Stocks edge higher ahead of rate decisions
Market Movers
techMARK 2,115.47 +0.07%
FTSE 100 5,907.38 +0.26%
FTSE 250 12,157.81 +0.45%
Stocks started Thursday's session with moderate gains on the back of hopes that US politicians are nearing an agreement on the 'fiscal cliff', as markets looked ahead to policy announcements in both the UK and Europe.
"European headline shares opened vigilantly today as a raft of economic
data due over the next couple of days caused investors to second-guess
whether they should be holding risk-on assets in the context of global
economic uncertainty," said financial trader Shavaz Dhalla from
Spreadex.
"Despite such uncertainty, optimism has been dealt a
positive hand following reports yesterday that US policy officials are
moving closer to a deal, which could even be completed next week, in
order to avoid the fiscal cliff," he said.
Investors will also be watching out for rate decisions from the Bank of England and European Central Bank after midday, both of whom are expected to keep policy on hold.
Markets largely shrugged off yesterday's Autumn Budget
from Chancellor George Osborne in which the government announced new
figures that forecast a 0.1% contraction in UK GDP this year, before the
economy grows by 1.2% next year.
FTSE 100: Rolls-Royce drops on bribery investigation
Power
systems giant Rolls-Royce tanked after saying that it is to report to
the Serious Fraud Office (SFO) after matters of bribery and corruption
involving so-called 'intermediaries' were discovered in Indonesia and
China.
UK lender Barclays gained after saying that it
is to combine the majority of its African operations with Absa Group,
saying it accelerates the 'One Bank in Africa' strategy and its goal to
become the 'Go-To- bank on the continent.
Emerging markets bank Standard Chartered
was in demand after saying it is in on track to deliver another strong
set of full-year results this year as it reiterated that it is near to
settling claims over Iran-linked transactions with US authorities.
Sector peer HSBC
fell into the red on reports that it may pay a fine of £1.1bn in the US
to settle charges from law enforcement authorities that it permitted
money-laundering.
FTSE 250: Stagecoach rises on West Coast news
Stagecoach
was higher after the Department for Transport said that its joint
venture Virgin Rail Group would continue to run the West Coast Mainline
franchise until November 2014.
Packaging firm DS Smith
rose after expressing confidence for the full year, with interims
profits boosted by its acquisition of SCA Packaging on June 30th,
although net debt levels have risen.
Premier Oil fell
after its 70%-owned Cyclone well in the North Sea had failed to strike
oil. AIM-listed Antrim Energy owns the remaining 30% of the project.
Electronics components supplier Premier Farnell was out of favour after saying profit in the third quarter fell amid challenging market conditions.
| AIM/Small Cap Report |
FTSE 100 - Risers
Antofagasta (ANTO) 1,322.00p +2.01%
Standard Chartered (STAN) 1,517.00p +1.91%
Intertek Group (ITRK) 3,139.00p +1.65%
Barclays (BARC) 249.90p +1.42%
Rexam (REX) 446.70p +1.38%
CRH (CRH) 1,158.00p +1.31%
Melrose Industries (MRO) 224.40p +1.22%
Vedanta Resources (VED) 1,107.00p +1.19%
ITV (ITV) 104.40p +1.16%
Evraz (EVR) 238.90p +1.14%
FTSE 100 - Fallers
Sage Group (SGE) 290.40p -3.33%
Rolls-Royce Holdings (RR.) 889.00p -2.68%
Randgold Resources Ltd. (RRS) 6,375.00p -1.62%
Hargreaves Lansdown (HL.) 735.50p -1.08%
Severn Trent (SVT) 1,563.00p -0.57%
British Land Co (BLND) 550.00p -0.54%
Shire Plc (SHP) 1,877.00p -0.53%
ARM Holdings (ARM) 748.50p -0.47%
Land Securities Group (LAND) 804.00p -0.43%
Pennon Group (PNN) 617.00p -0.32%
FTSE 250 - Risers
Dixons Retail (DXNS) 27.76p +5.03%
Talvivaara Mining Company (TALV) 98.20p +3.26%
Ted Baker (TED) 1,105.00p +2.98%
Lonmin (LMI) 260.10p +2.60%
Victrex (VCT) 1,571.00p +2.55%
Imagination Technologies Group (IMG) 410.30p +2.32%
Beazley (BEZ) 182.00p +2.25%
Elementis (ELM) 228.90p +2.05%
Smith (DS) (SMDS) 217.60p +1.92%
Rank Group (RNK) 139.90p +1.89%
FTSE 250 - Fallers
JD Sports Fashion (JD.) 715.50p -4.60%
PayPoint (PAY) 855.50p -2.06%
Hiscox Ltd. (HSX) 474.70p -1.64%
Synthomer (SYNT) 180.00p -1.64%
COLT Group SA (COLT) 100.80p -1.47%
Lancashire Holdings (LRE) 801.00p -1.42%
Dignity (DTY) 1,014.00p -1.36%
Centamin (DI) (CEY) 51.20p -1.06%
Premier Oil (PMO) 329.10p -0.99%
Diploma (DPLM) 505.00p -0.98%
|
| UK Event Calendar |
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| FTSE 100 | Euronext | Dax perf | CAC 40 |
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INTERIMS
Micro Focus International, Mulberry Group, Smith (DS)
INTERIM DIVIDEND PAYMENT DATE
First Derivatives
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Continuing Claims (US) (13:30)
ECB Interest Rate (EU) (12:45)
GDP (1st release) (EU) (10:00)
Initial Jobless Claims (US) (13:30)
Q3
Premier Farnell
FINALS
CareTech Holding, OMG, Redhall Group
ANNUAL REPORT
Carr's Milling Industries
IMSS
Wolseley
EGMS
3Legs Resources, JSC Halyk Bank GDR (Reg S)
AGMS
Altus Resource Capital Ltd., City Natural Resources High Yield Trust,
Egdon Resources, Jellybook Ltd (DI), RSM Tenon Group, Wessex Exploration
TRADING ANNOUNCEMENTS
PZ Cussons
UK ECONOMIC ANNOUNCEMENTS
Balance of Trade (09:30)
New Car Registrations (09:30)
UK Trade (09:30)
FINAL DIVIDEND PAYMENT DATE
Fidelity Asian Values
|
| US Market Report |
Apple keeps benchmarks down, but why?
