ADVFN III Morning Euro Markets Bulletin -November 27th, 2012-.

ADVFN III Morning Euro Markets Bulletin

Daily world financial news

Tuesday, 27 November 2012

London Market Report

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

London open: Footsie gains after Greek deal Market Movers techMARK 2,073.11 +0.41% FTSE 100 5,817.77 +0.54% FTSE 250 11,882.84 +0.33% Banks and mining stocks were providing a lift to equity markets on Tuesday morning as risk appetite increased on the back of last night's Greek bailout deal. After countless delays, Eurozone finance ministers finally inked out an agreement on Greece, giving the green light to the disbursement of the next €43.7bn bailout tranche to the bailed out country (€34.4bn will be issued next month and the remaining monies will be disbursed in the first quarter of 2013). Athens has committed to reduce its debt load by €40bn with the debt target set to 124% of GDP by 2020, compared to the previous 120%. Although the new goal is less ambitious than earlier IMF demands, Greece has promised to bring its debt below 110% by 2022. "While a watered down deal was more or less expected (and therefore is already to a huge degree priced into share prices), at the same time this agreement/compromise does remove a substantial amount of uncertainty, especially as Greece's membership in the euro for the next few months is concerned," said Markus Huber, head of German HNW trading at ETX Capital. "Therefore although positive for the markets, upside potential should be limited instead the next big hurdle for the markets will be the fast approaching fiscal cliff in the US with attention expected to quickly shift to negotiations between Democrats and Republicans," he said. FTSE 100: Banks and miners in demand Banking peers Royal Bank of Scotland, Lloyds and Barclays were registering decent gains early on, along with resource groups EVRAZ, ENRC and Polymetal as investors built positions in 'riskier' assets. RBS was benefitting this morning from an rating upgrade by UBS to 'buy'. Meanwhile, Barclays Capital raised its target for both RBS and Lloyds, helping provide a lift to shares. In contrast, Aberdeen Asset Management was among the worst performers of the morning after Citigroup downgraded its recommendation for the stock to 'neutral'. Mining giant Xstrata gained after saying that its Antapcaccay mine in southern Peru started producing commercial grade copper at the start of the month and has already delivered its first shipment to customers. Utilities group Severn Trent fell after underlying profit before interest and tax fell 2.6% in the first half, reflecting planned increased investment in networks and customers service in its water division. Vodafone, the telecoms giant involved in the development of the M-Pesa service in Africa, rose after announcing that from Tuesday 27th the service's Kenyan customers will have access to interest bearing saving accounts and have the ability to take out small loans through a new service, called M-Shwari. FTSE 250: KCOM and Mitchells & Butler disappoint Broadband and communications provider KCOM fell after reporting a slight fall in revenue and a large rise in net debt in the first half, its first increase in net debt in four years following seven consecutive six-month periods of reduction. Mitchells & Butlers, the UK's largest operator of managed restaurants and pub, was unwanted after noting it had made a slow start to the new financial year, partly because of unseasonably warm weather in the same period in 2011. British defence-equipment maker Chemring, which scaled back full-year profit guidance earlier this month, surged this morning after saying that expectations for the full year remain unchanged since its last update. Bank note printer De La Rue gained after reporting that both revenues and profits were up in the first half. However, the compay noted a more challenging paper market as competitors upped production. Materials science firm Cookson Group rose after saying it expects the demerger of its Performance Materials division will become effective next month, after shareholders voted in favour of the shake-up at Monday's annual general meeting.

FTSE 100 - Risers
Royal Bank of Scotland Group (RBS) 294.80p +3.40%
Evraz (EVR) 244.50p +2.69%
Aviva (AV.) 349.30p +2.16%
Lloyds Banking Group (LLOY) 46.03p +2.07%
Standard Life (SL.) 311.30p +1.70%
Polymetal International (POLY) 1,091.00p +1.58%
International Consolidated Airlines Group SA (CDI) (IAG) 172.80p +1.41%
Vedanta Resources (VED) 1,080.00p +1.41%
Compass Group (CPG) 726.50p +1.40%
Schroders (SDR) 1,603.00p +1.39%

