London open: Markets 'pause for breath' after recent gains
Market Movers
- techMARK 2,257.21 -0.03%
- FTSE 100 6,278.54 -0.09%
- FTSE 250 13,139.05 +0.02%
The FTSE 100 started Monday's session broadly unchanged as confidence
about China provided some support, helping the FTSE 100 hold on to gains
made in recent weeks.
Impressive economic data helped drive a
2.1% rise on the Footsie last week, including better-than-expected
readings of Chinese and American manufacturing, US jobless claims and
German sentiment. Since the start of 2012, London's benchmark index has
jumped an impressive 6.6%.
However, analyst Ishaq Siddiqi from ETX Capital said that markets would "pause for breath" today
"with high profile earnings from both the US and Europe in full swing,
together with an onslaught of tier-one economic data due during the
course of this week".
He said: "An encouraging earnings season in the US so far bodes well for the European corporate results,
with traders now less cautious about the health of the corporate sector
compared to the fears that weighed on the market earlier in the month."
Helping sentiment today were comments made by Stephen Green,
the head of research for Greater China at Standard Chartered, who said
that Chinese industrial profits should rise by 30% in 2013 on
average as a result of investment in infrastructure and real estate,
improvements in export demand and looser monetary conditions.
Economist Lu Ting from Bank of America Merrill Lynch meanwhile expects profits to grow by 25% in the first half of this year.
New World Resources sees prices plunge
New World Resources
slumped early on after saying that the price it could sell its thermal
coal in 2013 had tumbled as the market was hit by oversupply. The
company managed to negotiate an average price of €60 per tonne for 2013
thermal coal deliveries, a 19% fall on 2012 prices.
Broadcaster ITV
was in the red after acquiring the freehold of London Television Centre
for £56m. According to the company, the purchase gives ITV flexibility
in its property strategy as it continues to rebalance the business.
Budget airline easyJet
was lower after revealing that its Chairman, Sir Mike Rake, would step
down this summer. The move comes after three years of high-profile
public arguments between management and easyJet founder Sir Stelios
Haji-Ioannou about how the company is run.
Outsourcing group Mitie
gained after saying that it is performing in line with expectations as
strong organic growth has been driven by new and expanded contracts.
Building materials supplier Travis Perkins edged higher after saying its new Finance Director, Tony Buffin, will start at the firm in April.
| UK Calendar |
Monday February 04
INTERIM DIVIDEND PAYMENT DATE
BT Group, Mitie Group
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Producer Price Index (EU) (10:00)
Q4
Randgold Resources Ltd.
FINALS
Randgold Resources Ltd.
IMSS
888 Holdings
AGMS
Future
TRADING ANNOUNCEMENTS
888 Holdings
UK ECONOMIC ANNOUNCEMENTS
PMI Construction (09:30)
FINAL DIVIDEND PAYMENT DATE
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| Europe Market Report |
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| FTSE 100 | Euronext | Dax perf | CAC 40 |
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Europe open: Periphery credit conditions eyed
- Slightly weaker than expected Eurozone money supply data
- Italian debt auction on tap
- Deposits at Greek Banks rose by 4 per cent in December
- Banks deposited 207.2bn euros at ECB overnight
FTSE-100: -0.05%
Dax-30: -0.04%
Cac-40: -0.07%
FTSE Mibtel 30: 0.49%
Ibex 35: 0.10%
Stoxx 600: -0.08%
The main European equity indices have started the day slightly lower
despite the latest gains seen in equities on Wall Street and in Asia.
Of interest, inflows into equity funds – mostly into emerging markets
admittedly - sustained a seventh consecutive rise last week ahead of
bond oriented ones, although the rate of flows moderated, according to the latest data from EPFR.
That as investors analyse the just released Eurozone money supply data
for any hints that financial conditions in the periphery are continuing
to ease.
Out in the corporate patch, Monte dei Paschi di Siena, announced yesterday that it is looking for a 'white knight' investor to help revive its ailing fortunes.
French oil major Total´s Elgin gas field will not resume full output for months or even years, the company´s Chief Executive Christophe de Margerie said.
Italy will sell up to €3-4bn of new December 2014 short-term debt and €2-2.75bn of new five year debt later in the morning.
Back on the equity front, and from a sector stand-point, the worst
performing industrial groups are: Travel (-0.71%), Chemicals (-0.54%)
and Oil (-0.45%).
Eurozone money supply below forecasts
The growth rate of Eurozone money supply accelerated to 3.7% from 3.4% a year ago (Consensus: 3.8%).
