ADVFN III Morning Euro Markets Bulletin -October 8th, 2012-.

ADVFN III	Morning Euro Markets Bulletin
Daily world financial news

Monday, 08 October 2012

London Market Report
FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts
London open: Stocks dented by global growth concerns Market Movers techMARK 2,143.51 -0.81% FTSE 100 5,822.73 -0.82% FTSE 250 11,935.78 -1.04% - World Bank cuts forecasts for China - Evraz leads miners lower - BAE drops on risks to EADS merger UK stocks slid sharply on Monday morning with mining and financial shares weighing on the FTSE 100 early on as concerns over the global economy spurred a move away from 'risk'. The World Bank has cut its 2012 growth estimate for China from 8.2% to 7.7%, saying that the economy has been hit by weak export demand and investment growth. "China's slowdown this year has been significant, and some fear it could still accelerate," the World Bank said. This follows the leaked estimates of the International Monetary Fund (IMF) growth forecasts last week. The IMF is expected to announce tomorrow that it has revised down its growth expectations for this year and the next. Meanwhile, according to the Brookings Institution-Financial Times' tracking index, known as 'Tiger', the world's recovery is "on the ropes". "Overall trading activity is likely to be subdued today as markets continue to be range-bound although with a slight downward bias," said Markus Huber from ETX Capital. "It remains doubtful if markets will be able to stage a breakout to the upside any time soon as long as Spain hasn't agreed to an aid package instead it needs to be seen how much patience investors really have what Spain is concerned with markets are likely to test the recent lows if there isn't a solution soon." FTSE 100: Evraz leads the decline on broker comments Steel giant Evraz was a heavy faller after Nomura revised its steel demand growth forecast from 3% to 0% for 2013, saying that it expects "further weakness" in the sector. "We expect continued weakness in the sector as investors are unlikely to buy the equities into what is already expected to be a challenging 3Q results season," the broker said. Sector peers Fresnillo, Vedanta, ENRC and BHP Billtion were also out of favour, along with financial stocks Old Mutual, Lloyds and Royal Bank of Scotland. Shares in BAE Systems were under pressure after its largest shareholder Invesco (which owns 13.3%) has highlighted its "significant reservations" with the group's potential merger with aerospace giant EADS. The fund manager said that it "does not understand the strategic logic for the proposed combination", saying that the merger would materially jeopardise BAE's position in the US defence market. Imperial Tobacco was trading lower after Nomura downgraded its rating on the stock from 'neutral' to 'reduce' as part of its sector review on the European tobacco sector. The broker lowered its view on the sector from 'bearish' to 'neutral' this morning, saying that after three years of outperform, there is a risk of underperformance as many of the drivers of the 19% per annum average total shareholder return since 2009 are less supportive from here. FTSE 250: Cookson sinks on Engineered Ceramics slowdown Cookson, which provides materials and know-how to the steel production, foundry castings and eletronics markets, has warned on full-year profits after a sticky third quarter for its Engineered Ceramics division. Shares dropped around 14.55% early on. Michael Page International, the recruitment consultant, fell after warning that full-year operating profit will be slightly below current analyst expectations in its second disappointing trading update in a row. Sector peer Hays was also lower. FTSE 100 - Risers Carnival (CCL) 2,361.00p +0.04% FTSE 100 - Fallers Evraz (EVR) 243.80p -4.05% Fresnillo (FRES) 1,910.00p -2.90% Vedanta Resources (VED) 1,071.00p -2.72% Weir Group (WEIR) 1,802.00p -2.70% Old Mutual (OML) 168.40p -2.32% Eurasian Natural Resources Corp. (ENRC) 325.90p -2.22% Polymetal International (POLY) 1,125.00p -2.09% IMI (IMI) 951.00p -2.06% GKN (GKN) 221.90p -1.94% Melrose (MRO) 241.70p -1.91% FTSE 250 - Risers Rank Group (RNK) 152.29p +1.87% Halfords Group (HFD) 307.40p +1.59% UK Commercial Property Trust (UKCM) 66.85p +1.29% Shanks Group (SKS) 82.10p +0.86% Bwin.party Digital Entertainment (BPTY) 117.40p +0.86% easyJet (EZJ) 623.00p +0.56% Brown (N.) Group (BWNG) 280.00p +0.54% Restaurant Group (RTN) 368.90p +0.46% Hansteen Holdings (HSTN) 78.45p +0.32% Heritage Oil (HOIL) 194.50p +0.31% FTSE 250 - Fallers Cookson Group (CKSN) 525.50p -14.55% Morgan Crucible Co (MGCR) 260.80p -6.69% Michael Page International (MPI) 350.00p -4.14% Lonmin (LMI) 529.00p -3.64% Hays (HAS) 75.90p -3.50% Ocado Group (OCDO) 66.35p -3.42% Cranswick (CWK) 765.00p -3.35% Perform Group (PER) 415.00p -3.17% Homeserve (HSV) 222.60p -2.96% UK Event Calendar Monday October 08 INTERIM DIVIDEND PAYMENT DATE Camellia, Hikma Pharmaceuticals, JPMorgan American Inv Trust, Tex Holdings QUARTERLY PAYMENT DATE Alpha Pyrenees Trust Ltd. INTERNATIONAL ECONOMIC ANNOUNCEMENTS Balance of Trade (GER) (07:00) Current Account (GER) (07:00) Harmonised Competitiveness Indicators (EU) (09:00) Industrial Production (GER) (11:00) Retail Price Index (GER) (07:00) GMS InterContinental Hotels Group FINALS Waterman Group ANNUAL REPORT Cambium Global Timberland Ltd. IMSS Hays, Michael Page International EGMS Redefine International AGMS Cambium Global Timberland Ltd., Mid Wynd International Inv Trust, Scotgold Resources (DI) TRADING ANNOUNCEMENTS Carclo Europe Market Report FTSE 100 Euronext Dax perf CAC 40 Europe mid-morning: Growth concerns weigh on stocks Asmussen (ECB): Calm on financial markets is deceptive Asmussen (ECB): Cannot give Greece more time Rehn (EU): Expects Eurogroup to give Greece its support FTSE-100: -0.60% Dax-30: -1.18% Cac-40: -1.14% FTSE Mibtel: -1.42% Ibex 35: -0.94% Stoxx 600: -0.81% European equities have begun a data-light week lower. That after the World Bank cut its growth forecast for economic growth in "developing East Asia" this year to 7.2% from 8.3% in 2011, its slowest pace since 2011 and below the 7.6% forecast in May. Furthermore, and acting as a backdrop, in its semi-annual World Economic Outlook (WEO)-slated for release tomorrow- the International Monetary Fund (IMF) is expected to cuts its forecast for world growth. This as some observers worry that "global rebalancing" is proceeding too slowly. Of more immediate concern, investors are closely watching events in Greece and Spain. More specifically, European Central Bank (ECB) governing council member Jorg Asmussen has been cited as saying that Greece cannot be given more time –by the central bank- to meet its commitments as that would amount to state financing. On a more positive note, European Comission commissioner Olli Rehn believes that the Eurogroup will show its support for Greece when it meets today. German Chancellor Angela Merkel will visit Greece tomorrow. From a sector stand-point, and on the corporate front, the best performance is now to be seen in the following industrial groups within the DJ Stoxx 600: Automobiles (1.87%), Basic resources (-1.64%) and Construction (-1.35%). German exports rise more than expected The Sentix survey of Eurozone investors´ confidence has come in at -22.2 for November (Consensus: -20.9), versus -23.2 for the month before. The Swiss consumer price index for the month of September has come in at -0.4% year-on-year, as expected, and above last month´s reading of -0.5%. The French central bank´s business confidence index for the month of September has come in at 92 points, versus 93 for the previous month (Consensus: 91). The German trade surplus for the month of August rose to €16.3bn; ahead of the €15.3bn forecast by the consensus, that on the back of a 2.4% month-on-month increase in exports (Consensus: -0.5%). Germany´s current account surplus on the other hand fell back towards €11.1bn in August, versus the €11.7bn seen in July. Swiss unemployment remained unchanged at 2.8% in September. Slight retreat in the single currency The euro/dollar is now down by 0.57% to 1.2960. Front month Brent crude futures are falling