FTSE 100 - Fallers
ITV (ITV) 96.00p -0.83%
Severn Trent (SVT) 1,551.00p -0.32%
Aberdeen Asset Management (ADN) 335.00p -0.30%
Petrofac Ltd. (PFC) 1,590.00p -0.25%
National Grid (NG.) 713.00p -0.14%
RSA Insurance Group (RSA) 114.80p -0.09%
Pearson (PSON) 1,183.00p -0.08%
Standard Chartered (STAN) 1,436.50p -0.07%
Kingfisher (KGF) 276.10p -0.04%
BT Group (BT.A) 226.80p -0.04%

FTSE 250 - Risers
Kenmare Resources (KMR) 33.27p +4.92%
Chemring Group (CHG) 241.00p +4.78%
Savills (SVS) 433.50p +2.85%
Informa (INF) 415.00p +2.34%
Dialight (DIA) 1,107.00p +2.12%
Yule Catto & Co (YULC) 171.10p +1.85%
St. Modwen Properties (SMP) 216.00p +1.84%
Supergroup (SGP) 595.00p +1.71%
ICAP (IAP) 295.80p +1.65%
Ferrexpo (FXPO) 211.80p +1.63%

FTSE 250 - Fallers
KCOM Group (KCOM) 69.00p -3.23%
IP Group (IPO) 108.20p -2.79%
Mitchells & Butlers (MAB) 322.50p -2.57%
Rank Group (RNK) 145.90p -2.21%
COLT Group SA (COLT) 103.00p -1.53%
Brown (N.) Group (BWNG) 351.20p -1.35%
Ruspetro (RPO) 85.00p -1.33%
Cable & Wireless Communications (CWC) 34.50p -1.15%
Perform Group (PER) 389.90p -1.04%