ISAE´s Italian business confidence index for the month of January slipped to 84.6 from 85.7 a month before (Consensus: 86.1).
Other asset classes lower
The euro/dollar is now falling by 0.20% to the 1.3430 dollar mark.
Front month Brent crude futures are now lower by 0.310 dollars to the 112.93 dollar mark on the ICE.
| US Market Report |
US close: Stocks rise as earnings impress
- S&P registers longest winning streak since 2004
- P&G, Starbucks and Halliburton impress
- Apple loses 'most valuable' title to Exxon
Dow Jones: 0.51%
Nasdaq Comp.: 0.63%
S&P 500: 0.55%
US stocks finished with decent gains on Friday on the back of several
better-than-expected corporate results, helping the S&P 500 to close
above the key 1,500 level for the first time since December 2007.
This is the eight-straight day that the S&P 500 has registered gains, the longest winning streak since November 2004.
Strong earnings from Procter & Gamble, Starbucks and Halliburton lifted sentiment today, giving traders an excuse to shrug off disappointing home sales data.
Exiting home sales unexpectedly fell in December to an annualised rate
of 369,000, down from 385,000 the month before (revised up from
377,000). Analysts were expecting a reading of 385,000.
Markets were also having to digest some mixed newsflow from Europe
on Friday before the opening bell: UK GDP declined more than expected
in the fourth quarter of 2012, while the German IFO business climate
index topped expectations in January.
P&G, Starbucks and Halliburton impress
Household products giant Procter & Gamble
finished up 4.02% after earnings more than doubled in its fiscal
second-quarter. The company also raised its profit guidance for the full
year.
Coffee chain group Starbucks was in demand after seeing net earnings gain 14% year-on-year, with sales in its domestic market beating expectations.
Oil services titan Halliburton also rose despite net income falling 26%. Shares still finished 5.05% after the company beat Wall Street forecasts.
Software giant Microsoft managed to finish slightly higher despite missing quarterly earnings and revenue estimates.
Meanwhile, smartphone and gadget group Apple
finished in the red again, following a sell-off the day before, as
brokers across the States moved quickly to slash their price targets
after the company's fiscal first-quarter results disappointed.
Specifically, Goldman Sachs reduced its target for the stock by $100 to
$660m.
After this week's falls, Apple has lost its title of the world's most valuable company by market capitalisation, with Exxon Mobil overtaking the iPhone maker to the number-one spot.
S&P 500 - Risers
Netflix Inc. (NFLX) $169.56 +15.46%
KLA-Tencor Corp. (KLAC) $56.34 +8.41%
VeriSign Inc. (VRSN) $42.96 +7.43%
Lam Research Corp. (LRCX) $41.84 +5.87%
Priceline.Com Inc. (PCLN) $718.82 +5.78%
Halliburton Co. (HAL) $39.72 +5.05%
Juniper Networks Inc. (JNPR) $22.57 +4.98%
Expedia Inc. (EXPE) $66.49 +4.89%
Teradata Corp. (TDC) $69.34 +4.27%
Starbucks Corp. (SBUX) $56.81 +4.10%
S&P 500 - Fallers
Hasbro Inc (HAS) $37.31 -2.96%
Yum! Brands Inc. (YUM) $64.63 -2.65%
R.R. Donnelley & Sons Co. (RRD) $9.01 -2.59%
Actavis Inc (ACT) $84.27 -2.50%
Apple Inc. (AAPL) $439.88 -2.36%
Mattel Inc. (MAT) $37.15 -2.34%
Weyerhaeuser Co. (WY) $30.95 -1.75%
Sealed Air Corp. (SEE) $18.62 -1.64%
Amerisource Bergen Corp. (ABC) $45.03 -1.51%
Newmont Mining Corp. (NEM) $43.36 -1.48%
Dow Jones I.A - Risers
Procter & Gamble Co. (PG) $73.25 +4.02%
JP Morgan Chase & Co. (JPM) $47.16 +1.70%
Johnson & Johnson (JNJ) $73.92 +1.12%
General Electric Co. (GE) $22.29 +1.09%
Merck & Co. Inc. (MRK) $43.46 +1.07%
United Technologies Corp. (UTX) $89.79 +0.98%
3M Co. (MMM) $100.59 +0.92%
Microsoft Corp. (MSFT) $27.88 +0.90%
AT&T Inc. (T) $34.02 +0.80%
Walt Disney Co. (DIS) $54.38 +0.80%
Dow Jones I.A - Fallers
Wal-Mart Stores Inc. (WMT) $69.00 -1.13%
Caterpillar Inc. (CAT) $95.58 -1.06%
