ADVFN III Morning Euro Markets Bulletin -October 3, 2012-.

ADVFN III	Morning Euro Markets Bulletin
Daily world financial news

Wednesday, 03 October 2012

London Market Report

FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts

London open: Sentiment dampened by Spain, Chinese data Market Movers techMARK 2,134.44 -0.18% FTSE 100 5,795.18 -0.25% FTSE 250 11,858.51 -0.30% - Rajoy denies Spanish bailout request - Chinese data disappoints - Tesco and Sainsbury's fall after updates - FirstGroup sinks after West Coast failure Stocks in the UK slipped in early trading on Wednesday as concerns about a Spanish bailout and weak economic data from China spooked investors. Spanish Prime Minister Mariano Rajoy yesterday denied claims that his country is looking to request a bailout this weekend. He said that the country had no immediate plans to ask for aid. When asked about a report in Reuters on Monday, Rajoy said: "If a news agency reports that we'll ask for aid this weekend, there can only be two explanations; that the agency is right, and knows more than I do, which is possible, or that they are not right. "But, if it helps, and you accept that what I say is more important than this leak, I say no (we won't ask for aid this weekend.)" Market analyst Craig Erlam from Alpari said this morning: "The comments are unlikely to have to have a major impact on the markets as long as Rajoy doesn't delay making the request for too long. It is thought that he is holding out until after the regional elections on 21 October, a similar move to what we saw earlier this year." In economic data today, China's non-manufacturing purchasing managers' index (PMI) fell from 56.3 to 53.7 in September, according to the National Bureau of Statistics and China Federation of Logistics and Purchasing. Meanwhile, China's consumer sentiment index fell from 90.4 to 89.3 last month, its lowest level since December, according to Deutsche Boerse's MNI. FTSE 100: Retailers disappoint early on Supermarket chains Tesco and Sainsbury's failed to impress with their updates this morning, with both providing a drag on the Footsie in the opening hour. Global retailer Tesco fell despite seeing a return to like-for-like (LFL) sales growth in the second quarter. Both profits and margins decreased in the 29 weeks to August 25th. Meanwhile, Sainsbury's fell despite saying it had outperformed the market in the second quarter, with total sales up 4.4% excluding fuel and LFL sales up 1.9%. Pearson, the education and publishing firm, dropped after revealing that its Chief Executive Officer Marjorie Scardino has decided to call it quits at the end of the year. Heading the other way was mining group Xstrata after raising its copper mineral resource estimate at the major long-life development El Pachn project in San Juan Province, Argentina, by 20%. FTSE 250: FirstGroup plummets after DfT cancels West Coast rail deal Shares in transport firm FirstGroup took a hammering this morning after the Department for Transport (DfT) dropped the competition to award it the West Coast franchise. Following a legal challenge from current operator Virgin Rail, the DfT said it had found "significant technical flaws in the way the franchise process was conducted" and was launching a review. Stagecoach, part owner of the Virgin Rail joint venture with Virgin Group, was in demand early on after saying it was in discussions with the government regarding the rail franchising review. Budget airline easyJet was in demand after a surge in business at the end of the summer and a benign operating environment means it was upping its full-year profit forecasts. BTG, the specialist healthcare company, jumped after reporting it had outperformed in the first half and was boosting its revenue expectations for the full year. Tanzania-focused gold producer African Barrick Gold rose after raising its reserves estimate at the Bulyanhulu Upper East Project as it continues to expand the project. UK Event Calendar