Stocks lifted by Chinese manufacturing figures
Market Movers
techMARK 2,124.25 +0.04%
FTSE 100 5,935.14 +0.09%
FTSE 250 12,247.62 +0.30%
UK
stocks edged higher in early trading on Friday, with upbeat data from
China temporarily offsetting investor concerns over the 'fiscal cliff'.
The HSBC flash manufacturing purchasing managers' index (PMI) rose from 50.5 to 50.9 in December, slightly above the 50.8 forecast. This was its highest level since October 2011.
"It is also the fifth consecutive month that the figure has improved
which suggests, along with other data, that the economy bottomed out
back in the third quarter," said analyst Craig Erlam from Alpari.
"As always with Chinese manufacturing data, this is good news globally
as well as domestically. A strong China will be key to driving the
global recovery. It also suggests that external demand is improving
which is consistent with data we've seen out of the US and the eurozone
in recent months," he said.
However, data from Japan was less cheery. The Bank of Japan's quarterly Tankan report
showed that a survey of business sentiment amongst manufacturers
dropped to -12 in the three months to December, from -3 the previous
quarter.
Stocks fell yesterday after US House Speaker John
Boehner attacked the Obama administration, saying that the White House
is not serious about cutting spending to avert the ‘fiscal cliff’.
“Unfortunately, the White House is so unserious about cutting spending
that it appears willing to slow-walk our economy right up to - and over -
the fiscal cliff,” he said in a press conference on Thursday afternoon.
FTSE 100: ENRC hit by downgrade
Company news was thin on the ground this morning as markets near the quiet Christmas period. Mining giant ENRC
was a heavy faller after UBS downgraded its rating for the stock from
'buy' to 'neutral', saying it sees an "increasing risk of financial
stress in 2013". The broker has slashed its target for the shares from
680p to 270p. UBS also cut its recommendation for Anglo American to 'neutral'.
In contrast, distribution and outsourcing group Bunzl was lifted by Citigroup which raised its rating to 'buy', while technology titan Smiths Group gained after an upgrade from Credit Suisse to 'outperform'.
Security firm G4S has announced that it is to acquire an 87% stake in South African retail cash solutions technology provider Deposita for £8.2m.
FTSE 250: Centamin rebounds but mining still suspended
Gold miner Centamin
rebounded strongly after saying that the fuel supply to its Sukari mine
in Egypt has resumed, after the Egyptian General Petroleum Corporation
went back on yesterday's decision to hit the gold miner with a
retrospective payment claim.
However, issues with delayed gold
exports still mean that the miner's Sukari project continues to be
suspended. Shares jumped 25% this morning following yesterday's near-50%
drop.
bwin.party digital entertainment, the online
gambling group, said that Belgian authorities have dropped all legal
disputes with the company after it entered into a collaboration
agreement with French casino operator Partouche.
| AIM/Small Cap Report |
FTSE 100 - Risers
Bunzl (BNZL) 1,071.00p +1.13%
Wolseley (WOS) 2,853.00p +1.06%
Smiths Group (SMIN) 1,157.00p +1.05%
Experian (EXPN) 1,009.00p +1.00%
Johnson Matthey (JMAT) 2,436.00p +0.95%
Croda International (CRDA) 2,366.00p +0.94%
Xstrata (XTA) 1,055.50p +0.91%
Wood Group (John) (WG.) 739.50p +0.82%
Burberry Group (BRBY) 1,272.00p +0.79%
British Sky Broadcasting Group (BSY) 767.00p +0.79%
FTSE 100 - Fallers
Eurasian Natural Resources Corp. (ENRC) 262.10p -3.03%
AstraZeneca (AZN) 2,923.00p -1.20%
Anglo American (AAL) 1,836.50p -1.10%
Prudential (PRU) 889.50p -1.00%
BG Group (BG.) 1,036.50p -1.00%
Aviva (AV.) 370.00p -0.75%
Morrison (Wm) Supermarkets (MRW) 264.80p -0.49%
National Grid (NG.) 714.00p -0.49%
Standard Chartered (STAN) 1,494.00p -0.47%
Schroders (SDR) 1,643.00p -0.36%
FTSE 250 - Risers
Centamin (DI) (CEY) 34.68p +25.20%
Interserve (IRV) 381.40p +3.70%
Grainger (GRI) 119.80p +2.48%
Fidelity China Special Situations (FCSS) 81.85p +2.44%
Ted Baker (TED) 1,114.00p +1.64%
Victrex (VCT) 1,606.00p +1.58%
Hays (HAS) 81.85p +1.49%
Debenhams (DEB) 115.90p +1.49%
Kenmare Resources (KMR) 30.42p +1.23%
British Empire Securities & General Trust (BTEM) 470.90p +1.18%
FTSE 250 - Fallers
Morgan Crucible Co (MGCR) 257.70p -3.05%
Paragon Group Of Companies (PAG) 256.70p -2.02%
Supergroup (SGP) 584.00p -1.60%
Renishaw (RSW) 1,934.00p -1.48%
Man Group (EMG) 79.95p -1.42%
WH Smith (SMWH) 657.00p -1.35%
Redrow (RDW) 157.90p -1.31%
Bank of Georgia Holdings (BGEO) 1,028.00p -1.15%
Rank Group (RNK) 138.00p -1.08%
Dunelm Group (DNLM) 644.50p -0.92%
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| UK Event Calendar |
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| FTSE 100 | Euronext | Dax perf | CAC 40 |
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Company
news is likely to be thin on the ground on Friday morning with no
blue-chip companies in London scheduled to report earnings or quarterly
updates.
