Mixed start; African Barrick jumps
Market Movers
techMARK 2,122.95 -0.06%
FTSE 100 5,833.67 +0.01%
FTSE 250 11,504.08 +0.05%
African Barrick up as China Gold shows interest
Markets continue to sift through global economic data
Wen sees 'growing room for policy operation'
London's benchmark index was broadly flat on Thursday morning as
investors continue to digest a raft of economic data that has been
released over the past few days.
In the UK, minutes from the
latest Monetary Policy Committee meeting showed that members voted
unanimously this month in favour of maintaining the Bank of England Bank
Rate at 0.5% and the asset purchase programme at £375bn.
Unemployment
in the UK fell from 8.1% to 8.0% in July, versus economists'
expectations of no change. Market analyst Michael Hewson from CMC
Markets said this morning that the figures "raise more questions than
answers" with respect to the UK economy: "How can it be that
unemployment is falling while the economy is in the grip of three
successive quarters of economic contraction, and it is this apparent
contradiction that is causing a lot of debate."
Meanwhile, US data
out yesterday afternoon came in mixed, with industrial output improving
and New York manufacturing falling. Jobless claims and the Philly Fed
index are due for release later today.
Also in focus early on was the news of slowing inward investment in China
in July. Foreign direct investment in China fell 8.7% to a two-year low
of $7.58bn last month. Yesterday, Chinese Premier Wen Jiabao said that
he sees "growing room for monetary policy operation" as inflation slows
down.
African Barrick Gold (ABG) jumped after announcing its holding company ,
Barrick Gold, is in talks with China National Gold Group about the
possibility of selling its stake in the London-listed miner to China's
largest gold producer. Should China Gold buy up more than 30% of the
voting interest in ABG from Barrick Gold, it would then be required to
make an offer for the whole of ABG's issued ordinary share capital.
Pharmaceuticals group Hikma
was a high riser after first-half revenues rose 34.8%, helped by
contributions from recent acquisitions. Organic revenue growth was still
a solid 7.6%.
Software specialist Micro Focus edged
higher after revealing news of a 50p-a-share cash return and share
consolidation. The firm also said that first-quarter financials were in
line with expectations, with adjusted earnings flat year-on-year on a
constant currency basis.
Engineering support services firm Babcock was in the red after Espirito Santo downgraded its rating on the stock to 'neutral', while natural gas giant BG Group fell after Morgan Stanley cut its rating to 'equal weight'.
Publishing group Reed Elsevier
was in demand after announcing the appointment of Duncan Palmer as its
Chief Financial Officer, having lured him away from US company Owens
Corning. Palmer will take over from Mark Armour, who is retiring at the
end of the year.
FTSE 100 - Risers
Weir Group (WEIR) 1,747.00p +2.16%
Polymetal International (POLY) 920.00p +1.55%
Evraz (EVR) 266.20p +1.45%
IMI (IMI) 896.50p +1.36%
Vedanta Resources (VED) 931.00p +1.25%
Kazakhmys (KAZ) 722.00p +0.98%
Randgold Resources Ltd. (RRS) 6,180.00p +0.82%
Capital Shopping Centres Group (CSCG) 332.80p +0.82%
ITV (ITV) 85.85p +0.76%
Tesco (TSCO) 335.10p +0.75%
FTSE 100 - Fallers
Admiral Group (ADM) 1,162.00p -1.69%
Carnival (CCL) 2,158.00p -1.51%
Eurasian Natural Resources Corp. (ENRC) 374.80p -1.26%
BG Group (BG.) 1,305.50p -1.17%
International Consolidated Airlines Group SA (CDI) (IAG) 146.00p -1.08%
ICAP (IAP) 330.20p -0.90%
Standard Life (SL.) 273.00p -0.84%
ARM Holdings (ARM) 579.50p -0.77%
Prudential (PRU) 817.00p -0.73%
Vodafone Group (VOD) 187.40p -0.72%
FTSE 250 - Risers
African Barrick Gold (ABG) 432.30p +9.83%
Hikma Pharmaceuticals (HIK) 767.00p +5.79%
Avocet Mining (AVM) 92.10p +4.24%
Savills (SVS) 389.20p +2.99%
NMC Health (NMC) 197.00p +2.18%
New World Resources A Shares (NWR) 294.00p +2.05%
Petra Diamonds Ltd.(DI) (PDL) 104.00p +1.96%
Petropavlovsk (POG) 439.80p +1.62%
Centamin (DI) (CEY) 70.50p +1.44%
Jupiter Fund Management (JUP) 218.90p +1.39%
FTSE 250 - Fallers
Talvivaara Mining Company (TALV) 134.10p -4.42%
Balfour Beatty (BBY) 286.80p -3.14%
CSR (CSR) 322.90p -3.00%
Salamander Energy (SMDR) 208.00p -2.30%
Bumi (BUMI) 354.10p -1.88%
JD Sports Fashion (JD.) 664.92p -1.86%
Galliford Try (GFRD) 626.50p -1.80%
Wetherspoon (J.D.) (JDW) 465.10p -1.75%
Redrow (RDW) 135.90p -1.74%
Home Retail Group (HOME) 87.90p -1.62%
| FX round-up |
 |
| FTSE 100 | Euronext | Dax perf | CAC 40 |
 |  |  |  |
|
Euro falls against dollar after economic data
The euro fell
against the dollar on Wednesday, hitting its lowest level in six weeks
after economic data from the US indicated that the Federal Reserve may
decide to further ease its monetary policy.