Wednesday October 03 INTERIMS Tesco INTERIM DIVIDEND PAYMENT DATE Greencore Group, Kazakhmys, Novae Group, PPHE Hotel Group Ltd, Rathbone Brothers, TUI Travel INTERIM EX-DIVIDEND DATE Advanced Medical Solutions Group, Ashley (Laura) Holding, Barr (A.G.), Bodycote, Brammer, Charles Taylor, F&C Asset Management, F&C Private Equity Trust, Fairpoint Group, Fiberweb, Fisher (James) & Sons, GVC Holdings, Henry Boot, Huntsworth, Inmarsat, Judges Scientific, Martin Currie Global Portfolio Trust, Motivcom, New Britain Palm Oil Ltd. (DI), Northbridge Industrial Services, office2office, Petropavlovsk, Severfield-Rowen, Staffline Group, Tandem Group, Weir Group, Witan Pacific Inv Trust QUARTERLY EX-DIVIDEND DATE British Land Co, Investors Capital Trust 'A' Shares, JP Morgan Chase & Co, Mercantile Investment Trust (The), Merchants Trust, Schroder Income Growth Fund, Torchmark Corp. INTERNATIONAL ECONOMIC ANNOUNCEMENTS Crude Oil Inventories (US) (15:30) ISM Non-Manufacturing (US) (15:00) ISM Services (US) (15:00) MBA Mortgage Applications (US) (12:00) PMI Composite (GER) (08:55) PMI Services (GER) (08:55) Retail Sales (EU) (10:00) Q4 Sportingbet FINALS AI Claims Solutions, Sportingbet SPECIAL EX-DIVIDEND PAYMENT DATE TR European Growth Trust AGMS Aurora Russia Ltd. TRADING ANNOUNCEMENTS Marston's, Sainsbury (J), Dunelm FINAL DIVIDEND PAYMENT DATE Betfair Group, Stagecoach Group FINAL EX-DIVIDEND DATE Abbey, Alumasc Group, City of London Investment Group, Galliford Try, JPMorgan Mid Cap Inv Trust, Smith (DS), TR European Growth Trust, Tricorn Group, Utilico Investments Ltd (DI), Zetar Europe Market Report FTSE 100 Euronext Dax perf CAC 40 European stocks are set to drift lower on Wednesday on concerns about Europe's ongoing financial crisis after Spanish Prime Minister Mariano Rajoy played down expectations of an imminent bailout for the debt-laden country. Asian markets are trading mostly lower in thin holiday trading and commodities are subdued as concerns over slowing Chinese growth added to uncertainty over Europe's debt problems. The Purchasing Managers Index (PMI) of China's non-manufacturing sector, a key economic indicator, fell to 53.7 in September from 56.3 in August, with a reading below 50 indicating contraction of the sector, a survey by the China Federation of Logistics and Purchasing showed today. Closer home, shop price inflation in the United Kingdom fell slightly in September to 1.0 percent from the August reading of 1.1 percent, mainly due to falling prices of non-food articles, British Retail Consortium reported. Food price inflation remained unchanged for a third straight month at 3.1 percent, while deflation in non-food prices increased to 0.2 percent from the August reading of 0.1 percent. Looking ahead, retail sales and final Purchasing Managers' survey results are due from Eurozone later in the day. In corporate news, Volkswagen of America Inc., a unit of Volkswagen AG, announced that it has sold 36,339 units in September 2012, 34.4 percent higher than 27,036 units sold in the corresponding month in the previous year. Porsche Cars North America Inc., the U.S. distributor of Porsche cars and a unit of Porsche AG, said that it sold 2,736 vehicles in September 2012, up 26.08 percent from 2,170 vehicles sold last September. MetroPCS Communications Inc. confirmed that it is in discussions with German telecommunications giant Deutsche Telekom AG regarding an agreement to combine T-Mobile USA and MetroPCS. French drug giant Sanofi S.A. agreed to acquire Colombian generic drug maker Genfar S.A. to further expand into Latin America. U.K.