by 1.074 dollars to the 110.83 dollar mark on the ICE. London Market Report FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts London open: Stocks dented by global growth concerns Market Movers techMARK 2,143.51 -0.81% FTSE 100 5,822.73 -0.82% FTSE 250 11,935.78 -1.04% - World Bank cuts forecasts for China - Evraz leads miners lower - BAE drops on risks to EADS merger UK stocks slid sharply on Monday morning with mining and financial shares weighing on the FTSE 100 early on as concerns over the global economy spurred a move away from 'risk'. The World Bank has cut its 2012 growth estimate for China from 8.2% to 7.7%, saying that the economy has been hit by weak export demand and investment growth. "China's slowdown this year has been significant, and some fear it could still accelerate," the World Bank said. This follows the leaked estimates of the International Monetary Fund (IMF) growth forecasts last week. The IMF is expected to announce tomorrow that it has revised down its growth expectations for this year and the next. Meanwhile, according to the Brookings Institution-Financial Times' tracking index, known as 'Tiger', the world's recovery is "on the ropes". "Overall trading activity is likely to be subdued today as markets continue to be range-bound although with a slight downward bias," said Markus Huber from ETX Capital. "It remains doubtful if markets will be able to stage a breakout to the upside any time soon as long as Spain hasn't agreed to an aid package instead it needs to be seen how much patience investors really have what Spain is concerned with markets are likely to test the recent lows if there isn't a solution soon." FTSE 100: Evraz leads the decline on broker comments Steel giant Evraz was a heavy faller after Nomura revised its steel demand growth forecast from 3% to 0% for 2013, saying that it expects "further weakness" in the sector. "We expect continued weakness in the sector as investors are unlikely to buy the equities into what is already expected to be a challenging 3Q results season," the broker said. Sector peers Fresnillo, Vedanta, ENRC and BHP Billtion were also out of favour, along with financial stocks Old Mutual, Lloyds and Royal Bank of Scotland. Shares in BAE Systems were under pressure after its largest shareholder Invesco (which owns 13.3%) has highlighted its "significant reservations" with the group's potential merger with aerospace giant EADS. The fund manager said that it "does not understand the strategic logic for the proposed combination", saying that the merger would materially jeopardise BAE's position in the US defence market. Imperial Tobacco was trading lower after Nomura downgraded its rating on the stock from 'neutral' to 'reduce' as part of its sector review on the European tobacco sector. The broker lowered its view on the sector from 'bearish' to 'neutral' this morning, saying that after three years of outperform, there is a risk of underperformance as many of the drivers of the 19% per annum average total shareholder return since 2009 are less supportive from here. FTSE 250: Cookson sinks on Engineered Ceramics slowdown Cookson, which provides materials and know-how to the steel production, foundry castings and eletronics markets, has warned on full-year profits after a sticky third quarter for its Engineered Ceramics division. Shares dropped around 14.55% early on. Michael Page International, the recruitment consultant, fell after warning that full-year operating profit will be slightly below current analyst expectations in its second disappointing trading update in a row. Sector peer Hays was also lower. Traders can turn £3k into £150k – Learn how Earn a tax free income trading, from just 20 minutes a day – no experience needed Our powerful trading software will help you decide when to enter trades and how to maximise profits. Register for a FREE brochure and trading guide, Click Here. FTSE 100 - Risers Carnival (CCL) 2,361.00p +0.04% FTSE 100 - Fallers Evraz (EVR) 243.80p -4.05% Fresnillo (FRES) 1,910.00p -2.90% Vedanta Resources (VED) 1,071.00p -2.72% Weir Group (WEIR) 