The single currency
dropped to $1.2284, having traded hands at $1.2324 the previous day. It
last closed below $1.23 on July 30th.
The ICE dollar
index, which measures the greenback against a basket of six major
currencies, climbed from 82.540 on Wednesday to 82.673 last night.
The WSJ dollar index, which measures the greenback against a larger collection of currencies, climbed from 71.67 to 71.79 overnight.
Meanwhile,
comments from European Economic and Monetary Affairs Commissioner Olli
Rehn have put the issue of a Spanish bailout back in the spotlight.
Speaking
on Bloomberg Television yesterday Rehn signalled that Spain's
government is considering a request for a sovereign bailout although no
decision has been made.
"The Spanish government has an open mind
on this issue, but no decision has been made," Rehn said. "We stand
ready to act if there is a request."
Against the euro, the pound bought €1.2762, compared to €1.2711 the previous evening. The British currency swapped hands for $1.5690, compared to $1.5681 on Tuesday. Elsewhere the dollar rose to trade hands at ¥78.98 comared to ¥78.74 the prior evening.
UK Event Calendar
INTERIMS
BATM Advanced Communications Ltd., Cineworld Group, Hikma Pharmaceuticals, PV Crystalox Solar, Talvivaara Mining Company, Xaar
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Bloomberg Consumer Confidence (US) (14:45)
Building Permits (US) (13:30)
Consumer Price Index (EU) (10:00)
Continuing Claims (US) (13:30)
Harmonised Index of Consumer Prices (EU) (10:00)
Housing Starts (US) (13:30)
Initial Jobless Claims (US) (13:30)
Philadelphia Fed Index (US) (15:00)
Q2
Talvivaara Mining Company
GMS
Aegis Group, Energy Technique
IMSS
Micro Focus International
AGMS
IGas Energy, Triad Group
UK ECONOMIC ANNOUNCEMENTS
Internet Retail Sales (09:30)
Retail Sales (09:30)
FINAL DIVIDEND PAYMENT DATE
F&C Global Smaller Companies, Moss Bros Group, MS International
|
| US Market Report |
Techs and financials shine on mixed day
Dow Jones -7.36 at 13,164.78
Nasdaq +13.95 at 3,030.93
S&P 500 +1.60 at 1,405.53
Stocks ended the day mixed on Wednesday, although on the whole things were looking marginally higher at the closing bell.
Things continue to look reasonably upbeat in the technology sector, with Facebook
being 'liked' early on and gaining steadily later on after it was
revealed that Soros Fund Management, managed by legendary investor
George Soros, bought $10m-worth of shares in second quarter.
Elsewhere in the tech sector, Netflix,
the entertainment media streaming company, has announced it is to start
operating in Denmark, Finland, Norway and Sweden by the end of the
year.
Although the Dow Jones ended the day lower, it settled above the 13,100 mark for an eighth consecutive session.
The S&P 500, meanwhile, continues what appears to be a slow motion advance and is now very close to its highest level in three months.
Financial stocks were performing well, with the Financial Select Sector
SPDR fund, which keeps track of financial companies on the S&P 500,
climbing 0.3%.
Manufacturing confusion
The
Empire State manufacturing index fell to -5.9 this month, well down
from 7.4 in July. Consensus forecasts were for a more modest fall to
7.0. The Institute for Supply Management (ISM) said that its monthly
index was 49.8 in July, only slightly higher than the three-year low of
49.7 reached the month before. Any figure below 50 suggests contraction.