-based data storage solutions provider Xyratex reported a bigger-than-expected decline in third-quarter profit, hurt by a sharp decline in sales, coupled with a rise in selling, general, and research expenses. European stocks largely finished in the red Tuesday, giving back their early gains, on doubts over whether or not debt-laden Spain will seek a bailout. The Euro Stoxx 50 index of Eurozone bluechip stocks eased 0.2 percent and the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.4 percent, while the U.K.'s FTSE 100, the German DAX and France's CAC 40 indexes fell between 0.2 percent and 0.6 percent. Switzerland's SMI ended marginally higher, led by gains in the banking sector. U.S. stocks turned in a lackluster performance overnight on renewed uncertainty about the timing of a Spanish bailout after Spanish Prime Minister Mariano Rajoy denied a Reuters report that the nation could request a euro-zone bailout as early as next weekend. Also, traders seemed somewhat reluctant to make any significant moves ahead of Friday's monthly jobs report. The Dow edged down 0.2 percent, while the tech-heavy Nasdaq inched up 0.2 percent and the S&P 500 crept up 0.1 percent. US Market Report US close: Markets tread water Market movers Dow Jones Industrial: -33 at 13,482 NASDAQ Comp.: +7 at 3,120 S&P 500: +1 at 1,446 US stocks ended mixed, as investors kept a watching brief on Spain while preparing themselves for the onslaught of third quarter earnings updates over the next week or two. Metro PCS shot higher as it confirmed it is in talks with T-Mobile owner Deutsche Telekom. Fellow pre-paid mobile phone network operator Leap Wireless leapt in sympathy but Sprint, which had been mooted by some as a potential suitor for Metro, is off. Elsewhere in the tech sector, Juniper Networks relinquished earlier gains. The network equipment firm unveiled plans to lob some 500 employees on to the dole. Sector peer Cisco Systems also retreated despite MKM Partners upgrading the stock to "buy". In other broker action, Citi downgraded home builder KB Home to "sell" from "neutral", while Lennar has been upped to "neutral" from "sell". A sign of the times: in his monthly investment letter fund-manager Bill Gross tells investors that he believes that gold must be a part of any diversified portfolio. Analysts at Deutsche Bank, for their part, have today raised their gold price forecasts for 2013 and 2014 by 3% and 11.1%, to 40 and 44 dollars per ounce, respectively. Another opinion changer, David Einhorn of Greenlight Capital, was talking down the prospects of Chipotle Mexican Grill, saying that the resurgence of Mexican fast-food joint Taco Bell is a concern. A spokesman for Chipotle refuted Einhorn's claims, telling the Marketwatch news agency that "We haven't seen Taco Bell to be a threat at all." Light data calendar Comparable retail sales rose by 1.6% on month in September, according to the latest Redbook survey data. Oil relinquishes gains 10-year US Treasuries ended the day little changed, with yields at 1.62%. West Texas sweet light crude for November delivery eased 59 cents to $91.89 a barrel on the New York Mercantile Exchange. S&P 500 - Risers Metropcs Communications Inc. (PCS) $14.16 +22.92% First Solar Inc. (FSLR) $22.88 +4.33% WellPoint Inc. (WLP) $60.46 +4.28% Sandisk Corp. (SNDK) $44.31 +3.02% Gilead Sciences Inc. (GILD) $69.18 +2.57% Coach Inc. (COH) $56.07 +2.56% Time Warner Cable Inc. (TWC) $98.16 +2.56% Hospira Inc. (HSP) $33.65 +2.50% Electronic Arts Inc. (EA) $12.65 +2.43% AutoNation Inc. (AN) $44.55 +2.41% S&P 500 - Fallers Sprint Nextel Corporation (S) $4.90 -5.41% Chipotle Mexican Grill Inc. (CMG) $302.96 -4.17% J.C. Penney Co. Inc. (JCP) $23.56 -4.15% Mosaic Company (MOS) $55.76 -3.88% Allegheny Technologies Inc. (ATI) $31.00 -3.52% Abercrombie & Fitch Co. (ANF) $32.47 -2.93% Expeditors International Of Washington Inc. (EXPD) $35.17 -2.70% Textron Inc. (TXT) $25.78 -2.57% Harman International Industries Inc. (HAR) $46.03 -2.56% Alpha Natural Res (ANR) $6.44 -2.13% Dow Jones I.A - Risers Chevron Corp. (CVX) $117.96 +0.61% Microsoft Corp. (MSFT) $29.66 +0.58% Merck & Co. Inc. (MRK) $45.47 +0.56% Intel Corp. (INTC) $22.84 +0.37% Pfizer Inc. (PFE) $25.12 +0.34% 3M Co. (MMM) $93.54 +0.27% AT&T Inc. (T) $37.81 +0.16% Verizon Communications Inc. (VZ) $45.86 +0.11% United Technologies Corp. (UTX) $78.39 +0.05% Dow Jones I.A - Fallers E.I. du Pont de Nemours and Co. (DD) $49.50 -1.71% McDonald's Corp. (MCD) $90.93 -1.15% American Express Co. (AXP) $57.18 -0.95% Procter & Gamble Co. (PG) $68.79 -0.95% Cisco Systems Inc. (CSCO) $18.87 -0.89% Walt Disney Co. (DIS) $51.64 -0.83% Boeing Co. (BA) $69.53 -0.69% Alcoa Inc. (AA) $8.85 -0.67% Travelers Company Inc. (TRV) $68.70 -0.54% Hewlett-Packard Co. (HPQ) $17.13 -0.46% Nasdaq 100 - Risers Research in Motion Ltd. (RIMM) $8.27 +5.22% Sandisk Corp. (SNDK) $44.31 +3.02% Green Mountain Coffee Roasters Inc. (GMCR) $23.99 +2.92% Gilead Sciences Inc. (GILD) $69.18 +2.57% Electronic Arts Inc. (EA) $12.65 +2.43% F5 Networks Inc. (FFIV) $106.97 +2.18% Sirius Satellite Radio Inc. (SIRI) $2.62 +2.14% Celgene Corp. (CELG) $78.42 +2.14% Lam Research Corp. (LRCX) $32.10 +1.68% Amgen Inc. (AMGN) $86.35 +1.49% Nasdaq 100 - Fallers Expeditors International Of Washington Inc. (EXPD) $35.17 -2.70% Randgold Resources Ltd. Ads (GOLD) $124.17 -2.14% Starbucks Corp. (SBUX) $49.30 -1.69% NetApp Inc. (NTAP) $32.45 -1.49% Dollar Tree Stores Inc. (DLTR) $47.63 -1.39% Staples Inc. (SPLS) $11.45 -1.38% Priceline.Com Inc. (PCLN) $616.28 -1.37% Bed Bath & Beyond Inc. (BBBY) $62.28 -1.32% Warner Chilcott Plc (WCRX) $13.25 -1.27% FX and Commodities round-up FX round-up: Euro firms as Spain denies bailout move The euro retained gains against the dollar on Tuesday as Spain quashed reports that it is moving closer to asking for a bailout. The ICE dollar index, which measures the US currency against a basket of six others, fell to a low of 79.478 before gaining ground to around 79.736 compared to 79.795 on Monday. The euro bought $1.2922 from $1.2895 the previous day as markets digested reports that the Eurozone's fourth-largest economy was getting ready to ask for a bailout as early as this weekend. However Spain's Prime Minister Mariano Rajoy was quick to quash the reports saying a bailout request was not imminent. A bailout for Spain is widely seen as positive as it will lower borrowing costs and remove persistent uncertainty about the nation's debt situation. Also in focus was a review of Spain's credit rating later this month by Moody's Investors Service. Many analysts believe the country will be downgraded to junk status. The Australian dollar changed hands at $1.0369 ahead of the central bank's surprise rate cut compared to $1.0371 on Monday. Against the yen, the greenback bought 78.14 from 78.02 on Monday while sterling lost earlier momentum to trade at $1.6146 compared to $1.6134 before. Commodities: Last minute move into negative territory Crude oil futures ended Tuesday's session lower in lighter than usual trading as traders mulled developments in the Eurozone and as they geared up ahead of weekly inventory data. Crude for November delivery traded in positive territory for most of the session before a last minute fall of 59 cents to $91.89 a barrel on the New York Mercantile Exchange. There was some trepidation ahead of US oil inventory data due out Wednesday. The Energy Information Administration's report is expected to show that crude oil supplies increased 1.5m barrels in the last week, prompting many traders to take profit. Meanwhile markets took note of reports that Spain was about to ask for a financial bailout although Spain's Prime Minister Mariano Rajoy denied the reports. On the ICE futures exchange Brent crude for November delivery settled down 62 cents or 0.6% at $111.57 a barrel. Among precious metals gold eased off a seven-month high on Tuesday on increasing bets that Spain will ask for a bailout. Gold futures for December delivery fell $7.70 or 0.4% to settle at $1,775.60 an ounce on the Comex division of the New York Mercantile Exchange. Silver for December fell 28 cents to settle at $34.67 an ounce while January platinum captured a $1.40 gain to close at $1,687.20 an ounce. December copper rose 2 cents to $3.80 a pound while palladium enjoyed the best gains, up $8.60 at $654.20 an ounce.