BoJ action lifts miners
Market Movers
techMARK 2,133.66 +0.05%
FTSE 100 5,891.01 +0.39%
FTSE 250 11,978.61 +0.38%
Investors
are giving a tip of the hat to the Bank of Japan this morning, after
the Japanese central bank opted to beef up its quantitative easing
programme.
The news from the world's third largest economy has
lifted miners in particular, and even with the usual Wednesday glut of
stocks going ex-dividend - among them Aviva, G4S, Interserve, Melrose,
Petrofac, Premier Farnell, IG Group and Kier - the major benchmarks are
making headway.
Lonmin leads the advance
Striking workers at Lonmin's
Marikana operations are to return to work on Thursday after a
settlement was reached late on Tuesday night. The agreement includes a
signing bonus of R2,000 and an average rise in wages of between 11% and
22% for all employees falling within the "Category 3-8" bargaining
units, effective from 1st October 2012. This includes the previously
agreed 9-10% rises for these employees due to come into effect in
October 2012. It also addresses issues of promotion for some categories
of workers as well as other allowances.
Technology company Smiths Group
saw top line growth across all of its divisions last year, as revenue
broke through the £3bn barrier. Revenue for the year ended July 31st
rose 7%, or an underlying 5%, to £3,038m from £2,842m the year before,
beating the £2,978m expected by the market. Headline profit before tax
was also above market expectations, rising 7% to £554m from £517m the
year before. The median forecast from the group of analysts following
the stock was £451m. Statutory profit before tax dipped to £366m from
£398m as a result of laundry list of exceptional items.
International engineering firm AMEC
is buying a stake in a Brazilian oil and gas company as it builds its
presence in the largest deep-water market in the world. The agreement
will mean AMEC acquires a 50% stake in Kromav Engenharia from its owner
managers for $12.5m in cash. Kromav is a privately owned Brazilian
offshore oil and gas and marine engineering company based in Rio de
Janeiro.
Shopper round
Online fashion and beauty store ASOS
continued its recent barnstorming performance, boosting revenues by a
third in the last quarter. Retail sales were up 31% year-on-year, with a
15% rise in the UK and a 42% jump in international trading.
It was a different story at French Connection,
where the shares took a hammering after the group reported a first half
loss. The fashion group, which issued a profit warning in May, posted a
pre-tax loss of £6.3m in the six-month period ended July 31st 2012
compared to a profit of £0.7m in 2011. Revenue during the period fell to
£96m compared to £102.8m a year earlier.
FTSE 100 - Risers
Kazakhmys (KAZ) 764.00p +2.96%
Anglo American (AAL) 2,064.50p +2.76%
Smiths Group (SMIN) 1,065.00p +2.21%
Rexam (REX) 433.30p +2.05%
Fresnillo (FRES) 1,866.00p +2.02%
Eurasian Natural Resources Corp. (ENRC) 362.10p +1.77%
Evraz (EVR) 284.40p +1.75%
Polymetal International (POLY) 1,108.00p +1.56%
Vedanta Resources (VED) 1,092.00p +1.49%
Ashmore Group (ASHM) 339.70p +1.40%
FTSE 100 - Fallers
Aviva (AV.) 333.80p -3.22%
Imperial Tobacco Group (IMT) 2,335.00p -1.14%
British American Tobacco (BATS) 3,219.00p -0.74%
Diageo (DGE) 1,705.50p -0.73%
G4S (GFS) 265.40p -0.60%
Rolls-Royce Holdings (RR.) 859.00p -0.46%
ARM Holdings (ARM) 586.00p -0.42%
Admiral Group (ADM) 1,103.00p -0.36%
Experian (EXPN) 1,031.00p -0.29%
National Grid (NG.) 684.00p -0.22%
FTSE 250 - Risers
Lonmin (LMI) 696.50p +7.15%
Ferrexpo (FXPO) 226.80p +5.34%
Centamin (DI) (CEY) 94.25p +3.97%
Petropavlovsk (POG) 450.30p +3.49%
Talvivaara Mining Company (TALV) 176.00p +2.98%
Stobart Group Ltd. (STOB) 119.80p +2.92%
Big Yellow Group (BYG) 321.00p +2.42%
Ruspetro (RPO) 110.00p +2.33%
Hunting (HTG) 891.00p +2.24%
Aquarius Platinum Ltd. (AQP) 52.00p +2.16%
FTSE 250 - Fallers
IG Group Holdings (IGG) 452.80p -3.50%
COLT Group SA (COLT) 118.80p -2.94%
Kier Group (KIE) 1,321.00p -2.65%
Savills (SVS) 396.00p -2.51%
St. Modwen Properties (SMP) 195.70p -2.39%
Daejan Holdings (DJAN) 2,850.00p -2.23%
RPS Group (RPS) 246.90p -2.18%
Computacenter (CCC) 386.10p -2.03%
JD Sports Fashion (JD.) 705.00p -1.88%
Premier Farnell (PFL) 182.40p -1.41%
