London open: Aggreko drags Footsie lower early on
Market Movers
- techMARK 2,113.74 -0.12%
- FTSE 100 5,914.72 -0.12%
- FTSE 250 12,254.95 +0.09%
The FTSE 100 opened flat on Monday morning with the focus firmly on the
impending 'fiscal cliff' in the US as markets prepare for the Christmas
holiday. Aggreko was providing a drag on the index after giving a gloomy outlook for 2013.
"European equities are trading little changed to slightly higher this
morning on news that in Japan the Liberal Democratic Party has won a
landslide victory and in the US, Republicans indicating that they might
be willing to talk about tax increases," said Markus Huber, the head of
German HNW trading at ETX Capital.
This weekend, the Liberal
Democratic Party (LDP) took 294 seats in the 480-seat lower lower house.
With its partner Komeito, the LDP will control 325 seats. "It is time
to put an end to the last three years of inept political leadership,
confusion and stagnation," said LDP leader Shinzo Abe.
Market
analyst Michael Hewson from CMC Market said this morning: "Part of the
LDP's election manifesto was the setting of a clear inflation target of
2% and to work towards that by means of aggressive monetary easing with
the help of the Bank of Japan."
Meanwhile, rthe 'fiscal cliff'
has been dominating market sentiment over the past month, as law-makers
in the US continue to go back and forth in discussions to avert
automatic spending cuts and tax increases which come into effect at the
start of 2013. House Speaker John Boehner is facing increasing pressure
to soften his stance on higher taxes.
"There does appear some
evidence that he is starting to lean this way after he suggested raising
taxes for incomes over $1m," CMC's Hewson said.
Company news
Temporary power and temperature control solutions group Aggreko
tanked this morning after giving a gloomy outlook for next year, saying
that its performance would likely be lower than the 2012.
The
firm pointed out that the Olympics contract was just a one-off
contract, while it will be hit by the planned reduction in numbers of US
troops in Afghanistan which will lead to a further reduction in
Military revenues. Meanwhile, it is waiting on a Japanese client to see
whether it wants to extend its contracts into the second half of 2013.
Revenues from these three issues combined will dent the top line by
£100m in 2013, the group said.
Egypt-focused gold mining and exporting company Centamin
surged after confirming that the halt by customs on gold exports from
Sukari has been lifted and a shipment was made on Sunday December 16th.
Real estimate investment trust British Land fell despite saying that its half-owned Leadenhall Building in the City of London is to be 51% pre-let.
Energy services group Hunting
dropped after it said that it is trading in line with its expectations
for the full year but cautioned that the short-term outlook is
increasingly cautious due to tough market conditions in a number of its
operating regions.
FTSE 100 - Risers
Kazakhmys (KAZ) 771.00p +1.71%
Eurasian Natural Resources Corp. (ENRC) 272.30p +0.85%
Melrose Industries (MRO) 229.10p +0.75%
Rio Tinto (RIO) 3,413.50p +0.69%
Polymetal International (POLY) 1,183.00p +0.68%
Vedanta Resources (VED) 1,112.00p +0.63%
United Utilities Group (UU.) 707.00p +0.57%
BHP Billiton (BLT) 2,106.50p +0.55%
British Sky Broadcasting Group (BSY) 768.00p +0.52%
Croda International (CRDA) 2,373.00p +0.51%
FTSE 100 - Fallers
Aggreko (AGK) 1,791.00p -15.72%
Vodafone Group (VOD) 157.75p -1.99%
BT Group (BT.A) 235.90p -0.72%
Serco Group (SRP) 538.00p -0.65%
Diageo (DGE) 1,825.00p -0.52%
G4S (GFS) 251.40p -0.44%
Randgold Resources Ltd. (RRS) 6,215.00p -0.40%
Royal Bank of Scotland Group (RBS) 301.20p -0.36%
Compass Group (CPG) 735.50p -0.34%
BG Group (BG.) 1,038.00p -0.34%
FTSE 250 - Risers
Centamin (DI) (CEY) 42.75p +23.41%
New World Resources A Shares (NWR) 282.70p +4.98%
Kentz Corporation Ltd. (KENZ) 408.00p +3.61%
Petra Diamonds Ltd.(DI) (PDL) 110.50p +3.17%
Fidessa Group (FDSA) 1,480.00p +2.71%
Workspace Group (WKP) 314.90p +2.67%
Bumi (BUMI) 275.20p +2.30%
Stobart Group Ltd. (STOB) 98.75p +2.23%
Sports Direct International (SPD) 375.30p +2.15%
Barratt Developments (BDEV) 205.70p +1.98%
FTSE 250 - Fallers
Cookson Group (CKSN) 604.00p -5.40%
Hunting (HTG) 766.50p -4.90%
Computacenter (CCC) 392.10p -3.33%
JD Sports Fashion (JD.) 725.00p -2.95%
