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| London open: Stocks cautious ahead of German ZEW data Market Movers
The FTSE 100 index started Tuesday's session cautiously with just 12
points separating the intraday low and high in the opening hour as the
focus remains fixed on Mario Monti and 'fiscal cliff' discussions in the
US.
FTSE 100: Tullow drops on Spring acquisition, non-core disposals However, with little significant economic data scheduled for today's session, all eyes will be on the German ZEW economic sentiment index which is expected to improve from -15.7 to -11.5 in December, according to consensus estimates. However, as market analyst Michael Hewson from CMC Markets explains, this forecast could be "a little on the optimistic side given last week's growth downgrades from the ECB as well as the Bundesbank". In other news, loan growth in China came in weaker than expected at 522.9bn yuan in November, missing the 550bn yuan estimate. Markets yesterday initially started the day on the back foot after the surprise early resignation of Italian Prime Minister Mario Monti, which sparked a surge in Italian bond yields. It is now thought that his departure would prompt an early election in February. However, optimism regarding 'fiscal cliff' talks Stateside between President Barack Obama and House Speaker John Boehner boosted buying in afternoon trade, helping London's benchmark index finish with moderate gains. "European equities are trading little changed this morning, taking a breather after yesterday's impressive intra-day recovery after having successfully fended off resurfacing worries about political instability," said Markus Huber, the head of German HNW trading at ETX Capital. Oil titan Tullow was a heavy faller early on after announcing plans to buy Norwegian exploration group Spring Energy and dispose of its non-core gas assets in the North Sea. The gas assets, which currently produce around 18,000 boe per day, are said that have been "highly successful" for Tullow but given recent success in Africa (namely Ghana, Kenya and Uganda), these assets are now being classed as "non-core" and "no longer fit within Tullow's light oil-focused portfolio". Whitbread, which owns the Costa and Premier Inn chains, was a high riser after saying that it was still on track to meet full-year expectations despite a slight slowdown in group like-for-like sales in the third quarter. HSBC was lower after reaching an agreement with US authorities in relation to investigations regarding inadequate compliance with anti-money laundering and sanctions laws. HSBC will make payments totalling $1.921bn and take further action to strengthen its compliance policies and procedures. Johnnie Walker, Smirnoff and Guinness owner Diageo was in the red after saying that it has called off talks to buy tequila giant Jose Cuervo after being unable to "agree a transaction". FTSE 250: IG leads the fallers IG Group was out of favour after revealing a reduction in its revenue for the period June 1st to November 30th. Revenue in the period was £169m, 14% lower than the prior year. Revenue in the second quarter, at £87.5m, was 7% higher than the first quarter, although still 9% behind the prior year. Industrial coding, printing and marking technology group Domino Printing fell after reporting a decline in annual profit, as it battles against tough market conditions. Equipment rental group Ashtead gained as it unveiled strong first half-year results, revealing pre-tax profit had risen by 64% to £140.7m compared to £84.4m pounds in the corresponding period last year. | ||||||||||||
FTSE 100 - Risers
Whitbread (WTB) 2,502.00p +3.05%
Johnson Matthey (JMAT) 2,497.00p +1.22%
Rexam (REX) 453.80p +1.05%
United Utilities Group (UU.) 692.50p +1.02%
Pearson (PSON) 1,194.00p +1.02%
Pennon Group (PNN) 613.00p +0.99%
Polymetal International (POLY) 1,097.00p +0.92%
Severn Trent (SVT) 1,568.00p +0.84%