| UK Event Calendar |
 |
| FTSE 100 | Euronext | Dax perf | CAC 40 |
 |  |  |  |
|
INTERIMS
Anpario, Optimal Pay, Paragon Entertainment Ltd (DI)
INTERIM DIVIDEND PAYMENT DATE
Hiscox Ltd., New World Resources A Shares, St James's Place
INTERIM EX-DIVIDEND DATE
Aviva, BBA Aviation, Chime Communications, Computacenter, Costain
Group, EMIS Group, G4S, Highcroft Investment, InterQuest Group,
Interserve, Irish Continental Group Units, Maintel Holdings, Melrose,
Molins, Neptune-Calculus Income & Growth VCT, Petrofac Ltd.,
Playtech Ltd., Premier Farnell, RPS Group, Tikit Group, Total Produce,
Tribal Group
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Building Permits (US) (13:30)
Crude Oil Inventories (US) (15:30)
Existing Home Sales (US) (15:00)
Housing Starts (US) (13:30)
MBA Mortgage Applications (US) (12:00)
FINALS
Galliford Try, Origin Enterprises, Redrow, Smiths Group, Swallowfield
ANNUAL REPORT
Haynes Publishing Group
IMSS
PZ Cussons
AGMS
AEA Technology Group, Bango, Cable & Wireless Worldwide, PetroNeft
Resources, PZ Cussons, Stagecoach Theatre Arts, Warner Estate Holdings
UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Minutes (09:30)
FINAL DIVIDEND PAYMENT DATE
Cohort, Falkland Islands Holdings
FINAL EX-DIVIDEND DATE
Best of the Best, Brooks Macdonald Group, Consort Medical, Henderson
Smaller Companies Inv Trust, IG Group Holdings, Kier Group, Renishaw,
Standard Life UK Smaller Companies Trust
|
| US Market Report |
Stocks drift as investors wait for Spain
Market movers
Dow Jones: +12 at 13,565
S&P 500: -2 at 1,459
NASDAQ Composite: -1 at 3,178
Tuesday
was a day of gentle decline for leading US stocks although the
narrowly-based Dow Jones industrial average went in the opposite
direction to most other US benchmarks, finishing the day with a small
gain.
Waiting for Spain to bite the bullet
US
investors are reluctant to commit too hard until they know what Spain's
plans are regarding a bailout. Comments from both high level European
Central Bank officials and the Spanish Deputy Prime Minister, Saenz de
Santamaria, have indicated the cash strapped Mediterranean country could
make a formal request for assistance, in the form of bond buying by the
European Central Bank (ECB), but the clock is ticking and Spanish bond
yields are creeping back up again.
European Central Bank
member Luc Coene warned that rising bond yields may force Spain to ask
for aid and assume conditions by the European Union.
If Spain
does not ask for assistance, "then it will not last long before spreads
will rise again, and then Spain will be somewhat forced to come back on
its decision and submit to the conditionality program,” Coene said.
Coene insisted that the ECB will not buy Spain's bonds if the country
does not ask for assistance. Additionally, Coene said that the ECB would
stop buying immediately if countries failed to comply on agreements
with the central bank.
There was some positive news emanating
from Spain, however, with the Iberian country's bond auction going well.
The Spanish Treasury was able to issue 12 and 18-month bills for
€4.6bn, which is more than the top end of the €3.5bn - €4.5bn target.
18-month bills were issued for €1.02bn (maturity: February 21, 2014) at
a yield of 3.072%, lower than the previous 3.335%. 12-month bills were
issued for €3.56bn (maturity: September 20, 2013) at a yield of 2.835%,
lower than the previous 3.07%.
Stateside, there was some
cheery news on the housing front, with the National Association of Home
Builders/Wells Fargo housing market index climbing 3 points to a
seasonally adjusted level of 40 in September.
Charles Evans,
President of the Chicago Federal Reserve, did his bit to boost
sentiment, saying in a speech that the third round of quantitative
easing (QE3) announced by the Federal Reserve last week will help boost
the economy despite European debt problems and the upcoming 'fiscal
cliff' in the US.
"Given the slow and fragile recovery, the
large resource gaps that still exist, and the large risks we face, it
remains clear that we needed a more resilient economy," Evans said in a
prepared text of a speech in Ann Arbor, Michigan. Last week's Fed action
"provided a more accommodative monetary policy that can help us achieve
such resilience."
