London open: Stocks rise but Barclays limits gains
Market Movers
- techMARK 2,107.26 +0.22%
- FTSE 100 5,851.56 +0.03%
- FTSE 250 11,976.77 +0.19%
- Barclays falls after unveiling two new US probes
- US stock market expected to open today
- Asian data lifts the mood
UK stock markets edged higher in early trading on Wednesday despite some poorly-received third-quarter figures from Barclays and Next early on,
The New York Stock Exchange is expected to open as usual this afternoon, following a two-day closure due to safety concerns as a result of Hurricane Sandy, which has killed dozens of people and left millions without power on the American East Coast.
"We have a green light," the NYSE Euronext's Chief Operating Officer, Larry Leibowitz, said in an interview with Reuters.
Economic data from Asia
was lifting sentiment this morning: South Korean industrial output
improved for the first time in four months; Taiwan swung back to growth
in the most recent quarter; while the unemployment rate in Singapore
declined.
Markus Huber, the head of German HNW trading at ETX
Capital, said this morning: "Overall equities are expected to maintain
their momentum possibly even pushing towards the higher end of the
current trading however some profit taking is likely as the most recent
move to the upside has taken place under relatively low volume and the
general picture especially what Spain and Greece is concerned hasn't
changed much still leaving plenty of uncertainty to be dealt with."
FTSE 100: Barclays hit by two new US probes
UK banking giant Barclays
dropped early on despite meeting forecasts in the third quarter with
strong growth seen in adjusted pre-tax profits, from £1.34bn to £1.73bn.
The firm however revealed new "legal and regulatory matters" which
include two new probes in the US.
High Street fashion and homewares retailer Next
also fell after admitting that its sales performance was "volatile" in
the third quarter with stronger sales in late September and early
October offsetting an unusually quiet start to August.
Life assurance company Standard Life
gained after saying inflows across its long-term savings businesses
plus a strong performance at Standard Life Investments helped to
increase both group assets under administration and Standard Life
Investments third party assets to record levels.
Higher production at its Esperanza mine helped Chilean copper miner Antofagasta increase output in the third quarter, seeing shares rise early on.
Mobile phone networks giant Vodafone
was in demand after announcing that its NZ$840m (£429m) acquisition of
TelstraClear, the New Zealand business of Australian telecoms group
Telstra, has now gone through.
FTSE 250: St James's Place rises after Q3 update
Wealth management group St James's Place
rose strongly after reporting a 6% increase n funds under management
(FuM) in the third quarter as it reported good growth in new business
despite the continuing macroeconomic uncertainty.
Energy company Essar was higher after gaining permission to chop down trees close to its Mahan coal block.
Soft drinks giants AG Barr and Britvic were out of favour this morning after extending the deadline for the conclusion of merger talks.
| UK Event Calendar |
Wednesday October 31
INTERIMS
Volex
INTERIM DIVIDEND PAYMENT DATE
Amiad Water Systems Ltd, Foresight Solar VCT, Wynnstay Group
INTERIM EX-DIVIDEND DATE
APR
Energy, Bloomsbury Publishing, Booker Group, C&C Group, Development
Securities, Downing Planned Exit VCT 2 'C' Shares, Downing Planned Exit
VCT 2 'D' Shares , Downing Planned Exit VCT 2 'F' Shares, Downing
Planned Exit VCT 2011 (General Shares), Downing Planned Exit VCT 2011
(Low Carbon Shares), Downing Planned Exit VCT 2011 (Structured Shares),
Downing Planned Exit VCT 3 'C' Shares, Downing Planned Exit VCT 3 'D'
Shares , Downing Planned Exit VCT 3 F Shares, Hargreave Hale AIM VCT 2,
Hilton Food Group, Howden Joinery Group, Intertek Group, ITV, Laird,
Lombard Risk Management, Lookers, M&C Saatchi, Moss Bros Group,
Provident Financial, Restore
QUARTERLY PAYMENT DATE
F&C Commercial Property Trust Ltd., JP Morgan Chase & Co, Middlefield Canadian Income PCC, Schroder Income Growth Fund
QUARTERLY EX-DIVIDEND DATE
JPMorgan Claverhouse Inv Trust
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Chicago PMI (US) (13:45)
Crude Oil Inventories (US) (15:30)
GFK Consumer Confidence (GER) (07:00)
International Reserves (EU) (11:00)
MBA Mortgage Applications (US) (12:00)
Retail Sales (GER) (07:00)
Q3
First Quantum Minerals Ltd., GlaxoSmithKline
FINALS
Neos Resources, Tracsis
ANNUAL REPORT
Aquarius Platinum Ltd.
IMSS
Aegis Group, Barclays, Logica, Mondi, Next, Phoenix Group Holdings (DI), St James's Place, Standard Life
SPECIAL EX-DIVIDEND PAYMENT DATE
IndigoVision Group
EGMS
OSJC Center for Cargo Container Traffic Transcontainer GDR (Reg S)
AGMS
Ashmore Group, Carpathian, Coburg Group, Greenko Group, Ideagen, Pacific Horizon Inv Trust, Tricor
FINAL DIVIDEND PAYMENT DATE
Abbey, Alumasc Group, Haynes Publishing Group, Rank Group
FINAL EX-DIVIDEND DATE
Abcam, AIREA, Allocate Software, El Oro Ltd, Go-Ahead Group, IndigoVision Group, JPMorgan Global Markets Emerging Income Trust
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| Europe Market Report |
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| FTSE 100 | Euronext | Dax perf | CAC 40 |
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European Stocks To Open On Quiet Note
European
stocks may open slightly higher on Wednesday, following a rally in the
previous session as signs of improvement in the U.S. housing market and
positive industrial output data out of South Korea perked up investor
appetite for riskier assets. Asian markets are turning in a mixed
performance, while crude and copper are modestly higher after both NYSE
and Nasdaq said they plan to resume trading Wednesday. With Hurricane
Sandy's winds and rains subsiding, the task of calculating the economic
impact has begun.