Industrial output increased by 0.6% in July, only slightly
ahead of the 0.5% growth expected. The US consumer price index was
unchanged in July, showing no change for the third time in four months.
The market had been expecting a 0.2% increase. The annual inflation rate
eased to 1.4% (consensus forecast: 1.5%) from 1.7%.
Companies
Clothing retailer Abercrombie & Fitch
saw its shares rise after announcing plans to increase its current
share buyback plan by 10m shares and revealing that its inventory
situation was significantly better than it had been at the end of the
second quarter.
Security National Finance shares
rocketed by more than a third after the firm released significantly
better-than-expected second quarter results. Following an increase in
second quarter profit of more than 11 times, Impac Mortgage Holdings shares almost doubled. Sales were up 33%.
Meanwhile, stationery supplier Staples
declined 15% after admitting its second quarter earnings dropped 32%
compared to the same period the previous year after a fall in
international sales. The firm lowered its full year outlook, saying
sales look set to be flat.
Weaker-than-expected results at retailer Citi Trends led to a significant drop in the share price. Canadian Solar
fell after the firm reported a loss during the second quarter after
increased sales were offset by lower prices of solar equipment and
panels.
Other markets
The
September futures contract for crude oil rose 0.96%, or $0.90, to
settle at $94.33 per barrel on the New York Mercantile Exchange.
10-year US treasuries fell by 19/32 dollars, with yields at 1.8%.
S&P 500 - Risers
Abercrombie & Fitch Co. (ANF) $35.23 +8.97%
JDS Uniphase Corp. (JDSU) $11.56 +8.24%
Sprint Nextel Corporation (S) $5.39 +8.02%
Metropcs Communications Inc. (PCS) $9.79 +6.64%
First Solar Inc. (FSLR) $21.10 +5.32%
Akamai Technologies Inc. (AKAM) $36.80 +3.84%
Starbucks Corp. (SBUX) $48.10 +3.60%
Constellation Brands Inc. Class A (STZ) $31.65 +3.16%
Urban Outfitters Inc. (URBN) $31.24 +3.03%
Fossil Inc. (FOSL) $87.12 +3.03%
S&P 500 - Fallers
Staples Inc. (SPLS) $11.50 -14.53%
Deere & Co. (DE) $75.10 -6.28%
Alpha Natural Res (ANR) $6.61 -3.36%
Sherwin-Williams Co. (SHW) $138.37 -2.12%
Duke Energy Corp. (DUK) $66.77 -2.10%
Peabody Energy Corp. (BTU) $21.85 -1.93%
Entergy Corp. (ETR) $69.87 -1.74%
Gannett Co. Inc. (GCI) $15.10 -1.63%
E*TRADE Financial Corp. (ETFC) $8.53 -1.61%
R.R. Donnelley & Sons Co. (RRD) $12.52 -1.57%
Dow Jones I.A - Risers
Bank of America Corp. (BAC) $7.87 +1.16%
Cisco Systems Inc. (CSCO) $17.35 +1.05%
American Express Co. (AXP) $56.66 +1.03%
Wal-Mart Stores Inc. (WMT) $74.45 +0.59%
Home Depot Inc. (HD) $55.00 +0.53%
Alcoa Inc. (AA) $8.73 +0.46%
Walt Disney Co. (DIS) $49.89 +0.40%
Travelers Company Inc. (TRV) $63.75 +0.33%
E.I. du Pont de Nemours and Co. (DD) $50.28 +0.28%
United Technologies Corp. (UTX) $77.99 +0.27%
Dow Jones I.A - Fallers
Boeing Co. (BA) $73.07 -1.00%
Intel Corp. (INTC) $26.27 -0.79%
Merck & Co. Inc. (MRK) $44.06 -0.79%
Chevron Corp. (CVX) $112.57 -0.66%
Johnson & Johnson (JNJ) $68.35 -0.42%
AT&T Inc. (T) $37.10 -0.40%
Hewlett-Packard Co. (HPQ) $19.29 -0.36%
McDonald's Corp. (MCD) $87.81 -0.35%
Verizon Communications Inc. (VZ) $44.19 -0.32%
Caterpillar Inc. (CAT) $87.61 -0.30%
Nasdaq 100 - Risers
Green Mountain Coffee Roasters Inc. (GMCR) $24.11 +5.51%
Akamai Technologies Inc. (AKAM) $36.80 +3.84%
Starbucks Corp. (SBUX) $48.10 +3.60%
Fossil Inc. (FOSL) $87.12 +3.03%
Electronic Arts Inc. (EA) $13.09 +2.99%
Symantec Corp. (SYMC) $17.67 +2.85%
Cerner Corp. (CERN) $73.49 +2.80%
Sears Holdings Corp. (SHLD) $56.60 +2.59%
Sandisk Corp. (SNDK) $41.56 +2.54%
Adobe Systems Inc. (ADBE) $32.91 +2.51%
Nasdaq 100 - Fallers
Staples Inc. (SPLS) $11.50 -14.53%
Dollar Tree Stores Inc. (DLTR) $50.00 -1.22%
Vodafone Group Plc ADS (VOD) $29.63 -1.13%
Micron Technology Inc. (MU) $6.49 -0.92%
Cognizant Technology Solutions Corp. (CTSH) $63.73 -0.90%
eBay Inc. (EBAY) $44.98 -0.84%
Intel Corp. (INTC) $26.27 -0.79%
Nvidia Corp. (NVDA) $14.48 -0.75%
DIRECTV (DTV) $51.53 -0.73%
Warner Chilcott Plc (WCRX) $17.42 -0.68%
|
| Thursday newspaper round-up |
StanChart, BoE, Osborne...