1,802.00p -2.70% Old Mutual (OML) 168.40p -2.32% Eurasian Natural Resources Corp. (ENRC) 325.90p -2.22% Polymetal International (POLY) 1,125.00p -2.09% IMI (IMI) 951.00p -2.06% GKN (GKN) 221.90p -1.94% Melrose (MRO) 241.70p -1.91% FTSE 250 - Risers Rank Group (RNK) 152.29p +1.87% Halfords Group (HFD) 307.40p +1.59% UK Commercial Property Trust (UKCM) 66.85p +1.29% Shanks Group (SKS) 82.10p +0.86% Bwin.party Digital Entertainment (BPTY) 117.40p +0.86% easyJet (EZJ) 623.00p +0.56% Brown (N.) Group (BWNG) 280.00p +0.54% Restaurant Group (RTN) 368.90p +0.46% Hansteen Holdings (HSTN) 78.45p +0.32% Heritage Oil (HOIL) 194.50p +0.31% FTSE 250 - Fallers Cookson Group (CKSN) 525.50p -14.55% Morgan Crucible Co (MGCR) 260.80p -6.69% Michael Page International (MPI) 350.00p -4.14% Lonmin (LMI) 529.00p -3.64% Hays (HAS) 75.90p -3.50% Ocado Group (OCDO) 66.35p -3.42% Cranswick (CWK) 765.00p -3.35% Perform Group (PER) 415.00p -3.17% Homeserve (HSV) 222.60p -2.96% UK Event Calendar Monday October 08 INTERIM DIVIDEND PAYMENT DATE Camellia, Hikma Pharmaceuticals, JPMorgan American Inv Trust, Tex Holdings QUARTERLY PAYMENT DATE Alpha Pyrenees Trust Ltd. INTERNATIONAL ECONOMIC ANNOUNCEMENTS Balance of Trade (GER) (07:00) Current Account (GER) (07:00) Harmonised Competitiveness Indicators (EU) (09:00) Industrial Production (GER) (11:00) Retail Price Index (GER) (07:00) GMS InterContinental Hotels Group FINALS Waterman Group ANNUAL REPORT Cambium Global Timberland Ltd. IMSS Hays, Michael Page International EGMS Redefine International AGMS Cambium Global Timberland Ltd., Mid Wynd International Inv Trust, Scotgold Resources (DI) TRADING ANNOUNCEMENTS Carclo Europe Market Report FTSE 100 Euronext Dax perf CAC 40 Europe mid-morning: Growth concerns weigh on stocks Asmussen (ECB): Calm on financial markets is deceptive Asmussen (ECB): Cannot give Greece more time Rehn (EU): Expects Eurogroup to give Greece its support FTSE-100: -0.60% Dax-30: -1.18% Cac-40: -1.14% FTSE Mibtel: -1.42% Ibex 35: -0.94% Stoxx 600: -0.81% European equities have begun a data-light week lower. That after the World Bank cut its growth forecast for economic growth in "developing East Asia" this year to 7.2% from 8.3% in 2011, its slowest pace since 2011 and below the 7.6% forecast in May. Furthermore, and acting as a backdrop, in its semi-annual World Economic Outlook (WEO)-slated for release tomorrow- the International Monetary Fund (IMF) is expected to cuts its forecast for world growth. This as some observers worry that "global rebalancing" is proceeding too slowly. Of more immediate concern, investors are closely watching events in Greece and Spain. More specifically, European Central Bank (ECB) governing council member Jorg Asmussen has been cited as saying that Greece cannot be given more time –by the central bank- to meet its commitments as that would amount to state financing. On a more positive note, European Comission commissioner Olli Rehn believes that the Eurogroup will show its support for Greece when it meets today. German Chancellor Angela Merkel will visit Greece tomorrow. From a sector stand-point, and on the corporate front, the best performance is now to be seen in the following industrial groups within the DJ Stoxx 600: Automobiles (1.87%), Basic resources (-1.64%) and Construction (-1.35%). German exports rise more than expected The Sentix survey of Eurozone investors´ confidence has come in at -22.2 for November (Consensus: -20.9), versus -23.2 for the month before. The Swiss consumer price index for the month of September has come in at -0.4% year-on-year, as expected, and above last month´s reading of -0.5%. The French central bank´s business confidence index for the month of September has come in at 92 points, versus 93 for the previous month (Consensus: 91). The German trade surplus for the month of August rose to €16.3bn; ahead of the €15.3bn forecast by the consensus, that on the back of a 2.4% month-on-month increase in exports (Consensus: -0.5%). Germany´s current account surplus on the other hand fell back towards €11.1bn in August, versus the €11.7bn seen in