Heritage Oil (HOIL) 173.10p -2.20%
Phoenix Group Holdings (DI) (PHNX) 527.00p -2.14%
PZ Cussons (PZC) 352.80p -2.00%
Beazley (BEZ) 174.00p -1.86%
Talvivaara Mining Company (TALV) 95.35p -1.70%
Telecom Plus (TEP) 880.00p -1.57%
UK Event Calendar
Monday December 17
INTERIM DIVIDEND PAYMENT DATE
C&C Group, Chamberlin, E2V Technologies, Telecom Plus
QUARTERLY EX-DIVIDEND DATE
Total SA
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (EU) (11:00)
AGMS
Aeorema Communications, Churchill Mining, Jubilee Platinum, Physiomics, Proactis Holdings, Spectra Systems Corporation
TRADING ANNOUNCEMENTS
Aggreko
FINAL DIVIDEND PAYMENT DATE
Fidelity
Special Values, Henderson Fledgling Trust , Inland Homes, Lok'n Store
Group, Smart (J) & Co., World Careers Network, YouGov
UK ECONOMIC ANNOUNCEMENTS
Rightmove house price index for December (00:01)
| Europe Market Report |
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| FTSE 100 | Euronext | Dax perf | CAC 40 |
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European Stocks May See Cautious Start
European
stocks are set to open higher on Monday after the European Union
leaders agreed on a roadmap for the completion of the Economic and
Monetary Union, besides a deal for closer banking sector union. That
said, concerns about the U.S. fiscal cliff may limit gains to a large
extent. Asian stocks reversed early gains, weighed down by the lack of
progress in U.S. budget talks as the year-end deadline to avert the
fiscal cliff draws even closer.
Japan's Nikkei index is moving up
0.9 percent after the nation's Liberal Democratic Party stormed back to
power in parliamentary elections Sunday after three years in
opposition. The yen tumbled against the dollar and euro on expectations
for aggressive BoJ action. China's Shanghai Composite index is gaining
0.4 percent after China's new Communist Party leaders promised reforms
to lift domestic demand and ensure stable economic growth next year.
Elsewhere,
the markets in Australia, Hong Kong, India, Singapore, South Korea and
Taiwan are down between 0.2 percent and 0.9 percent.
In economic
releases, the average asking price for a home in the United Kingdom fell
3.3 percent in December compared to the previous month, property
tracking site Rightmove said, standing at 228,989 pounds. That follows
the 2.6 percent contraction in November. On a yearly basis, prices were
up 1.4 percent after rising 2.0 percent in the previous month.
Trade
data from Eurozone will be released later in the session, with analysts
expecting the euro area trade surplus to increase to EUR 11 billion in
October from EUR 9.8 billion in the previous month.
In corporate
news, GlaxoSmithKline Plc has said that the U.S. Food and Drug
Administration has approved Raxibacumab as the first monoclonal
anti-toxin for the treatment of inhalational anthrax due to Bacillus
anthracis bacteria.
Swiss drug giant Novartis AG said that its
Signifor (pasireotide) injection received FDA approval as the first
medication to treat Cushing's disease.
The European markets
turned in a mixed performance on Friday as traders weighed upbeat
Chinese data against ongoing U.S. fiscal cliff worries. The U.K.'s FTSE
100 and Switzerland's SMI slipped 0.1 percent and 0.3 percent,
respectively, while France's CAC 40 edged up marginally and the German
DAX rose 0.2 percent.
U.S. stocks fell on Friday, as lingering
worries about the fiscal cliff once again overshadowed upbeat economic
data showing a rebound in industrial production and a bigger than
expected drop in consumer prices in November. The Dow slipped 0.3
percent and the S&P 500 slid 0.4 percent, while the tech-heavy
Nasdaq fell 0.7 percent, dragged down by another slide in Apple's share
price.
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| US Market Report |
US close: Steel stocks higher on Chinese data
-Steel stocks higher on Chinese data
-Industrial production data points to soft manufacturing -Barclays
-Bank of America expects 'unfriendly' outcome to fiscal talks
-Apple drags on Wall Street
-Stein (Fed): New bank regulations don't disadvantage foreign banks
-Obama signs bill ending trade restrictions with Russian Federation
Dow Jones Industrials: -0.27%
Nasdaq Comp.: -0.71%
S&P 500: -0.38%
The main US equity benchmarks registered slight falls for the day and
the week, weighed down by another drop in shares of technology giant
Apple and worries over the fiscal cliff.
