London open: Stocks fall ahead of key US jobs data
Market Movers
- techMARK 2,105.42 -0.23%
- FTSE 100 5,852.66 -0.16%
- FTSE 250 12,104.81 +0.11%
The FTSE 100 opened slightly lower on Friday morning following a strong
rise the day before, as investors showed caution ahead of some pivotal
economic data due out across the Pond later today.
Financial trader Shavaz Dhalla from Spreadex said that investors are nervous about taking on too much risk ahead of the "market-moving US non-farm report" due out at 13:30 London time.
Dhalla said: "The current US president as well as candidate for the
presidential position will also be keenly eyeing the jobs figure. The
consensus for the change in the number of employed people is 123,000.
"However, a figure which comes in below expectations will not only
prove damaging for investors' confidence in the global recovery but
could act as sufficient ammunition for the leading presidential
candidate to launch an offensive on the failures of the current US
president's measures to stimulate growth."
FTSE 100: Admiral and Meggitt disappoint with Q3 results; RBS subdued
Car insurance firm Admiral
dropped after seeing a 2% decrease in third-quarter turnover. "Little
has changed since the half year. The UK car insurance market is cyclical
and we are in the softer part of the cycle with premium rates coming
down," said Chief Executive Henry Engelhardt.
Aerospace, defence and energy components group Meggitt
was unwanted after saying that organic revenues were flat year-on-year
and revenue growth will be in the mid-single digits in 2013.
Banking giant RBS
was little changed after reporting a statutory loss before tax of
£1.26bn for the three months to September 30th after taking a £1.46bn
charge in own-credit adjustments and a £400m bill for PPI redress.
Investec maintained its 'sell' rating for the stock this morning, saying
that it had expected a loss of £1.0bn.
Oil giant Tullow was a high riser after JPMorgan Cazenove upgraded its stance on the shares to 'overweight'. In contrast, engineering giant Weir was under the weather after Jefferies cut its rating to 'hold' and supermarket group Morrisons fell after Morgan Stanley downgraded the stock to 'underweight'.
FTSE 250: Bumi gained on appointment of Rothschild Group
Mining group Bumi
advanced after saying it has appointed Rothschild Goup as its financial
adviser with immediate effect to evaluate the proposal received from
Long Haul Holdings.
Hotels group Millennium & Copthorne fell despite seeing RevPAR rise 2.6% in the third quarter, with London enjoying an Olympic boost.
Hikma Pharmaceuticals
dropped after saying that it has opted to halt commercial production of
generic drugs at Eatontown facility in the US until mid-January while
it gets to grips with compliance issues raised by the Food & Drug
Administration (FDA).
Bwin.party digital entertainment,
the world's largest listed online gaming company, fell after seeing
revenues slip in the third quarter with several factors to blame,
including a better regulation and the weak economic environment in
Europe.
FTSE 100 - Risers
Aberdeen Asset Management (ADN) 341.90p +2.06%
Tullow Oil (TLW) 1,430.00p +1.63%
Schroders (SDR) 1,573.00p +1.35%
International Consolidated Airlines Group SA (CDI) (IAG) 165.40p +1.29%
IMI (IMI) 988.00p +1.13%
Rio Tinto (RIO) 3,199.00p +1.06%
Land Securities Group (LAND) 818.50p +0.92%
Burberry Group (BRBY) 1,225.00p +0.82%
CRH (CRH) 1,184.00p +0.77%
BHP Billiton (BLT) 2,023.50p +0.72%
FTSE 100 - Fallers
Admiral Group (ADM) 1,084.00p -5.08%
Pennon Group (PNN) 704.00p -1.88%
Croda International (CRDA) 2,137.00p -1.61%
GlaxoSmithKline (GSK) 1,366.00p -1.55%
Weir Group (WEIR) 1,768.00p -1.45%
Morrison (Wm) Supermarkets (MRW) 263.80p -1.38%
Royal Bank of Scotland Group (RBS) 283.90p -1.15%
Marks & Spencer Group (MKS) 391.40p -1.11%
National Grid (NG.) 704.50p -0.91%
Standard Life (SL.) 297.70p -0.90%
FTSE 250 - Risers
Bumi (BUMI) 267.00p +7.53%
Perform Group (PER) 410.00p +4.06%
Dixons Retail (DXNS) 24.23p +3.64%
Chemring Group (CHG) 268.60p +3.07%
New World Resources A Shares (NWR) 268.90p +2.67%
Ferrexpo (FXPO) 225.50p +2.59%
BBA Aviation (BBA) 208.90p +2.55%
Carpetright (CPR) 716.00p +2.51%
Daejan Holdings (DJAN) 2,925.00p +2.45%
COLT Group SA (COLT) 111.40p +2.20%
FTSE 250 - Fallers
Hikma Pharmaceuticals (HIK) 726.50p -3.65%
Centamin (DI) (CEY) 64.95p -3.20%
Millennium & Copthorne Hotels (MLC) 501.00p -2.05%