July. Swiss unemployment remained unchanged at 2.8% in September. Slight retreat in the single currency The euro/dollar is now down by 0.57% to 1.2960. Front month Brent crude futures are falling by 1.074 dollars to the 110.83 dollar mark on the ICE. US Market Report US close: Jobs fillip fades Market movers Dow Jones: +35 at 13,610 S&P 500: -0 at 1,461 NASDAQ Composite: -13 at 3,136 US stocks received a boost from better than expected US jobless figures but the fillip proved to be only temporary, as investors banked profits ahead of the third quarter earnings season. The unemployment rate fell from 8.1% to 7.8% in September compared to a market consensus estimate of 8.2%. The unemployment rate has not been this low since January 2009. Non-agricultural jobs added, a key indicator, came in at 114,000, slightly topping the 113,000 expected. Furthermore, the previous month's figure was revised higher from 96,000 to 142,000. The U6, a much broader measure of unemployment that takes into account people who have stopped looking for work, stood at 14.7% in September, unchanged from August. Government hiring recovered a little (+10,000), prompting Barclays Research to note that: "This represents the first time government sector payrolls expanded for three consecutive months since the census hiring in 2010 and signals to us that the belt-tightening of state and local governments is starting to ease [as opposed to being a one-off]." The length of the average work-week came in as expected, at 34.5 hours, while earnings per hour were actually slightly better than forecast. Barclays' view of labour market dynamics differs markedly from the Fed and other economic forecasters. "Our view is that demographic and other factors mean that the economy needs to generate only 75-100k jobs a month to keep the unemployment rate steady," analysts at the bank said. Less of a zinger Zynga, the fading social network gaming giant, plummeted after the company lowered its full-year forecast. This had a knock-on effect on Facebookm which derives a healthy chunk of revenue from Zynga's customers. A negative research note out from analysts at JP Morgan on Facebook did not help matters for the social networking phenomenon. Wine merchant Constellation Brands, on the other hand, rose following its quarterly results. Post-tax profits were down 23% year-on-year but were higher than the market had been expected. Avon scrubs up well Shareholders in cosmetics firm Avon had their happy faces on as executive Chairman Andrea Jung announced she would be quitting the job sooner than expected, packing away her make-up bag for the last time at the end of this year. She will be replaced by Avon board member Fred Hassan, the former boss of Schering-Plough, the pharmaceutical group that is now part of Merck. Analysts at Oppenheimer have downgraded biotechnology company Biogen to "neutral", from "outperform". Meanwhile, Sterne Agee has lowered its view on PC and laser printer maker Hewlett Packard to "neutral" from "buy". Crude futures at lowest level in a week West Texas intermediate for November delivery fell $1.83 to $89.98 a barrel on the New York Mercantile Exchange (NYMEX). Gold futures also took the low road. The December contract tumbled $15.70 to $1,780.80 an ounce. The US jobs data sapped enthusiasm for bonds. The yield on 10-year US Treasuries dipped to 1.74% from 1.76% overnight, having fallen as low as 1.71% in the morning session. S&P 500 - Risers Avon Products Inc. (AVP) $17.39 +7.21% Owens-Illinois Inc. (OI) $20.21 +4.39% Constellation Brands Inc. Class A (STZ) $36.20 +4.26% Genworth Financial Inc. (GNW) $5.39 +3.45% GameStop Corp. (GME) $23.08 +3.17% Sealed Air Corp. (SEE) $15.91 +3.11% Monster Beverage Corp (MNST) $57.03 +2.98% Eastman Chemical Co. (EMN) $59.13 +2.83% Lowe's Companies Inc. (LOW) $31.77 +2.65% Dollar Tree Stores Inc. (DLTR) $48.07 +2.60% S&P 500 - Fallers First Solar Inc. (FSLR) $20.07 -11.00% Chipotle Mexican Grill Inc. (CMG) $280.93 -4.45% Citrix Systems Inc. (CTXS) $71.57 -4.13% F5 Networks Inc. (FFIV) $103.43 -3.72% MeadWestvaco Corp. (MWV) $30.45 -2.40% Nvidia