Compass Group (CPG) 741.00p +0.82%
CRH (CRH) 1,166.00p +0.78%
FTSE 100 - Fallers
Tullow Oil (TLW) 1,192.00p -5.10%
Eurasian Natural Resources Corp. (ENRC) 268.80p -2.68%
Kazakhmys (KAZ) 737.50p -2.19%
Diageo (DGE) 1,861.50p -1.33%
Barclays (BARC) 247.25p -0.92%
Lloyds Banking Group (LLOY) 46.44p -0.61%
Burberry Group (BRBY) 1,308.00p -0.61%
Wolseley (WOS) 2,834.00p -0.60%
Standard Chartered (STAN) 1,488.50p -0.60%
Antofagasta (ANTO) 1,350.00p -0.59%
FTSE 250 - Risers
Redrow (RDW) 162.60p +2.65%
Ashtead Group (AHT) 400.10p +2.46%
Imagination Technologies Group (IMG) 439.40p +2.35%
Carpetright (CPR) 680.00p +2.03%
Shanks Group (SKS) 77.90p +1.83%
F&C Asset Management (FCAM) 97.90p +1.82%
Premier Farnell (PFL) 185.40p +1.76%
Salamander Energy (SMDR) 176.30p +1.73%
African Barrick Gold (ABG) 416.90p +1.68%
Dechra Pharmaceuticals (DPH) 608.50p +1.59%
FTSE 250 - Fallers
Domino Printing Sciences (DNO) 586.50p -3.85%
IG Group Holdings (IGG) 424.30p -2.86%
Victrex (VCT) 1,604.00p -1.96%
ITE Group (ITE) 228.00p -1.72%
Stobart Group Ltd. (STOB) 97.00p -1.62%
FirstGroup (FGP) 185.00p -1.60%
Stagecoach Group (SGC) 300.60p -1.54%
COLT Group SA (COLT) 96.05p -1.54%
Bank of Georgia Holdings (BGEO) 1,011.00p -1.37%
UK Event Calendar
Tuesday December 11INTERIMS
Ashtead Group, Carpetright, International Greetings, Ishaan Real Estate
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
ZEW Survey (EU) (10:00)
ZEW Survey (GER) (10:00)
Q2
Ashtead Group
GMS
Baronsmead VCT, Baronsmead VCT 2, Baronsmead VCT 3
FINALS
Domino Printing Sciences, Terrace Hill Group, Victrex, Zytronic
IMSS
Whitbread
AGMS
Billing Services Group Ltd., Edinburgh Dragon Trust, Tristel
TRADING ANNOUNCEMENTS
ASOS, Go-Ahead Group, IG Group Holdings, Whitbread
UK ECONOMIC ANNOUNCEMENTS
Balance of Trade (09:30)
FINAL DIVIDEND PAYMENT DATE
Interior Services Group
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| Europe open: Stocks steady despite periphery news-flow
-Confindustria lowers Italian 2013 GDP view
Large drops in KBC and Thyssen Krupp-RWI cuts German growth view -Mixed nesflow out of the Eurozone periphery -10 year Spanish bond yields down by 2 basis points to 5.55 per cent FTSE-100: 0.00% Dax-30: 0.33% Cac-40: 0.50% FTSE-Mibtel 30: 0.43% Ibex 35: 0.04% Stoxx 600: 0.06% The main European equity benchmarks began Tuesday morning trading slightly lower. That following the slight gains seen on Wall Street and despite the somewhat weaker than expected money supply and bank lending figures out in China overnight. The news-flow out of the Eurozone's periphery this morning is somewhat mixed as well. Thus, there are reports that Greece is very close to meeting its debt buy-back targets, while the Spanish region of Catalonia has informed the central government in Madrid that it will not meet this year's fiscal targets. Despite the above, periphery debt markets are holding steady ahead of this morning's release of the German ZEW economic sentiment index for the month of December and the results of a Spanish Treasury bill auction. Acting as a backdrop, today sees the start of two day meetings at the US Federal Reserve and OPEC. Shares in Belgian lender KBC Groep are moving lower after raising €1.25bn via a share sale. That was necessitated by the need to maintain capital reserves while accelerating reimbursements of state aid. The firm sold 58.8m shares at €21.25 apiece. Germany's biggest steel maker ThyssenKrupp is lower after announcing that its net loss widened to €4.7bn in the year ended September 30th from €1.29bn euros a year ago. It has also cancelled its annual dividend. From a sector stand-point the best performance on the DJ Stoxx 600 is now to be seen in the following groups of shares: Utilities (0.86%), Travel&Leisure (0.69%) and Automobiles (0.73%). Italian 2013 GDP forecasts lowered Germany's ZEW Economic institute will release its economic sentiment index for the month of December at 10:00. Italian business lobby Confindustria has lowered its forecast for the country's economic growth rate in 2013 to -1.1% from -0.6% before. Small gains in the euro and in crude futures The euro/dollar is now rising again, by 0.12%, to the 1.2957 dollar mark. Front month Brent crude futures are now rising by 0,620 dollars to the 108.20 dollar mark on the ICE. |