The
Standard&Poor´s 500 and the Dow Jones Industrials thus finished the
week off by 0.2% and 0.3%, respectively, putting paid to three
consecutive weeks of advances.
Of interest nevertheless, steel
related stocks did quite well on the back of upbeat macroeconomic data
points on the other side of the Pacific Ocean, in China.
Analysts at Jefferies downgraded their forecast for iPhone shipments from Apple in the first quarter of 2013 to approximately 48m instead of 52m.
UBS cut its price target on Apple to $700 a share from $780.
Oil services group Schlumberger
announced that it will take a hit on its fourth-quarter earnings from
contract delays in some regions and weaker-than-expected North America
activity.
Shares of Adobe Systems rose strongly after the software company reported sales and profit that topped analysts' projections.
Best Buy
shares took a 15% hit after the electronics retailer said it would
extend the deadline for co-founder Richard Schulze to make a buyout
offer until after the holiday season.
General Electric boosted its share repurchase authorisation by $10bn.
By sectors the best performance was to be seen in the following
industrial groups: Non-ferrous metals (3.64%) Iron&Steel (3.29%) and
Industrial metals (3.05%).
Not so strong industrial production figures
Industrial
production grew at a 1.0% month-on-month pace in November, well ahead
of the 0.3% gain forecast, as output snapped back after Sandy.
Even so, this is what economists at Barclays Research
had to say: "While it is encouraging that the drop in October proved
temporary, if the negative storm effect in October was fully offset in
November, the trend in manufacturing output remains soft – for example,
on a three-month moving average basis, output rose just 0.9% (saar),
broadly consistent with the message of the ISM survey, which has hovered
around the 50 breakeven mark in recent months."
The US
consumer price index rose at a 1.8% year-on-year pace in the month of
November, after a reading of 2.2% for the month before (Consensus:
1.9%).
The core rate dropped to a 1.9% clip, after a rise of 2.0% (Consensus: 2%).
The relatively new Markit preliminary manufacturing sector purchasing
managers' index for the month of December came in at 54.2 points versus
52.4 in the previous month (Consensus: 51.8).
Slight rise in crude futures
Front month crude futures closed 1.07% higher, at the 86.81 dollar mark on the NYMEX.
10 year US Treasury yields fell by 3 basis points to the 1.70% mark.
S&P 500 - Risers
United States Steel Corp. (X) $23.85 +6.81%
Adobe Systems Inc. (ADBE) $37.56 +5.71%
Tesoro Corp. (TSO) $43.66 +5.56%
Cliffs Natural Resources Inc. (CLF) $33.96 +5.17%
Freeport-McMoRan Copper & Gold Inc. (FCX) $33.78 +4.00%
PPG Industries Inc. (PPG) $129.93 +3.77%
Alpha Natural Res (ANR) $9.68 +3.64%
Micron Technology Inc. (MU) $6.85 +2.85%
Nucor Corp. (NUE) $42.28 +2.65%
First Solar Inc. (FSLR) $32.56 +2.49%
S&P 500 - Fallers
Best Buy Co. Inc. (BBY) $12.05 -14.66%
Jabil Circuit Inc. (JBL) $17.51 -5.50%
Schlumberger Ltd. (SLB) $68.91 -5.03%
QUALCOMM Inc. (QCOM) $59.83 -4.67%
Apple Inc. (AAPL) $509.79 -3.76%
Broadcom Corp. (BRCM) $32.06 -3.64%
Illinois Tool Works Inc. (ITW) $59.82 -3.59%
F5 Networks Inc. (FFIV) $90.41 -3.54%
MetLife Inc. (MET) $31.84 -3.02%
DeVry Inc. (DV) $25.06 -2.87%
Dow Jones I.A - Risers
Alcoa Inc. (AA) $8.74 +1.75%
Hewlett-Packard Co. (HPQ) $14.75 +1.72%
Caterpillar Inc. (CAT) $89.00 +0.72%
Cisco Systems Inc. (CSCO) $19.86 +0.61%
Bank of America Corp. (BAC) $10.58 +0.38%
E.I. du Pont de Nemours and Co. (DD) $44.09 +0.25%
Travelers Company Inc. (TRV) $73.37 +0.19%
Intel Corp. (INTC) $20.53 +0.18%
Coca-Cola Co. (KO) $37.66 +0.16%
JP Morgan Chase & Co. (JPM) $42.81 +0.07%
Dow Jones I.A - Fallers
American Express Co. (AXP) $56.65 -1.85%
Microsoft Corp. (MSFT) $26.81 -1.11%