Corp. (NVDA) $13.30 -2.35% Alpha Natural Res (ANR) $6.58 -2.23% Valero Energy Corp. (VLO) $31.89 -2.21% Range Resources Corp. (RRC) $69.03 -2.18% Apple Inc. (AAPL) $652.59 -2.13% Dow Jones I.A - Risers Home Depot Inc. (HD) $63.20 +2.36% Boeing Co. (BA) $70.89 +1.36% E.I. du Pont de Nemours and Co. (DD) $50.35 +1.21% Dow Jones I.A - Fallers Hewlett-Packard Co. (HPQ) $14.73 -1.41% AT&T Inc. (T) $37.86 -1.25% Nasdaq 100 - Risers Monster Beverage Corp (MNST) $57.03 +2.98% Dollar Tree Stores Inc. (DLTR) $48.07 +2.60% Dell Inc. (DELL) $9.66 +2.06% Whole Foods Market Inc. (WFM) $101.19 +1.67% Apollo Group Inc. (APOL) $29.10 +1.54% Lam Research Corp. (LRCX) $32.26 +1.51% Flextronics International Ltd. (FLEX) $6.11 +1.50% Maxim Integrated Products Inc. (MXIM) $27.79 +1.13% Ross Stores Inc. (ROST) $66.10 +1.07% Automatic Data Processing Inc. (ADP) $59.53 +1.07% Nasdaq 100 - Fallers Green Mountain Coffee Roasters Inc. (GMCR) $22.13 -6.36% Citrix Systems Inc. (CTXS) $71.57 -4.13% F5 Networks Inc. (FFIV) $103.43 -3.72% Nvidia Corp. (NVDA) $13.30 -2.35% Apple Inc. (AAPL) $652.59 -2.13% Infosys Technologies Ltd. (INFY) $48.75 -1.81% Oracle Corp. (ORCL) $31.39 -1.58% Expedia Inc. (EXPE) $57.60 -1.57% eBay Inc. (EBAY) $48.73 -1.54% NetApp Inc. (NTAP) $30.59 -1.45% FX and Commodities round-up FX round-up: Dollar boosted by job data The dollar rallied to a two-week high against the yen on Friday following better than expected US job figures. The greenback rose to an intra-day high of ¥78.87 before later trading at ¥78.65 a day after the Bank of Japan left its asset-purchase programme and interest-rate target unchanged. The central bank is under increasing pressure from the government to stimulate growth. Meanwhile the US unemployment rate fell from 8.1% to 7.8% in September compared to market forecasts of 8.2%. The economy also created a bigger than expected 114,000 non-farm jobs in September. The ICE dollar index, which measures the US currency against a basket of six other currencies, traded at a low of 79.351 before later trading at around 79.376. For the week it was down around 0.7%. The euro changed hands at $1.3032 from $1.3016 on Thursday and over the week rose 1.3%. Hopes that Spain will ask for a bailout soon buoyed the single currency and stock markets on Friday. Sterling fell to $1.6142 from $1.6189 on Thursday and fell to a two-week low against the euro after the US employment figure. The Australian dollar traded at $1.0177 from $1.0243 previously. Commodities: Crude at lowest level in a week Crude oil futures settled at their lowest level in a week on Friday as cheer about the better than expected US jobs data petered out and focus turned to concern about oil demand. Oil prices rallied ahead of the Labor Department's report, which said the unemployment rate fell from 8.1% to 7.8% in September compared to market forecasts of 8.2%. The economy created a bigger than expected 114,000 non-farm jobs in September. Crude for November delivery rose to just over $90 a barrel following the data but enthusiasm wore out quickly and crude oil later declined $1.83 to settle at $89.88 a barrel on the New York Mercantile Exchange. Crude had soared over 4% on Thursday as traders moved in on recent losses and as concern about supplies from the Middle East stirred up interest. Gasoline for November rose 1 cent to $2.95 a gallon after a handful of refineries in California shut down earlier this week following a power outage. On the ICE Futures exchange Brent crude fell 56 cents or 0.5% at $112.02 a barrel. Among precious metals gold settled 0.9% lower on Friday after the stronger than expected US jobs data. The data reduces the need for added financial stimulus, something that has boosted bullion prices recently. Gold for December delivery fell $15.70 to settle at $1,780.80 an ounce on the Comex division of the New York Mercantile Exchange. Silver for December fell 53 cents to $34.57 an ounce while December copper gave up earlier gains to close down 1 cent to $3.78 a pound. Palladium and platinum also lost their allure with both metals down 1.7% and 1%, respectively.