Nevertheless, results and trading statements from a number of small caps are due out, including Pursuit Dynamics, Plant Impact and i-design.
In the absence of any results from heavyweight stocks, investors’ focus will undoubtedly remain on the US ‘fiscal cliff’ as markets remain sensitive to ‘to-ing and fro-ing’ from politicians Stateside.
House Speaker John Boehner dampened sentiment on Thursday saying that the White House is not serious about reaching a deal.
“Unfortunately, the White House is so unserious about cutting spending
that it appears willing to slow-walk our economy right up to - and over -
the fiscal cliff,” Boehner said.
Markets will also be keeping an eye on inflation data in both the Eurozone and the US tomorrow.
The Eurozone core consumer price index (CPI) is expected to stay
unchanged in November at an annual increase of 1.5%. Meanwhile, the US
core CPI is forecast to remain at 2.0%.
INTERIM DIVIDEND PAYMENT DATE
Braemar Shipping Services, Carphone Warehouse Group, Charles Stanley
Group, Clean Energy Brazil, Edge Performance VCT 'C' Shares,
Intermediate Capital Group, Printing.com, SABMiller, Synergy Health,
TalkTalk Telecom Group , Wynnstay Properties, Young & Co's Brewery
'A' Shares, Young & Co's Brewery (Non-Voting)
QUARTERLY PAYMENT DATE
Anglogold Ashanti Ltd., Carnival, Energy XXI (Bermuda) (Di)
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Price Index (US) (13:30)
Consumer Price Index (EU) (10:00)
Harmonised Index of Consumer Prices (EU) (10:00)
New Car Registrations (EU) (10:00)
Wholesale Price Index (GER) (07:00)
AGMS
CVS Group, Firestone Diamonds, Northern Venture Trust, Pantheon
Resources, Punch Taverns, Quadrise Fuels International, Reconstruction
Capital II Ltd., Spitfire Oil Ltd. (DI), World Careers Network
FINAL DIVIDEND PAYMENT DATE
Air Partner, Avingtrans, Downing Absolute Income VCT 1, Downing
Absolute Income VCT 1 'C' Shares , Edinburgh Dragon Trust, Keystone Inv
Trust, Plexus Holdings, Tristel, Utilitywise
|
| US Market Report |
Stocks fall as law-makers continue to battle over 'cliff'
Market movers
Dow Jones: 13,172 (-0.56%)
Nasdaq; 2,992 (-0.72%)
S&P 500: 1,419 (-0.63%)
US stocks
finished Thursday's session in the red as concerns about the 'fiscal
cliff' outweighed some better-than-expected data as politicians continue
go back and forth.
Jobless claims Stateside fell to 343,000
last week, from an upwardly revised 372,000 the week before. Analysts
were expecting the figure of 369,000.
Retail sales increased by 0.3% in November, following the 0.3% fall the month before.
However, after a subdued start on Wall Street, stocks dripped into
negative territory after Republican House Speaker John Boehner said that
the White House is not serious about cutting spending to avert the
‘fiscal cliff’.
“Unfortunately, the White House is so
unserious about cutting spending that it appears willing to slow-walk
our economy right up to - and over - the fiscal cliff,” Boehner said in a
press conference this afternoon.
Meanwhile, Senate Majority
Leader and Nevada Democrat Harry Reid said that Americans shouldn't have
their tax cuts "held hostage to these never-ending press conferences
that [Boehner's] holding and his self interest […] It’s time we put the
middle class first.”
In company news, tech giant Apple finished lower after drawing criticism for its Apple Maps app for the iPhone and iPad, with Google releasing its own improved version on Thursday. The search engine giant closed with small gains.
Retail group Best Buy surged on reports that its founder Richard Schulze could launch a new bid for the company.
Sprint Nextel was lower after saying that it would buy 49% of Clearwire that it did not already own. The deal values Clearwire at $2bn.