UK Event Calendar

Europe Market Report

FTSE 100 Euronext Dax perf CAC 40

Europe open: Eurogroup achieves breakthrough -Eurogroup reaches agreement on Greece -Greek 10 year bond yields fall 17bp to 16.45 per cent -Banks deposited 245.2bn euros overnight at ECB FTSE-100: 0.47% Dax-30: 0.61% Cac-40: 0.61% FTSE-Mibtel 30: 0.61% Ibex 35: 0.47% Stoxx 600: 0.49% The main Eurozone equity benchmarks began today's session with moderate gains following the breakthrough achieved at last night's meeting of Eurozone finance ministers, the so-called Eurogroup. While the 'deal' was short on specifics –according to some 'market chatter'- at first glance it seems quite ambitious, in the positive sense of the word. The assembled ministers agreed to lower the country's stock of debt to below 124% of gross domestic product (GDP) by 2020. Furthermore, they agreed to bring Athens's mountain of liabilities to "substantially lower" than 110% of GDP in 2022. The upshot of the aforementioned was that Greece would now be able to receive the next €44bn of aid that it needs. Amongst the measures agreed on to achieve the above were: reductions on the interest-rate paid on loans to Athens, the European Central Bank (ECB) returning the profits earned on its holdings of Greek debt and, possibly, a buyback of Greek debt at sharply discounted prices. As well, the deal also eases Greece's financing needs by delaying debt repayments by 15 years and interest payments by 10 years. Carrefour planning foray into China French spirits maker Remy Cointreau unveiled first-half operating profits from continuing operations of €141.5m, ahead of consensus estimates. French supermarkets group Carrefour is higher on reports that it is to move into the Chinese market. From a sector stand-point the best performance on the DJ Stoxx 600 is now to be seen in the following groups of stocks: Tecnology (0.84%), Basic resources (0.82%) and Insurance (0.79%). French consumers hold up INSEE's French consumer confidence gauge for the month of November has come in at 84, the same as last month (Consensus: 83). Italian hourly wages rose by 0.2% month-on-month in October, following a gain of 0.1% in the previous month. Slight gains in single currency The euro/dollar is now falling by 0.16% to the 1.2973 dollar mark. Front month Brent crude futures are now rising by 0.054 dollars to the 110.99 dollar mark on the ICE. US Market Report US close: Eurozone news flow butresses gains -Mc.Graw Hill to sell education unit for $2.5bn -Goldman Sachs added Yahoo to Conviction Buy list -Citi started Apple at buy Dow Jones Industrial: -0.33% Nasdaq Composite: 0.33% S&P 500: -0.20% The main US equity market averages finished the day in slightly mixed fashion, with a Bloomberg report that the European Central Bank might be willing to give up its profits on Greek debt widely credited as lying behind the better tone of trading seen in the last half the session. The above came on the heels of the large bounce-back seen in share prices last week and with investors fixated on the resumption of negotiations between Democrats and Republicans over the impending "fiscal cliff". In this regard, prominent figures from both sides of the aisle were heard over the weekend arguing in favour and against raising taxes, despite which equity strategists continue to expect an agreement to be forthcoming before Christmas. Shares of film studio DreamWorks Animation were fell sharply after a poor performance for its "Rise of the Guardians" film over the Thanksgiving weekend. Knight Capital Group flew higher after a person with direct knowledge of the matter said the trading firm expects to receive a takeover proposal. As sometimes occurs on Mondays, 'merger and acquisition' activity picked up. Foremost amongst these deals, Mc.Graw Hill announced that it would sell its education unit to Apollo for $2.5bn. Google unveiled the purchase of high-traffic Wi-Fi provider ICOA for $400m. Analysts at UBS upgraded their view on shares of AK Steel to neutral from sell. Goldman Sachs added shares of Yahoo to its Conviction Buy list. Citi initiated coverage of Apple with a buy recommendation. United HealthCare forecast earnings per share below consensus forecasts. From a sector stand-point the best performers were: Specialised consumer services (2.99%), Computer Hardware (2.63%) and Technology hardware (1.55%). As might be expected at this time of year, some commentators began to ask one of those eternal and recurring questions for investors. Will there be a 'Santa Claus' rally this year? Economic data slips a little The Federal Reserve Bank of Chicago's national activity index for the month of October fell to -0.56 from -0.00 in the month before. The Federal Reserve Bank of Dallas's manufacturing activity index for the month of November has come in at -2.8 (Consensus: 2.5), versus 1.8 for the previous month. Moderate fall in crude quotes 10-year US Treasury yields were falling by three basis points, to the 1.66% mark. Front month West Texas crude futures were down by 0.627 to the $87.73 per barrel mark on the NYMEX. S&P 500 - Risers Best Buy Co. Inc. (BBY) $12.48 +6.67% eBay Inc. (EBAY) $51.40 +4.88% Dell Inc. (DELL) $9.94 +4.14% First Solar Inc. (FSLR) $25.31 +3.52% E*TRADE Financial Corp. (ETFC) $8.43 +3.50% Apple Inc. (AAPL) $589.53 +3.15% Exelon Corp. (EXC) $29.32 +2.63% Hewlett-Packard Co. (HPQ) $12.74 +2.41% AGL Resources Inc. (GAS) $38.39 +2.24% Edison International (EIX) $44.43 +2.16% S&P 500 - Fallers AutoNation Inc. (AN) $39.83 -5.35% Macy's Inc. (M) $39.86 -4.48% Advanced Micro Devices Inc. (AMD) $1.87 -4.10% Nordstrom Inc. (JWN) $54.24 -4.08% Cabot Oil & Gas Corp. (COG) $48.09 -3.59% Chesapeake Energy Corp. (CHK) $17.24 -3.31% Safeway Inc. (SWY) $16.41 -3.24% Range Resources Corp. (RRC) $67.54 -3.14% Whole Foods Market Inc. (WFM) $92.15 -3.06% Coach Inc. (COH) $57.87 -3.00% Dow Jones I.A - Risers Hewlett-Packard Co. (HPQ) $12.74 +2.41% Cisco Systems Inc. (CSCO) $19.06 +1.14% Intel Corp. (INTC) $19.89 +0.84% Boeing Co. (BA) $74.27 +0.72% Caterpillar Inc. (CAT) $84.65 +0.58% E.I. du Pont de Nemours and Co. (DD) $43.35 +0.52% General Electric Co. (GE) $21.06 +0.10% United Technologies Corp. (UTX) $78.68 +0.09% Dow Jones I.A - Fallers Coca-Cola Co. (KO) $37.36 -1.50% American Express Co. (AXP) $55.69 -1.45% Microsoft Corp. (MSFT) $27.39 -1.14% AT&T Inc. (T) $33.97 -1.14% Verizon Communications Inc. (VZ) $43.30 -1.05% McDonald's Corp. (MCD) $86.24 -0.93% Johnson & Johnson (JNJ) $69.09 -0.68% Bank of America Corp. (BAC) $9.84 -0.66% Travelers Company Inc. (TRV) $70.86 -0.58% Alcoa Inc. (AA) $8.31 -0.54% Nasdaq 100 - Risers eBay Inc. (EBAY) $51.40 +4.88% Nuance Communications Inc. (NUAN) $21.57 +4.46% Dell Inc. (DELL) $9.94 +4.14% Marvell Technology Group Ltd. (MRVL) $8.35 +3.53% Apple Inc. (AAPL) $589.53 +3.15% Research in Motion Ltd. (RIMM) $11.98 +2.74% Broadcom Corp. (BRCM) $32.17 +1.87% Nvidia Corp. (NVDA) $12.10 +1.72% Green Mountain Coffee Roasters Inc. (GMCR) $28.61 +1.71% Ross Stores Inc. (ROST) $56.84 +1.66% Nasdaq 100 - Fallers Whole Foods Market Inc. (WFM) $92.15 -3.06% VeriSign Inc. (VRSN) $39.69 -2.89% Vertex Pharmaceuticals Inc. (VRTX) $40.50 -2.32% Bed Bath & Beyond Inc. (BBBY) $58.91 -2.08% Express Scripts Holding Co (ESRX) $51.29 -1.82% Costco Wholesale Corp. (COST) $96.26 -1.70% Wynn Resorts Ltd. (WYNN) $107.57 -1.61% Randgold Resources Ltd. Ads (GOLD) $105.91 -1.38% Cerner Corp. (CERN) $77.02 -1.33% Sears Holdings Corp. (SHLD) $46.91 -1.28% FX and Commodities round-up FX round-up: Dollar rises as spotlight stays on Greece The dollar picked up against major currencies on Monday while the euro pulled back as Eurozone finance ministers met for the third time to try and reach a deal on Greece's emergency aid package. The dollar index, which measures the US unit against a basket of six other currencies, rose to 80.229 compared to 80.190 on Friday as Eurozone finance ministers and the International Monetary Fund attempted to strike a deal for Greece. Uncertainty that a deal would be reached drove mild safe haven flows and sent the euro down to $1.2960 from $1.2982 on Friday. Against the yen, the single currency pulled off a seven-month high to trade at ¥106.37 compared to ¥107 in late trading on Friday. The greenback bought ¥82.17 compared to ¥82.35 the previous session after the Bank of Japan's minutes from its policy meeting at the end of October showed that two members voted for increasing the central bank's commitment to monetary easing. The yen has under pressure in recent weeks as political turmoil in Japan continues. It is widely expected that a new government will be voted in after next month's general elections paving the way for aggressive easing policy. Sterling swapped hands at $1.6016 versus $1.6041 on Friday as markets mulled the surprise appointment of Canada's Mark Carney as the next Governor of the Bank of England. Commodities: Crude dips as Gaza truce continues Crude oil futures logged a small decline on Monday, in lighter than usual trading, as tensions in the Middle East eased and as traders sat on the sidelines ahead of a meeting between Eurozone finance ministers and the IMF for an urgent Greek bailout deal. Crude for January delivery slipped 54 cents to $87.74 a barrel on the New York Mercantile Exchange. Oil prices drifted lower as the truce between Israel and Hamas continued over the weekend. Oil prices had previously pushed higher on concern that the escalating conflict would trickle into neighbouring countries such as Egypt or Syria. Meanwhile Eurozone leaders looked close to reaching a deal on a bailout for debt-laden Greece on Monday after last week's failure to strike a deal. After 10 hours of talks, finance ministers agreed to reduce Greek debts by €40bn and open the way for the country's €44bn in bailout loans. On the ICE futures exchange January Brent crude fell 49 cents at $110.92 a barrel. Among precious metals gold lost its allure on Monday, following the previous session's strong gains, as investors mulled progress on Greece's bailout and as the dollar made headway against major currencies. Bullion for December delivery lost $1.80 to settle at $1,749.60 an ounce on the Comex division of the New York Mercantile Exchange. On Friday gold rose over 1% to nearly a six-week high. January platinum fell $6.10 at $1,611 an ounce while December palladium dropped 1% at $661.20 an ounce.