London open: Markets helped higher by German sentiment
Market Movers
- techMARK 2,254.50 -0.11%
- FTSE 100 6,304.89 +0.17%
- FTSE 250 13,122.46 -0.08%
Stock markets began Tuesday's session moderately higher with German
sentiment data providing some support, as indices attempted to hold on
to their recent gains after an impressive start to 2013.
So far in January, the FTSE 100 has risen over 400 points, equal to a 6.9% jump.
"European financial markets are steady early Tuesday but […] investors
are still pausing for breath following the bumper rally this month which
has pushed markets to five-year highs with US stocks particularly not
far off their all-time highs," said market strategist Ishaq Siddiqi from
ETX Capital.
"Traders again are awaiting more data and
earnings before adjusting appetite for risk but have taken some comfort
in this morning's rebound in German consumer confidence which rose a
touch."
The forward-looking German GfK consumer confidence survey increased from 5.7 to 5.8 in February, ahead of forecasts for no change.
There are no other major economic indicators due for release in Europe
today, though markets will be keeping an eye out for consumer confidence
figures Stateside later on.
FTSE 100: Anglo up despite massive impairment
Diversified mining group Anglo American
gained despite saying it will recognise a $4.0bn impairment charge in
its 2012 results after completing a detailed cost and schedule review of
its Minas-Rio iron ore project in Brazil.
Real estate giant British Land
gamed after saying it continued to perform well in the third quarter
and saw "encouraging" levels of demand in spite of tough market
conditions.
Consumer products giant PZ Cussons fell
despite posting a rise in profits in line with market expectations. The
company, which owns Original Source shampoo, Morning Fresh washing up
liquid and Imperial Leather soap, reported a 9.7% increase in profits
before tax of £44.1m for the six months to November. Panmure Gordon said
that results were in line with forecasts.
National Grid was flat early on. The company reported "solid performance" reflecting good financial delivery for the October-January period.
FTSE 250: Strong final quarter for William Hill
Bookmaker William Hill was
a high riser after saying its good performance continued into its final
quarter after strong trading in retail and online. Net revenue grew by
12% in the 53 weeks to January 1st while operating profit was up 20%.
Carpet and floor coverings retailer Carpetright was
higher after it said store refurbishments and an expansion to its
laminate floor and bed ranges helped drive domestic sales in the third
quarter.
Under-pressure coal miner Bumi plc fell as its
boardroom battles escalate. The group this morning recommended
shareholders vote against resolutions put forward by founder Nathaniel
Rothschild to get rid of most of the company's directors, saying that
the proposed changes are "not the way forward".
Diamond producer Petra
fell despite reporting a 54% rise in first-half revenue. The company
said that production had increased by 31% to 1.2m carats in the first
six months of the year.
Tuesday February 05
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| Europe Market Report |
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| FTSE 100 | Euronext | Dax perf | CAC 40 |
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Europe open: EU could soften Spanish budget consolidation
- Southern European countries have yet to regain competitiveness -IFO
- Banks deposited 211.8bn euros overnight at ECB
- EU could soften Spain´s budget consolidation timeline
FTSE-100: 0.12%
Dax-30: 0.04%
Cac-40: -0.06%
FTSE Mibtel 30: -0.13%
Ibex 35: 0.00%
Stoxx 600: 0.06%
European equities are being called to consolidate recent gains ahead of
tomorrow´s US Federal Reserve policy meeting and a barrage of economic
data due out in the rest of the week. Not least is the US monthly
employment report due out next Friday.
Of great interest, the
European Union´s Economic Affairs Commissioner Olli Rehn yesterday
signaled that the possibility exists that the EU might tolerate
modifying the timeline for Spain to consolidate its budget.
Also worth pointing out are the remarks to be heard this morning out of
the German IFO Institute´s Chief Economist, Hans Werner Sinn, according
to whom most southern European nations hit by the crisis have not yet
undertaken sufficient measures so as to regain lost competitiveness.
Swedish tool and equipment maker Sandvik has reported fourth quarter profit of 728m kronor, missing the market's average forecast.
Software AG
has reported fourth-quarter profit of €50.7m, missing analysts'
estimates moderately. Revenue in the fourth quarter, however, came in at
€276m, well below forecasts.
Spain's Telefonica has
asked its banks to extend the maturity of €1.25bn ($1.7bn) of an
existing €2bn loan that expires in July 2016, according to Reuters.
Still on the equity front, but from a sector stand-point, the best
performing industrial groups are: Travel (0.44%), Utilities (0.37%) and
Real estate (0.36%). Technology is the worst.
Eurozone money supply below forecasts
The Gfk survey of German consumer sentiment improved slightly in February, to 5.8 after 5.7 in the month before.