S&P 500 - Risers
Best Buy Co. Inc. (BBY) $14.12 +15.93%
J.C. Penney Co. Inc. (JCP) $20.80 +6.94%
Tesoro Corp. (TSO) $41.36 +3.43%
Juniper Networks Inc. (JNPR) $19.36 +2.06%
CVS Caremark Corp. (CVS) $48.50 +2.02%
Netflix Inc. (NFLX) $92.56 +2.02%
Apollo Group Inc. (APOL) $21.40 +1.86%
Advanced Micro Devices Inc. (AMD) $2.41 +1.69%
Windstream Corp. (WIN) $8.66 +1.52%
Abercrombie & Fitch Co. (ANF) $46.90 +1.38%
S&P 500 - Fallers
Lexmark International Inc. (LXK) $23.49 -6.34%
Nabors Industries Ltd. (NBR) $13.85 -4.68%
Monster Beverage Corp (MNST) $54.69 -3.71%
Range Resources Corp. (RRC) $63.56 -3.46%
CF Industries Holdings Inc. (CF) $202.51 -3.42%
Cabot Oil & Gas Corp. (COG) $47.02 -3.23%
Broadcom Corp. (BRCM) $33.27 -3.12%
CME Group Inc. (CME) $51.21 -3.01%
CBRE Group Inc (CBG) $19.10 -3.00%
Newmont Mining Corp. (NEM) $44.17 -2.92%
Dow Jones I.A - Risers
Caterpillar Inc. (CAT) $88.36 +0.47%
Mondelez International Inc. (MDLZ) $26.10 +0.23%
Wal-Mart Stores Inc. (WMT) $69.04 +0.15%
American Express Co. (AXP) $57.72 +0.09%
Cisco Systems Inc. (CSCO) $19.74 +0.05%
JP Morgan Chase & Co. (JPM) $42.78 +0.02%
Dow Jones I.A - Fallers
Merck & Co. Inc. (MRK) $43.95 -2.89%
Boeing Co. (BA) $74.32 -1.52%
Walt Disney Co. (DIS) $49.11 -1.07%
Exxon Mobil Corp. (XOM) $88.58 -0.97%
Procter & Gamble Co. (PG) $70.13 -0.89%
Intel Corp. (INTC) $20.49 -0.87%
Home Depot Inc. (HD) $62.41 -0.83%
United Technologies Corp. (UTX) $80.37 -0.78%
General Electric Co. (GE) $21.62 -0.73%
E.I. du Pont de Nemours and Co. (DD) $43.98 -0.72%
|
| Friday newspaper round-up |
UK rating, EU banking union, UBS...
Britain’s gold-plated sovereign credit rating
has suffered another blow after Standard & Poor’s became the third
major agency to downgrade the outlook to 'negative'. The change means
there is a 'one-in-three chance that we could lower the ratings in the
next two years', S&P said. Moody's and Fitch already have the UK on
'negative outlook' and plan to review the AAA status next year. S&P,
which has cut the US and France to AA+, said its decision reflected the
weak recovery in Britain and sharply rising national debt. Many
economists now believe the UK will lose its cherished top-notch rating,
with one of the three agencies expected to move in 2013. [ The Telegraph]
The EU needs fresh powers to wind up failing banks in a speedy push to the next phase of banking union, according to Mario Draghi,
president of the European Central Bank, after a landmark agreement on
centralised supervision. The hard-won agreement among eurozone finance
ministers on Thursday to appoint the ECB as the “single supervisory
mechanism” (SSM) is just the first, and easiest, step in a banking union
plan designed to prevent a repeat of the financial contagion that
dragged down banks and sovereigns in the debt crisis. The next phase –
agreeing on a common resolution authority to oversee the orderly winding
down of insolvent lenders – is likely to be even more fraught, as it
implies that taxpayers might have to pay for the mistakes of a bank in
another country.[ Financial Times]
Banks face another big hit to their reputation as UBS
of Switzerland prepares to pay a fine of around £630m for rigging Libor
– more than twice the amount Barclays paid for attempting to manipulate
the key interest rate. Details of the settlement with the
Financial Services Authority and a number of US and Swiss regulators are
expected to be released next week. The news will be a fresh
embarrassment for the Swiss bank after Kweku Adoboli, a former employee,
was jailed for fraudulent trading last month. [ The Guardian]
Sir Philip Green is taking his first steps into Greater China with the opening of Topshop’s first store in Hong Kong.
The move comes just days after he sold a £350 million stake in Topshop
to Leonard Green & Partners, the American private equity group.
Topshop, and its sister brand Topman, are the most exportable of the
brands in Sir Philip’s Arcadia stable. The Hong Kong outpost will be run
in a joint venture with LAB Concept, a new subsidiary of Lane Crawford,
the Hong Kong department store. The shop is intended as a platform for
expansion into the Chinese mainland. [ The Times]
Oil & gas giant BG Group
has asked a former Shell executive who was once accused of dangerous
health and safety breaches in the North Sea to be its new boss. Chris
Finlayson, who is a BG board member and joined from Shell in 2010, was
one of the men who were accused by an insider of having been involved in
a Touch F*** All policy when he was a director for the company's UK
division in the late 1990s. This supposedly involved top directors
allowing managers to stop maintenance and safety inspections in the
North Sea so as to prevent costly shutdowns. [ The Independent]
Japanese large manufacturers
are the most pessimistic they have been since March 2010, underlining
the scale of the challenge facing Shinzo Abe, who is poised to become
prime minister after Sunday’s election. The Bank of Japan’s quarterly Tankan report,
released on Friday, showed that the key measure of business confidence
among big manufacturers fell to minus 12 from minus 3 in September. It
marked the fifth straight quarter that pessimists outnumbered optimists.
[ Financial Times]
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