Boeing Co. (BA) $75.03 -0.39%
Unitedhealth Group Inc. (UNH) $56.04 -0.32%
Coca-Cola Co. (KO) $37.05 -0.16%
Hewlett-Packard Co. (HPQ) $16.99 -0.12%
Alcoa Inc. (AA) $9.03 -0.11%
Nasdaq 100 - Risers
KLA-Tencor Corp. (KLAC) $56.34 +8.41%
Priceline.Com Inc. (PCLN) $718.82 +5.78%
Expedia Inc. (EXPE) $66.49 +4.89%
Starbucks Corp. (SBUX) $56.81 +4.10%
Amazon.Com Inc. (AMZN) $283.99 +3.79%
Autodesk Inc. (ADSK) $38.99 +3.70%
Nuance Communications Inc. (NUAN) $23.58 +3.38%
Citrix Systems Inc. (CTXS) $71.55 +3.05%
Life Technologies Corp. (LIFE) $63.49 +2.97%
eBay Inc. (EBAY) $56.53 +2.43%
Nasdaq 100 - Fallers
Apple Inc. (AAPL) $439.88 -2.36%
Mattel Inc. (MAT) $37.15 -2.34%
Randgold Resources Ltd. Ads (GOLD) $94.77 -1.39%
Monster Beverage Corp (MNST) $46.71 -1.18%
QUALCOMM Inc. (QCOM) $63.66 -1.15%
Vertex Pharmaceuticals Inc. (VRTX) $46.85 -0.99%
Texas Instruments Inc (TXN) $32.80 -0.88%
Sba Communications Corp. (SBAC) $71.35 -0.70%
Sears Holdings Corp. (SHLD) $45.12 -0.62%
Intuitive Surgical Inc. (ISRG) $577.82 -0.55% |
| FX and Commodities round-up |
FX round-up: Euro surges against dollar
The
euro rallied against most major currencies on Friday after European
banks said they would pay back a bigger than expected 137bn euros in
loans, the latest sign of financial recovery in the Eurozone region.
The single currency gained 0.6% to $1.3453, after hitting a high of
$1.3479 earlier in the session, a level not seen since last February.
Over the week, the euro was up over 1% against the dollar.
The
European Central Bank said 278 banks would repay €137.2bn of the
December LTRO on January 30th, the earliest date for repayments.
The euro also firmed to ¥122.36 from ¥120.90 previously.
Market sentiment was also boosted by a survey showing improved German
business confidence. The German IFO Institute's business climate index
for January surged to 104.2 points, its highest level since last June,
and up from 102.4 for the previous month. It also beat a consensus view
of 103.0.
The dollar index, which measures the US unit against
a basket of six major currencies, slipped to 79.762 from 79.974 on
Thursday.
Against the yen, the dollar bought ¥90.94 compared to ¥90.38 before.
Sterling changed hands at $1.5804 from $1.5787 previously as investors mulled disappointing GDP data.
The UK economy contracted by 0.3% during the fourth quarter of 2012, worse then the 0.1% GDP decline predicted.
Commodities: Crude slips on Seaway pipeline concern
Disappointing US home sales data and jitters about the outlook for energy demand took crude oil futures lower on Friday.
Exiting home sales unexpectedly fell in December to 369,000 for the
year, down from 385,000 the month before, which was revised up from
377,000. The results fell short of analyst expectations of 385,000.
Focus also remained on the Seaway Pipeline, a key oil pipeline, which
has restricted capacity. There is concern that supplies will swell at
the Midwest delivery point for the contract.
Capacity at the
Seaway pipeline was increased this month to 400,000 barrels per day from
150,000 barrels, however on Wednesday, Enterprise Products Partners
confirmed that it had cut its Seaway pipeline oil deliveries by more
than half as a refinery in Texas undergoes maintenance.
Crude
oil for March delivery on the New York Mercantile Exchange settled down 7
cents at $95.88 a barrel. Crude traded at an intra-day low of $95.43
and a high of $96.56 a barrel and over the week March crude fell 16
cents.
On the ICE futures exchange ICE North Sea Brent crude oil closed the session unchanged at $113.28 a barrel.
Among precious metals gold futures also settled lower on Friday, marking its third consecutive day of declines.
Gold for February delivery fell $13.30 to settle at $1,656.60 an ounce
on the Comex division of the New York Mercantile Exchange. Over the
week, bullion was down nearly 2%.
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