Merck & Co. Inc. (MRK) $43.54 -0.93%
AT&T Inc. (T) $34.01 -0.90%
Walt Disney Co. (DIS) $48.67 -0.90%
Verizon Communications Inc. (VZ) $44.21 -0.70%
Pfizer Inc. (PFE) $25.18 -0.59%
Exxon Mobil Corp. (XOM) $88.08 -0.56%
Home Depot Inc. (HD) $62.06 -0.56%
United Technologies Corp. (UTX) $79.98 -0.49%
Nasdaq 100 - Risers
Warner Chilcott Plc (WCRX) $11.70 +7.24%
Adobe Systems Inc. (ADBE) $37.56 +5.71%
Sirius Satellite Radio Inc. (SIRI) $2.91 +5.05%
Micron Technology Inc. (MU) $6.85 +2.85%
Virgin Media Inc. (VMED) $36.07 +2.82%
Baidu Inc. (BIDU) $97.40 +2.25%
Fossil Inc. (FOSL) $90.67 +1.86%
Yahoo! Inc. (YHOO) $19.64 +1.50%
Research in Motion Ltd. (RIMM) $14.04 +1.30%
KLA-Tencor Corp. (KLAC) $47.18 +1.23%
Nasdaq 100 - Fallers
Avago Technologies Ltd. (AVGO) $31.14 -7.60%
QUALCOMM Inc. (QCOM) $59.83 -4.67%
Apple Inc. (AAPL) $509.79 -3.76%
Broadcom Corp. (BRCM) $32.06 -3.64%
F5 Networks Inc. (FFIV) $90.41 -3.54%
Monster Beverage Corp (MNST) $53.38 -2.40%
Life Technologies Corp. (LIFE) $49.43 -2.04%
Apollo Group Inc. (APOL) $21.02 -1.78%
Marvell Technology Group Ltd. (MRVL) $8.21 -1.56%
Cerner Corp. (CERN) $77.24 -1.53% |
| FX and Commodities round-up |
FX round-up: Dollar logs losses after inflation data
The
dollar weakened against major currencies on Friday after data showed US
inflation fell in November for the first time in six months.
The ICE dollar index, which measures the US currency against a basket of
six rivals, declined to 79.542 from 79.924 on Thursday.
The
US consumer price index rose at a 1.8% year-on-year rate in November,
after rising 2.2% the month before. On Wednesday the Federal Reserve
announced it would link its policy to the level of joblessness and
inflation.
A separate report showed industrial production rose
1% month-on-month in November. While it was stronger than the 0.3%
expected analysts remain worried that manufacturing output remains soft.
The greenback was down for the fifth consecutive day against
the euro. The single currency advanced to $1.3156 from $1.3076 on
Thursday.
Against the yen, the dollar changed hands at ¥83.52
from ¥83.64 the day before as markets looked ahead to general elections
in Japan on Sunday.
Sterling recovered ground against the
dollar, rising to $1.6158 from $1.6113 before as Standard & Poor's
Ratings Services cut its outlook on the UK's triple-A credit rating to
negative from stable.
S&P warned there is a one-in-three chance that the UK will loses its prized AAA status within the next two years.
Commodities: Crude scores weekly gain
Crude
oil futures gained one per cent on Friday as investors cheered strong
Chinese manufacturing data while focus also turned to turmoil in Syria.
Oil for January delivery climbed 84 cents, or 1%, to settle at $86.73 a
barrel on the New York Mercantile Exchange. For the week crude
increased 0.9%.
On Friday HSBC's preliminary manufacturing
purchasing managers' index hit a 14-month high, boosting hopes about the
underlying health of the Chinese economy.
However US data
failed to cheer with industrial production up 1% month-on-month in
November. While it was ahead of the 0.3% gain forecast, analysts remain
concerned that manufacturing output remains soft.
Meanwhile the US consumer price index rose at a 1.8% year-on-year rate in November, after rising 2.2% the month before.
Jitters about oil supplies from the Middle East were fuelled by reports
of further violence in Syria. The nation's vice president Farouq
al-Sharaa is calling for a 'historic settlement' of the conflict in his
country.
Among precious metals gold fell below $1,700 an ounce on Friday as buyers sat on the sidelines ahead of the holiday season.
Gold for February delivery rose 20 cents to settle at $1,697 on the
Comex division of the New York Mercantile Exchange. Over the week gold
prices slipped 0.5%
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