Standard Chartered
was attacked by one of the top lawyers in the City last night for
agreeing a quick settlement of the money-laundering allegations that
threatened to destroy the bank and warned that it could be forced to pay
out billions more before it can properly settle the scandal.
City observers with experience of Wall Street say the deal may ramp up
the appetite of the other watchdogs for greater amounts of blood, with
the more senior regulators unlikely to settle for less than Standard
Chartered paid to the DFS over allegations that it violated US laws in
$250bn worth of trades with Iran. Although the bank's shares jumped on
investor relief that the issue may be resolved quickly, experienced City
lawyers warn otherwise. [ The Independent]
A senior Bank of England
policymaker said quantitative easing was a better way of kickstarting
the economy than further interest rate cuts. On a visit to Northern
Ireland, monetary policy committee (MPC) member Paul Fisher told the
Belfast Telegraph: "If we thought [rate cuts] would add more stimulus we
would do it but asset purchase through quantitative easing is a more
powerful way of aiding the economy … but we're keeping that under
review."
His comments came as minutes of the MPC's last
meeting a fortnight ago showed that it had voted unanimously to keep its
interest rate at 0.5% and its quantitative easing (QE) programme
unchanged at £375m. Despite the unanimous vote on QE, the minutes point
to a continued split on the committee. [ The Guardian]
George Osborne
has been urged to abandon his austerity plans and boost infrastructure
spending to rescue the economy by a group of top economists who backed
his deficit cutting plans just two years ago. The revolt by the same
experts whose support for the Tory economic strategy was a pivotal
moment in the pre-election debate in 2010 will be acutely embarrassing
for the Chancellor. He is already facing calls from institutions such as
the International Monetary Fund and employers body the CBI to take
action on growth in the wake of the double-dip recession. [ The Telegraph]
Brazil’s
president Dilma Rousseff has launched a R$133bn ($65.6bn) stimulus
package to spur investment in the country’s creaking infrastructure and
shore up ailing investor confidence
in the world’s second-largest emerging market economy. In the first of
what are expected to be a series of announcements in the coming weeks,
Ms Rousseff said the government would sell concessions in nine highways
and 12 railways before moving onto other areas of infrastructure. [ FInancial Times]
A majority stake in world’s largest photography and video agency has been sold for $3.3 billion to the Carlyle Group.
Getty Images, which supplies images to media companies and advertising
groups, said that the sale would enable it to develop its operations and
invest in new technologies, such as 3-D pictures. The purchase price is
significantly lower than the $4 billion that the previous private
equity owner, Hellman & Friedman, is said to have been seeking.
However, sources familiar with the deal said that the buyout firm had
managed to double its investment in the four years since it acquired
Getty. [ The Times]
Reed Elsevier, the
Anglo-Dutch legal and scientific publisher, has picked Duncan Palmer,
chief financial officer of Owens Corning, to replace its long-serving
finance director, Mark Armour, according to people familiar with the
decision. Under pressure from investors over lacklustre growth, Reed
announced last October that Mr Armour would step down at the end of this
year. It is set to announce on Thursday that Mr Palmer will join the
company as chief financial officer designate this month and take over
from Mr Armour in November. [ Financial Times]
|
| | | |
|
No comments:
Post a Comment