South Korea's industrial output increased a
seasonally adjusted 0.8 percent from the previous month in September,
Statistics Korea said today - rising for the first time in four months.
The headline figure was in line with forecasts after falling 0.7 percent
in August. On a yearly basis, industrial production improved 0.7
percent after rising 0.3 percent in the previous month, also matching
expectations.
In the forex market, the Japanese yen is trading in
a tight range against the dollar following the Bank of Japan's latest
announcement of fresh monetary easing steps.
In economic
releases, British consumer confidence declined to a six-month low in
October with households turning more worried over their own financial
situation over the next 12 months, a survey by GfK NOP showed. The
consumer confidence index declined to -30 in October from -28 in
September, marking its weakest reading since April when the index scored
-31. Inflation and unemployment data from Eurozone are due later in the
European session.
Meanwhile, Eurozone finance ministers will
hold a conference call today, with the discussion likely to focus on the
next loan disbursement worth EUR 31.5 billion to Greece. Reports
suggest that the Greek government will be able to push through further
austerity measures amounting to EUR 13.5 billion, though some of the
coalition partners reportedly objected to proposals regarding labor
reforms.
Across the Atlantic, investors await ADP numbers,
Chicago PMI data and the report on weekly jobless claims before the
influential non-farms payroll data on Friday. With the long campaign
drawing to a close between President Barack Obama and Republican Mitt
Romney, investors are waiting for the results of next week's
presidential election for near-term directional cues.
In
domestic corporate news, Italian car maker Fiat Group posted a profit
for the third quarter from a loss last year, reflecting a strong
performance by its U.S. unit Chrysler LLC and growth in Brazil.
Nevertheless, the company remains pessimistic on the European
conditions, and now expects full-year 2012 profit at the lower end of
its guidance range.
Central European Media Enterprises reported a
narrower loss for the third quarter, but reduced its forecasts of free
cash flow for the fourth quarter, citing a significant decline in demand
for television advertising across markets compared to previous
expectations.
European stocks rose sharply on Tuesday boosted by
better than expected earnings reports from companies such as Allianz,
Deutsche Bank and BP as well as a successful Italian bond auction.
However, trading volume remained thin in the wake of suspension of
trading in the U.S. for a second day running.
The Euro Stoxx 50
index of Eurozone bluechip stocks rose 1.5 percent and the Stoxx Europe
50 index, which includes some major U.K. companies, added a percent.
Around Europe, Switzerland's SMI rose half a percent, the U.K.'s FTSE
100 added a percent, the German DAX advanced 1.1 percent and France's
CAC 40 rallied 1.5 percent.
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| US Market Report |
NYSE Euronext has
announced that it will close all its trading venues on Tuesday, in
coordination with all US equities, bonds, options and derivatives
markets.
The above comes as 85 mile-per-hour winds
from Hurricane Sandy hone in on New York city, thus paralysing capital
markets, with flooding expected in lower Manhattan, precisely where the
financial district is concentrated.
Nevertheless, NYSE has indicated that it intends to reopen on Wednesday, October 31st, conditions permitting.
| FX and Commodities round-up |
FX round-up: Euro up against dollar and yen
The
euro gained against the safe haven dollar and yen on Tuesday as
investors cheered data that showed Spain's economy contracted less than
expected in the third quarter.
The single currency was also boosted by a decline in Italy's borrowing costs following its latest debt sale.
The euro rose to a session high of $1.2983, in lighter than usual
trading, before trading at around $1.2959 later in the session.
Meanwhile US trading desks remained thinly staffed as hurricane Sandy battered the US.
The ICE dollar index, which measures the US dollar against a basket of
six other major currencies, tumbled to a low of 79.827 before later
trading at around 79.943 later in the session.
The Japanese
yen firmed against the greenback after the Bank of Japan's monetary
easing steps disappointed. Investors had hoped the central bank would
take more aggressive asset purchases.
Sterling rallied against the dollar after figures showed stronger-than-expected UK retail sales in October.
Commodities: Crude inches higher
Crude
oil futures rose on Tuesday, as normal floor trading remained closed
for a second day as hurricane Sandy hit the East Coast of America.
Crude for December delivery climbed 14 cents to settle at $85.68 a
barrel as the New York based CME Group's New York Mercantile Exchange
remained closed.
Markets are widely anticipating that normal trading will resume on Wednesday however no confirmation has been given.
Gasoline futures registered a slight loss on Tuesday despite fears of a
steep drop in output. Gasoline for December delivery fell almost 3
cents at $2.73 a gallon.
Focus mid week is likely to fall on
the Energy Information Administration's stockpile report however data
will be released a day later than usual as it assesses the storm damage
and supply delays.
Elsewhere among precious metals gold settled with gains on Tuesday after Monday's decline.
Gold for December delivery advanced $3.40 to $1,712.10 an ounce as
normal floor trading remained closed on the New York Mercantile Exchange
after Monday's evacuation of the New York offices.
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