Balfour Beatty (BBY) 314.40p -2.00%
Computacenter (CCC) 362.00p -1.44%
Halfords Group (HFD) 352.10p -1.32%
Cable & Wireless Communications (CWC) 37.51p -1.29%
Telecom Plus (TEP) 840.00p -1.23%
WH Smith (SMWH) 625.50p -1.11%
UK Event Calendar
| Europe Market Report |
 |
| FTSE 100 | Euronext | Dax perf | CAC 40 |
 |  |  |  |
|
Europe open: Investors waiting on critical employment report
-Investors waiting on US employment report
FTSE-100: -0.12%
Dax-30: -0.18%
Cac-40: -0.31%
FTSE Mibtel 30: -0.52%
Ibex 35: -0.48%
Stoxx 600: -0.03%
European equities have started the day slightly lower, as traders pull
in their horns –especially following yesterday´s gains- and ahead of the
release, this afternoon, of the latest monthly employment report
Stateside.
For some any effect from Sandy will only show up in
next month´s data, so by itself that should not be a factor in next
week´s Presidential elections. However, the bad weather –should it
persist- could yet play a role. In any case, today´s data is the last
before Americans head to the polls, so even more is in play today than
usual.
Acting as a backdrop, some reports are calling attention to the recent improvement in the Baltic Dry Freight index, usually a good indicator for global commerce and growth.
Also of interest, in today´s Financial Times
James Mackintosh tells readers that recent market moves –rises led by
cyclicals- show that there is quite some optimism as regards economic
growth. In his opinion, however, that is only justified if one believes
that central banks have more ammunition left in their armouries –or not-
as Governor King has recently suggested.
Other considerations
to be taken into account by the shortest-term investors and traders are
that the last two months of the year are usually amongst the best for
equities and the still relatively ´bearish´ sentiment of small
investors, according to the latest weekly survey data out from AAII.
Alcatel burns a hole in investors´ pockets
Alcatel Lucent
is now the worst performer on the Stoxx 600, following its latest
results. The company has burned through half a billion euros in cash
during the latest reporting period.
Deutsche Telekom is considering slashing its dividend by up to a third from 2013 onwards, German business daily Handelsblatt has reported.
Beiersdorf, the maker of Nivea, has increased its revenue outlook for the year.
The best performance in the DJ Stoxx 600 is now to be seen in the
following industrial groups: personal and household goods (0.59%),
automobiles (0.53%) and basic resources (0.48%).
Eurozone PMI slightly ahead of forecasts
The Markit Eurozone purchasing managers index for the month of October
has come in 45.4, versus last month´s reading of 46.1 (Consensus: 45.3).
The Markit German purchasing managers index for the month of October
has come in 46, versus last month´s reading of 47.4 (Consensus: 45.7).
The Markit French purchasing managers index for the month of October
has come in 43.7, versus last month´s reading of 42.7 (Consensus: 43.5). Single currency dropping towards technical support ahead of data
The euro/dollar is now down by 0.53% to the 1.2878 dollar level.
Front month Brent crude futures are off by 0.399 dollars to the 107.74 dollar mark in ICE trading. |
| US Market Report |
US close: Stocks rise on positive economic indicators
Dow 13,233 +137
Nasdaq 3,020 +43
S&P 500 1,428 +16
US stocks moved firmly on Thursday, getting November off to a positive
start following a set of broadly positive economic indicators ahead of
Friday's monthly employment report.
As an aside, and as regards the impact of Sandy, Credit Suisse
today told clients that: "While the event is certainly traumatic for
those living through it, we think the overall impact on economic
activity is likely to be small. After Katrina, which was a much bigger
disaster, the stock market actually rose by 2% in the two weeks after
the event. US reinsurers have typically outperformed in the 12-month
period after major natural disasters on the back of improvements in
pricing - however, given that natural catastrophe losses overall this
year have been mild, this might not happen this time."
All of the above ahead of tomorrow´s all important monthly employment report.
Ironically, if Sandy does have an effect on the recollection of data
for the same it should not be evident until the following month -and
after the elections- some are saying.