Dow Jones Industrials: 0.64%
Nasdaq Comp.: -0.57%
S&P 500: 0.16%
The main US equity indices finished mostly higher. That following an
upbeat ISM services report and despite Citigroup announcing that it will
incur in approximately a 1bn dollar charge and lay-off 4 per cent of
its work force.
Yet arguably the most pertinent news today related – once again – to the omnipresent ‘fiscal cliff’.
A few dozen Republicans joined a bipartisan call to break the impasse
between President Barack Obama and House Speaker John Boehner over taxes
for the highest- earning Americans, Bloomberg reports.
Apple weighs on the Nasdaq
Facebook
moved higher on news that it is to enter the Nasdaq-100, which will
force those funds who replicate it to purchase stock in the company.
Apple
weighed on the tech-sector again on Wednesday, possibly ahead of
tomorrow’s court hearing related to its running legal battles with
Samsung. As well, CNBC reported that the COR Clearing has raised margin requirements to trade in the stocks.
Furthermore, some market chatter pointed towards a misinterpretation of
some reports on the company as having implied that demand for its
iPhone 5's might be set to drop in the first quarte of 2013.
More probable is that sentiment may have been hit by industry reports, such as one out of market reserch firm IDC, arguing that Apple will lose market share in the market for tablets to Google´s Android platform.
Freeport McMoRan announced that it will acquire McMoRan Exploration Co. and Plains Exploration & Production Co..
Fossil has announced a $1bn share repurchase program.
Stronger than expected economic data
The
US ISM services sector purchasing managers' index for the month of
November came in at 54.7, after a reading of 54.2 for the previous month
(Consensus: 53.5), led by a large increase in the new orders component.
US labour productivity expanded at a 2.9% quarterly and annualized pace in the third quarter (Consensus: 2.8%).
Private sector payrolls increased by 118,000 in November, according to consultancy ADP (Consensus: 125,000).
Slight move lower in crude futures
Front month West Texas crude futures fell by 0.03% to the 87.85 dollar level on the NYMEX.
10 year US Treasury yields were now down by 2 basis points to the 1.59% mark.
S&P 500 - Risers
Alpha Natural Res (ANR) $8.07 +11.31%
Western Digital Corp. (WDC) $36.03 +7.26%
Citigroup Inc. (C) $36.46 +6.33%
Bank of America Corp. (BAC) $10.46 +5.55%
Travelers Company Inc. (TRV) $74.00 +4.92%
CONSOL Energy Inc. (CNX) $32.98 +4.86%
Peabody Energy Corp. (BTU) $26.06 +4.50%
Seagate Technology Plc (STX) $27.60 +4.31%
Cummins Inc. (CMI) $101.31 +4.11%
Cognizant Technology Solutions Corp. (CTSH) $69.75 +3.89%
S&P 500 - Fallers
Freeport-McMoRan Copper & Gold Inc. (FCX) $32.16 -15.99%
Apple Inc. (AAPL) $538.79 -6.43%
PulteGroup Inc. (PHM) $16.20 -5.21%
Tesoro Corp. (TSO) $38.93 -4.58%
Sears Holdings Corp. (SHLD) $41.21 -3.89%
Big Lots Inc. (BIG) $30.06 -3.87%
Netflix Inc. (NFLX) $83.37 -3.78%
Altera Corp. (ALTR) $31.01 -3.63%
Lennar Corp. Class A (LEN) $36.42 -3.60%
Vulcan Materials Co. (VMC) $51.12 -3.11%
Dow Jones I.A - Risers
Bank of America Corp. (BAC) $10.46 +5.55%
Travelers Company Inc. (TRV) $74.00 +4.92%
Caterpillar Inc. (CAT) $86.05 +2.25%
Hewlett-Packard Co. (HPQ) $13.82 +2.14%
Pfizer Inc. (PFE) $25.64 +1.89%
Alcoa Inc. (AA) $8.57 +1.78%
General Electric Co. (GE) $21.23 +1.77%
JP Morgan Chase & Co. (JPM) $41.20 +1.55%
Chevron Corp. (CVX) $105.17 +1.16%
Microsoft Corp. (MSFT) $26.67 +1.14%
Dow Jones I.A - Fallers
Mondelez International Inc. (MDLZ) $25.49 -1.01%
Wal-Mart Stores Inc. (WMT) $71.65 -0.65%
Intel Corp. (INTC) $19.85 -0.60%
International Business Machines Corp. (IBM) $188.65 -0.37%
Home Depot Inc. (HD) $64.02 -0.34%
McDonald's Corp. (MCD) $86.97 -0.26%
Boeing Co. (BA) $73.87 -0.24%
AT&T Inc. (T) $33.91 -0.03%
Merck & Co. Inc. (MRK) $44.39 -0.02% |
| Thursday newspaper round-up |
Deutsche Bank, Bank levies, Beer duty...
