ||||||||||||
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| Most Asian markets retreated, led by the Japanese markets, as the dollar weakened
and the soft U.S. economic data brought back fears concerning a setback
to the economic recovery in the world's largest economy. Japan's Nikkei 225 average opened higher and maintained its slim gains until the mid-session before pulling back sharply in the afternoon. The index retreated sharply over the course of the afternoon and ended down 287.20 points or 1.95 percent at 14,426. A majority of the stocks declined, as the yen strengthened to a 2-week high against the dollar. Nitto Denko, JTEKT, Mitsui Engineering, Nippon Soda and Amada were among the biggest decliners of the session. Australia's All Ordinaries hovered well above the unchanged line for the better part of the morning session before pulling back in the afternoon. The index closed 14.40 points or 0.27 percent lower at 5,357. Most sectors retreated, with the exception of IT and material stocks. Hong Kong's Hang Seng Index ended at 23,000, down 316.04 points or 1.36 percent, and China's Shanghai Composite closed 27.54 points or 1.25 percent lower at 2,183. On the economic front, a report released by the Conference Board showed that its leading economic indicators index for Australia declined 0.2 percent month-over-month in August. A report released by the Australian Bureau of Statistics showed that consumer prices rose 1.2 percent sequentially in the third quarter, while economists expected a 0.8 percent increase. At the same time, the Reserve Bank of Australia's trimmed mean measure of inflation was at 0.7 percent, higher than the 0.6 percent rate expected by economists. | ||||||||||||
| Currency and Commodities Markets | ||||||||||||
In the first day of trading as the front month contract, Crude oil
futures for December delivery are trading down $1.65 at $96.65 a
barrel. The November futures expired at $97.80 a barrel, down $1.42, on
Tuesday.
The previous session's retreat came amid the release of the inventory report, which showed that Crude oil inventories rose by 4 million barrels to 374.5 million barrels in the week ended October 11th. Stockpiles were above the upper range for this time of the year. Meanwhile, gasoline inventories fell by 2.6 million barrels and yet were near the top of the average range. Distillate stockpiles also declined, dropping by 1.8 million barrels and remained near the lower limit of the average range. Refinery capacity utilization averaged 87.9 percent over the four weeks ended October 11th compared to 89.4 percent over the four weeks ended October 4th. An ounce of Gold is currently at $1,333, down $9.40 from the previous session's close of $1,342.60 an ounce. On Tuesday, Gold added $26.80. Among currencies, the U.S. dollar is trading at 97.45 yen compared to the 98.14 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.3759 compared to yesterday's $1.3781. | ||||||||||||