The October ISM
manufacturing sector purchasing managers index (PMI) came in at 51.7
points, versus the 51 expected by the consensus. The new orders
sub-index rose to 54.2 from 52.3. Even so, the Chair of the relevant
survey Committee, Bradley J.Holcomb, has said that the rise seen in new orders is deceitful.
The Conference Board´s consumer confidence index for October came in at
72.2, below the 73 forecast. However, the previous month´s estimate has
been revised down to 68.4 from 70.3. Also worth noting was that the bulk of the rise came from the current situation sub-index, which is a moderately negative aspect of the report.
The ADP employment report showed 158,000 jobs were created in October (Consensus: 135,000).
Markit´s US manufacturing sector purchasing managers´ index (PMI) came
in at 51 for October, after 51.3 for the month before (Consensus: 51.3).
This release is not to be confused with the much better known PMI from
the Institute for Supply Management (PMI). Company news
Netflix,
the video-streaming and film rental group, settled back down after
Wednesday's announcment that a 10% stake in the company had been
purchased by Carl Icahn.
Costco shares were also lower
despite the retailer saying its same store sales had risen 7% and its
monthly sales were up 9% on the previous year.
Meanwhile, Abercrombie & Fitch shares leapt after Cowen and Co gave an outperform rating on the stock.
Following Hurrica Sandy, the home improvement sector is expected to
benefit as homeowners make repairs to their damanged properties, sending
shares in Masco Corp. almost 7% higher.
The best performing sectors were: Coal (4.97%), Iron&Steel (4.89%) and Non-ferrous metals: (4.26%).
And the data storm continued...
Unemployment claims fell by 9,000 to 363,000 (Consensus: 370,000). Nevertheless, and as a possible note of caution, data from New Jersey and Washington DC had to be estimated due to Sandy.
The number of job cut announcements reached 47,724 in October, versus 33,800 for the month before, according to consultancy Challenger.
Unit labour costs dropped by 0.1% in the third quarter (Consensus: 0.8%).
Construction spending
increased by 0.6% month-on-month (Consensus: 0.7%) in September, while
the previous month´s reading has been revised notably higher.
Notable rise in crude futures as well
Front month West Texas crude futures settled 0.99% higher at $87.09 on the NYMEX.
10-year US Treasuries were falling by 10/32 dollars, with yields at 1.73% at the close.
S&P 500 - Risers
VeriSign Inc. (VRSN) $41.15 +11.01%
Abercrombie & Fitch Co. (ANF) $33.23 +8.67%
JDS Uniphase Corp. (JDSU) $10.45 +7.79%
Fossil Inc. (FOSL) $93.88 +7.78%
Tenet Healthcare Corp. (THC) $25.40 +7.63%
Masco Corp. (MAS) $16.13 +6.89%
Micron Technology Inc. (MU) $5.78 +6.64%
Macy's Inc. (M) $40.52 +6.44%
Sandisk Corp. (SNDK) $44.16 +5.70%
United States Steel Corp. (X) $21.55 +5.69%
S&P 500 - Fallers
Teradata Corp. (TDC) $63.75 -6.68%
Ross Stores Inc. (ROST) $57.13 -6.27%
Exelon Corp. (EXC) $33.58 -6.15%
Tesoro Corp. (TSO) $36.18 -4.06%
Williams Companies Inc. (WMB) $33.69 -3.72%
Western Union Co. (WU) $12.27 -3.61%
TripAdvisor Inc. (TRIP) $29.41 -2.91%
Public Service Enterprise Group Inc. (PEG) $31.14 -2.81%
Plum Creek Timber Co. (PCL) $42.79 -2.53%
Newmont Mining Corp. (NEM) $53.22 -2.49%
Dow Jones I.A - Risers
Bank of America Corp. (BAC) $9.74 +4.51%
Microsoft Corp. (MSFT) $29.51 +3.42%
Caterpillar Inc. (CAT) $87.65 +3.35%
Intel Corp. (INTC) $22.26 +2.91%
JP Morgan Chase & Co. (JPM) $42.84 +2.78%
Alcoa Inc. (AA) $8.75 +2.10%
Cisco Systems Inc. (CSCO) $17.50 +2.10%
3M Co. (MMM) $89.25 +1.88%
American Express Co. (AXP) $56.85 +1.57%
AT&T Inc. (T) $35.09 +1.45%
Dow Jones I.A - Fallers
Wal-Mart Stores Inc. (WMT) $73.45 -2.09%
Pfizer Inc. (PFE) $24.55 -1.29%
Travelers Company Inc. (TRV) $70.23 -1.00%
McDonald's Corp. (MCD) $86.80 -0.00%