Deutsche Bank
failed to recognise up to 12bn dollars of paper losses during the
financial crisis, helping the bank avoid a government bail-out, three
former bank employees have alleged in complaints to US regulators. The
three complaints, made to regulators including the US Securities and
Exchange Commission, claim that Deutsche misvalued a giant position in
derivatives structures known as leveraged super senior trades, according
to people familiar with the complaints. [Financial Times]
George Osborne was accused of damaging the ability of banks to lend last night after increasing the level of the special levy on banks.
The Chancellor yesterday announced the fifth increase in the rate since
the inception of the tax in 2010, imposing a tax of 0.13 per cent of a
bank’s balance sheet from January 1, 2013. Currently banks must foot a
bill equivalent to 0.105 per cent of their balance sheet, a significant
increase on the 0.07 per cent rate first announced in June 2010. The
Treasury said the change would generate an extra £500 million a year for
the Exchequer from 2013-14.
However, the rate increase,
predicted in yesterday’s Times, caused anger from some parts of the
City. Mark Boleat, policy chairman at the City of London Corporation,
said: “The banking sector has been working hard to improve balance
sheets while mobilising capital and stands ready to pay its fair share
to support the economic recovery. What the banks, like all businesses,
require though is stability and predictably in the tax system so that
they can confidently plan for the future. In this context, a fifth
increase in the bank levy is unhelpful.” [The Times]
Hopes that a controversial yearly rise in beer duty
would be reviewed fell flat, prompting a warning from brewers that the
Government missed an opportunity to create 5,000 jobs this year. Pub
groups and brewers had hoped the Chancellor would heed a call from
backbench MPs last month to review the unpopular beer duty escalator,
which automatically increases taxes by 2pc above inflation every year.
The British Beer & Pub Association (BBPA) said the Government’s
refusal to reassess the escalator, which was introduced by the previous
Labour administration and has pushed up taxes in the sector by 40pc
since 2008, was particularly disappointing in light of the decision to
scrap next year’s 3p a litre rise in fuel duty. [The Telegraph]
Ireland
– the "poster child" for the International Monetary Fund and EU's
bailout programmes – endured its sixth hairshirt budget on Wednesday
with the imposition of €2.5bn (£2bn) of cuts as its finance minister
insisted the country is emerging from the fiscal crisis. The Republic
imposed a new property tax and cuts in child benefit as it strives
towards no longer relying on IMF and EU funds to run its public services
and social welfare. [The Guardian]
The maker of Hula Hoops and McCoy's has been sold to the German snacks group behind Pom-Bear in a deal worth $640m (£400m). United Biscuits,
which is owned by the private equity groups Blackstone and PAI
Partners, sold KP Snacks, which also makes Space Raiders, Nik Naks,
Skips, Discos, and Frisps, to Intersnack. United said it will retain
ownership of baked bagged snacks manufactured in its biscuit factories,
including Mini Cheddars and Twiglets. [The Independent]
Coal miner ATH Resources
fell into administration on Wednesday night after its lender, Jon
Moulton’s Better Capital, called in its loans. All five of the
Doncaster-based company’s open cast pits are in Scotland, where it
employs about 330 staff. The firm has blamed falling coal prices for its
woes. Brian Green, Allan Graham and William Wright from “big four”
accountancy firm KPMG were appointed as administrators of ATH Resources,
although its principal trading subsidiary – Aardvark TMC – is not in
administration and continues to trade. [The Scotsman]
Some national newspapers
will close as the industry is forced to confront the reality of
declining sales in a crowded market, according to the departing chief
executive of News International. Tom Mockridge told The Times that he
was an “unambiguous believer” that printed newspapers would survive the
shift of readers to websites but he predicted “some consolidation” of
titles. It emerged yesterday that The Guardian, which lost £44.2 million
last year, is considering funding future losses by selling its stake
inAuto Trader for up to £600 million. Last week the owner of The
Independent revealed that he was seeking an investor to share the pain
of his losses. [The Times]
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