| US Market Report |
| US close: Stocks manage to finish in the blue
- Both political parties refuse to comment on weekend contacts
- Gap led falls on S&P 500 Dow Jones Industrials: 0.11% Nasdaq Composite: 0.30% S&P 500: 0.07% The main US equity benchmarks registered slight gains after investors successfully 'brushed off' the bad news out of Italy over the weekend. Mario Monti's resignation as Italian Prime Minister initially dented market sentiment across the globe on Monday, and Wall Street was no exception at the start of the day. Back in US news, markets digested reports of an unscheduled face-to-face meeting yesterday between President Barack Obama and House Speaker John Boehner to discuss the 'fiscal cliff'. Yet both sides declined to comment on the result of those contacts. "Negotiations over the fiscal cliff are going nowhere and with only three weeks now until the deadline, investors are getting jittery. While a deal is expected to be completed, it is entirely understandable that people are slowly but surely taking their money out of stocks," said market analyst Craig Erlam from Alpari. Shares of fashion retailer Gap led fallers on the S&P 500 for a good part of the day, as analysts feared that the company is accumulating unwanted stock. Priceline.com also fared poorly after Deutsche Bank downgraded the shares to neutral from buy. In company news, McDonald's stock made gains after November sales rose 2.4%, much better than the 0.2% increase expected by analysts. Sales in Europe, Asia, Africa and the Middle East all managed to beat consensus estimates. From a sector stand-point the best performers on the NYSE were: Coal (2.54%), Tires (2.18%) and Mining (2.08%). Analysts at Jefferies lowered their price target on shares of Apple on Monday. Insurance group AIG announced plans to offload an 80% interest of International Lease Finance Corp., its aircraft leasing unit, for $4.2bn. Front month West Texas crude futures edged higher by 0.11% to the 85.65 dollar mark on the NYMEX. 10 year US Treasury yields are now falling by 1 basis point to the 1.61% mark. S&P 500 - Risers Alpha Natural Res (ANR) $9.10 +9.77% Cliffs Natural Resources Inc. (CLF) $30.86 +4.57% Micron Technology Inc. (MU) $6.67 +3.65% Quanta Services Inc. (PWR) $26.92 +3.46% Nvidia Corp. (NVDA) $12.36 +3.39% Best Buy Co. Inc. (BBY) $12.39 +3.34% Allegheny Technologies Inc. (ATI) $27.54 +3.22% Tesoro Corp. (TSO) $40.88 +3.10% Teradyne Inc. (TER) $16.33 +3.09% Mylan Inc. (MYL) $28.02 +2.79% S&P 500 - Fallers Priceline.Com Inc. (PCLN) $625.96 -5.03% Brown Forman Corp. Class B (BF.B) $65.53 -4.43% Expedia Inc. (EXPE) $57.71 -3.62% Gap Inc. (GPS) $30.89 -2.89% Metropcs Communications Inc. (PCS) $10.24 -2.66% VF Corp. (VFC) $148.65 -2.59% D. R. Horton Inc. (DHI) $18.40 -2.39% Federated Investors Inc. (FII) $19.80 -2.37% Coach Inc. (COH) $56.32 -2.29% American International Group Inc. (AIG) $33.36 -2.26% Dow Jones I.A - Risers Cisco Systems Inc. (CSCO) $19.79 +2.35% Microsoft Corp. (MSFT) $26.94 +1.83% Hewlett-Packard Co. (HPQ) $14.16 +1.58% Mondelez International Inc. (MDLZ) $25.94 +1.41% Boeing Co. (BA) $75.53 +1.19% McDonald's Corp. (MCD) $89.41 +1.05% Alcoa Inc. (AA) $8.57 +0.82% 3M Co. (MMM) $91.87 +0.39% International Business Machines Corp. (IBM) $192.62 +0.35% Caterpillar Inc. (CAT) $87.23 +0.28% Dow Jones I.A - Fallers Home Depot Inc. (HD) $63.04 -2.19% Verizon Communications Inc. (VZ) $44.03 -0.86% Bank of America Corp. (BAC) $10.57 -0.61% JP Morgan Chase & Co. (JPM) $42.31 -0.59% Pfizer Inc. (PFE) $25.41 -0.59% Intel Corp. (INTC) $20.08 -0.37% Merck & Co. Inc. (MRK) $44.48 -0.34% General Electric Co. (GE) $21.39 -0.33% Exxon Mobil Corp. (XOM) $88.41 -0.21% Wal-Mart Stores Inc. (WMT) $72.15 -0.19% Nasdaq 100 - Risers Micron Technology Inc. (MU) $6.67 +3.65% Vertex Pharmaceuticals Inc. (VRTX) $40.25 +3.52% Nvidia Corp. (NVDA) $12.36 +3.39% Mylan Inc. (MYL) $28.02 +2.79% Baidu Inc. (BIDU) $91.75 +2.67% Perrigo Company (PRGO) $104.87 +2.47% Sears Holdings Corp. (SHLD) $43.97 +2.36% Expeditors International Of Washington Inc. (EXPD) $38.22 +2.36% Cisco Systems Inc. (CSCO) $19.79 +2.35% Celgene Corp. (CELG) $80.50 +2.31% Nasdaq 100 - Fallers Priceline.Com Inc. (PCLN) $625.96 -5.03% Expedia Inc. (EXPE) $57.71 -3.62% Amazon.Com Inc. (AMZN) $247.77 -2.17% Marvell Technology Group Ltd. (MRVL) $8.63 -1.88% Flextronics International Ltd. (FLEX) $5.84 -1.77% Netflix Inc. (NFLX) $84.80 -1.37% Starbucks Corp. (SBUX) $52.96 -1.27% Symantec Corp. (SYMC) $18.72 -1.19% eBay Inc. (EBAY) $51.17 -1.11% Research in Motion Ltd. (RIMM) $11.88 -1.08% |
| FX and Commodities round-up |
| FX round-up: Euro recovers as markets mull Monti news
The
euro dusted off earlier losses to register its first advance against
the dollar in four days on Monday as markets digested the surprise news
that Italy's Prime Minister Mario Monti plans to resign after the 2013
budget is approved.
Commodities: Crude slides for a fifth dayThe single currency had fallen in early trading as Italian bond yields rose following the news but later recovered ground to trade at $1.2941 compared to $1.2931 on Friday. Former leader Silvio Berlusconi said he will run for office again. There is growing concern that political turmoil in Italy could hamper the nation's economic stability and its ability to ability to borrow money in 2013. The ICE dollar index, which measures the US currency against a basket of six others, fell to 80.308 from 80.407 on Friday. The greenback had logged early gains following robust data from China, which reported a stronger than expected 10.1% increase in industrial output in November. However nerves ahead of the Federal Reserve's policy meeting, which starts on Tuesday prompted the dollar's retreat. Against the yen, the dollar bought ¥82.27 versus ¥82.15 the previous session. Sterling changed hands at $1.6068 compared to $1.6040.
Crude oil futures logged another decline on Monday as concern about supply and demand eroded buyer confidence.
Crude oil futures for January delivery fell 37 cents in the last 30 minutes of trading to settle at $85.56 a barrel on the New York Mercantile Exchange. Prices had temporarily been boosted by robust data from China after the world's second largest economy reported a stronger than expected 10.1% increase in industrial output in November. Otherwise volumes were lower than usual with traders unwilling to take new positions ahead of the US Federal Reserve's policy making meeting which starts on Tuesday and OPEC's oil output policy talks on Wednesday. The oil cartel is expected to keep oil output the same despite the fact that output is currently exceeding agreed levels by around a million barrels a day. Markets nerves were also triggered by the surprise news that Italian Prime Minister Mario Monti was prepared to resign once the 2013 budget is approved. Former leader Silvio Berlusconi is set to run for office again. ICE January Brent crude oil for January snapped its own five-day losing streak to rise 31 cents at $107.33 a barrel. Among precious metals gold futures settled higher on Monday as investors weighed up strong data from China, ongoing US 'fiscal cliff' woes and political turmoil in Europe's fifth largest economy. Gold for February delivery advanced $8.90 to settle at $1,714.40 an ounce on the Comex division of the New York Mercantile Exchange. March palladium bulked up $6.75 to $704.75 an ounce while platinum for January climbed $16.30 to $1,623,30 an ounce. |
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