Bellwether stock signals slow-down
US delivery company FedEx
has lowered its projected outlook after it presented fiscal first
quarter net income that fell shy of last year's mark. Earnings for the
fiscal first quarter came in at $1.45 per diluted share compared to
$1.46 per share last year.
FedEx now expects 2013 earnings per
share (EPS) of $6.20 - $6.60 compared to its prior estimate of $6.90 -
$7.40. Second quarter EPS is expected to come in at $1.30 - $1.45. The
company said that the weakening global economy is impacting its results.
The company announced that it will raise shipping rates in
2013 in an attempt to offset falling volume and falling margins,
especially for priority services.
Computer chip firm Advanced Micro Devices
(AMD) tumbled after announcing it would part company with its Chief
Financial Officer. The group has been hit by the growth of mobile
computing and harsh competition from long time rival Intel. The stock is
down 32% since the start of the year.
Another tech company enduring board room upheaval is OCZ Technology,
which produces computer goods aimed at the "modder" (modification, or
customisation) end of the market. Chief Executive Officer Ryan Petersen
has resigned from the firm, best known for solid state drives and
super-fast memory chips.
Computer networking company F5 Networks
upheld the honour of the tech sector, topping the S&P 500 leader
board after a positive research note on the stock from Piper Jaffray.
On a day when Apple's share price cracked through the $700 level, the toppled king of the technology sector, Microsoft, announced plans to hike the company dividend by 15% to 23 cents a share.
Other markets
Crude
oil stockpiles rose by 2m barrels in the week ended September, the
American Petroleum Institute revealed. The news is sure to put
additional pressure on the price of oil, which has been heading south
this week.
The price of West Texas intermediate crude for
October delivery fell $1.33 to $95.29 a barrel on the New York
Mercantile Exchange.
The US dollar had a solid day in the
foreign exchange markets, while US Treasury yields declined, with the
benchmark 10-year Treasury seeing its yield dip to 1.80% from 1.84%, as
concerns about Spain linger and worries grow over rising tension in the
always fractious relationship between Japan and China.
|
| FX and Commodities round-up |
Dollar firms as profit taking hits euro
The dollar made
further headway on Tuesday as safe haven flows increased amid fears
about growing tensions between China and Japan and the ongoing Eurozone
crisis.
The dollar index, which measures the greenback against six major currencies, rose to 79.227 from 79.044 on Monday.
Markets
grew increasingly nervous about anti-Japan protests China over a
territorial dispute. Many Japanese companies have been forced to close
operations in fear of them being targeted by protestors.
Meanwhile risk appetite was kept at bay while markets await Spain's plans with regards to a bailout. European Central Bank
officials and the Spanish Deputy Prime Minister, Saenz de Santamaria,
have signalled that Spain could make a formal request for assistance.
However
time is running short and while Spain successfully sold €4.6bn in
short-term debt, the yield on the 10-year government bonds, which is a
key measure of borrowing rates, again rose above 6%, a level which is
seen as unsustainable.
Sterling rose against the euro on
Monday amid nerves about Spain and following a good deal of profit
taking after the single currency's recent rally. Against the dollar, it
rose to a four-and-a-half month high on Tuesday.
Against the Japanese yen, the greenback bought ¥78.88 from ¥78.74 previously.
The Australian dollar fell to $1.0444 from $1.0457 on Monday after the release of the Reserve Bank of Australia's dovish minutes from its latest interest-rate meeting.
Crude down for second day
Crude oil futures
fell for the second consecutive session on Tuesday, in the wake of
Monday's dramatic sell-off, amid increasing nerves about the health of
the global economy.
Crude for October delivery settled at a three week low of $95.29 a barrel, down $1.33 on the New York Mercantile Exchange.
Nerves
about the global business activity were shaken after US economic
bellwether FedEx Corp slashed it profit forecast while markets also
mulled reports that Saudi Arabia plans to maintain currently high oil
output.
Spain's rising bond yields were also in focus. The nation
successfully sold €4.6bn in short-term debt, however the yield on
10-year government bonds, which is a key measure of borrowing rates,
again rose above 6%. Anything over this level is regarded as
unsustainable.
Investors are also looking ahead to the
week’s inventories reports, which are expected to a bigger-than-expected
increase in crude supplies.
Brent oil futures, the European benchmark, fell $1.99 to $111.80 per barrel.
Among precious metals gold
eked out modest gains on Tuesday after a choppy session while platinum
futures nursed steep losses on reports that striking South African
miners will return to work.
Gold futures for December delivery added 60 cents to end at $1,771.20 an ounce on the Comex division of the New York Mercantile Exchange.
Platinum for October delivery declined $36.30 to close at $1,636.30 an ounce.
|
|
No comments:
Post a Comment