Nasdaq 100 - Risers
VeriSign Inc. (VRSN) $41.15 +11.01%
Research in Motion Ltd. (RIMM) $8.70 +9.78%
Green Mountain Coffee Roasters Inc. (GMCR) $26.34 +8.95%
Fossil Inc. (FOSL) $93.88 +7.78%
Micron Technology Inc. (MU) $5.78 +6.64%
Sandisk Corp. (SNDK) $44.16 +5.70%
Electronic Arts Inc. (EA) $13.00 +5.26%
Nvidia Corp. (NVDA) $12.55 +4.80%
KLA-Tencor Corp. (KLAC) $48.72 +4.65%
Vertex Pharmaceuticals Inc. (VRTX) $50.48 +4.56%
Nasdaq 100 - Fallers
Ross Stores Inc. (ROST) $57.13 -6.27%
Netflix Inc. (NFLX) $77.69 -1.96%
Costco Wholesale Corp. (COST) $97.13 -1.32%
Virgin Media Inc. (VMED) $32.49 -0.81%
Whole Foods Market Inc. (WFM) $94.46 -0.35%
Perrigo Company (PRGO) $114.55 -0.32%
Amazon.Com Inc. (AMZN) $232.14 -0.32%
Intuitive Surgical Inc. (ISRG) $540.96 -0.23%
Randgold Resources Ltd. Ads (GOLD) $119.52 -0.06%
Apollo Group Inc. (APOL) $20.07 -0.05% |
| FX and Commodities round-up |
FX round-up: Dollar climbs on mixed US data
The
dollar rose slightly higher on Thursday following mixed US economic
reports, which included jobless data and consumer confidence.
The ICE dollar index, which measures the greenback against a basket of
six other major currencies, climbed from 79.903 on Wednesday to 80.052
last night.
The WSJ dollar index, which measures the currency
against a slightly broader selection, rose to 70.04 on Thursday evening,
from 69.94 last the previous evening.
The October ISM
manufacturing sector purchasing managers index (PMI) has come in at 51.7
points, versus the 51 expected by the consensus. The new orders
sub-index rose to 54.2 from 52.3. Even so, the Chair of the relevant
survey Committee, Bradley J.Holcomb, has said that the rise seen in new orders is deceitful.
The Conference Board´s consumer confidence index for the month of
October has come in at 72.2, below the 73 forecast. However, the
previous month´s estimate has been revised down to 68.4 from 70.3. Worth
noting as well, the bulk of the rise came from the current situation sub-index, which is a moderately negative aspect of the report.
Markit´s US manufacturing sector purchasing managers´ index (PMI) has
come in at 51 for October, after 51.3 for the month before (Consensus:
51.3). This release is not to be confused with the much better known PMI
from the Institute for Supply Management (PMI).
Initial weekly unemployment claims fell by 9,000 to 363,000 (Consensus: 370,000). Nevertheless, and as a possible note of caution, data from New Jersey and Washington DC had to be estimated due to Hurricane Sandy.
Following this, the euro declined to $1.2941 from $1.2962, while the
pound traded at $1.6127, compared to $1.6134 the previous day.
Commodities: Crude oil boosted by supply decline
Front-month
crude oil futures got an unexpected boost on Thursday after week supply
data showed a decline, with positive economic data from China also
playing a role.
The HSBC Chinese manufacturing sector
purchasing managers' index for the month of October rose to 49.5, from
47.9 in the month before, according to survey compiler Markit. This was
an eight-month high and not far from the key level of 50 which indicates
that the sector contraction has ceased. The consensus estimate was for
49.1.
The December contract for the commodity gained 0.99% to settle at $87.09 per barrel on the New York Mercantile exchange.
Things were also looking positive for unleaded gas, which climbed 0.13%
to $2.63 per gallon, while natural gas rose 0.19% to end the day at
$3.70 per million British thermal units.
Heating oil was the notable exception, down 0.95% to $3.03 per gallon.
In metals, gold dropped by 0.21% to settle at $1,715.50 per troy ounce on the December contract.
Silver was also lower, also down 0.21% to $32.25 per troy ounce, while
platinum dipped 0.24% to $1,573.20. Copper bucked the trend to end the
day 0.98% higher at $3.55 per pound.
|
|
No comments:
Post a Comment