Spanish retail sales fell by 10.7% year-on-year in December.
INSEE´s French consumer confidence index remained on an even keel in January, unchanged at 86 points, as expected.
Other asset clases steady
The euro/dollar is now rising by 0.06% to the 1.3454 dollar mark.
Front month Brent crude futures are now lower by 0.044 dollars to the 113.44 dollar mark on the ICE. |
| US Market Report |
US close: Markets pause after mixed economic data
- S&P finishes lower for first time in nine days
- Caterpillar rises despite profit slump
- Durable goods beat forecasts; pending homes sales miss
Dow Jones: -0.10%
Nasdaq Comp.: +0.14%
S&P 500:-0.20%
Mixed economic data resulted in a broadly flat end to Monday's session
in New York, with traders taking a breather following an impressive
start to 2013.
The S&P 500 finished with small losses,
snapping an eight-day winning streak, the longest run for the index
since November 2004. Nevertheless, the S&P managed to close at
1,500; Friday was the first time that it had closed above that level
since December 2007.
Monday's caution however should not come
as a surprise to investors, with the S&P up more than 5% so far in
January alone - this is the best start to a year the index has had since
1987.
"A pause is logical, but the main question is whether or not this indicates a correction", said analysts at Digital Look.
Better-than-expected durable goods orders lifted stocks after the opening bell, though gains were quickly trimmed after it pending home sales unexpectedly fell.
Caterpillar rises despite profit slump
Earth-moving equipment giant Caterpillar
was higher despite recording a 55% drop in fourth-quarter earnings
mainly due to lower sales of machinery and a big write-down. However,
shares rose after the company gave a cautiously optimistic outlook.
Chief Executive Officer Doug Oberhelman said: "If the recent
improvement in economic indicators continues, 2013 could be another
record year for Caterpillar".
A good showing by tech stocks helped the Nasdaq remain in positive territory today with social media titan Facebook
leading the way after Raymond James upgraded its recommendation for the
stock from 'market perform' to 'outperform'. Sector peers Apple, Hewlett Packard and Microsoft also finished higher.
After the closing bell, internet group Yahoo Inc
rose strongly after the company managed to beat Wall Street forecasts
despite posting a decrease in fourth-quarter earnings. The company made
an adjusted profit of 32 cents per share, ahead of the 27 cent-a-share
estimate.
Economic data comes in mixed
US
durable goods orders spiked higher in December, rising at a 4.6%
month-on-month clip, versus the 2.0% increase that was forecast.
The critical 'core' series for durable goods, which excludes both
Defense and civil aircraft, came in comfortably ahead of economists'
expectations, when revisions to November's data are taken into account
(although they are weak when compared with levels from a year ago).
US pending home sales fell by 4.3% month-on-month in December, compared with analysts' forecast for no change.
"The broad trend in pending home sales mirrors that of the broader
housing market and does not alter our view that the recovery in US
housing has sustained momentum," analysts at Barclays Research chipped
in.
S&P 500 - Risers
Sears Holdings Corp. (SHLD) $47.92 +6.21%
Hess Corp. (HES) $62.48 +6.08%
Xerox Corp. (XRX) $8.23 +3.78%
Western Union Co. (WU) $14.02 +3.62%
Cablevision Systems Corp. (CVC) $15.75 +3.62%
Staples Inc. (SPLS) $13.37 +3.08%
Tesoro Corp. (TSO) $45.83 +2.80%
Chipotle Mexican Grill Inc. (CMG) $311.69 +2.71%
E*TRADE Financial Corp. (ETFC) $10.60 +2.61%
Amgen Inc. (AMGN) $85.59 +2.60%
S&P 500 - Fallers
Netflix Inc. (NFLX) $162.11 -4.39%
Southwestern Energy Co. (SWN) $33.25 -3.98%
Alpha Natural Res (ANR) $8.89 -3.47%
Lockheed Martin Corp. (LMT) $89.32 -3.32%
United States Steel Corp. (X) $23.72 -3.30%
PulteGroup Inc. (PHM) $20.96 -3.28%
Whirlpool Corp. (WHR) $106.29 -3.09%
CONSOL Energy Inc. (CNX) $31.11 -3.02%
PPG Industries Inc. (PPG) $140.00 -2.92%
Weyerhaeuser Co. (WY) $30.06 -2.88%
Dow Jones I.A - Risers
Caterpillar Inc. (CAT) $97.45 +1.96%
General Electric Co. (GE) $22.50 +0.94%
Procter & Gamble Co. (PG) $73.77 +0.71%
McDonald's Corp. (MCD) $94.36 +0.68%
Wal-Mart Stores Inc. (WMT) $69.35 +0.51%
Intel Corp. (INTC) $21.05 +0.43%
AT&T Inc. (T) $34.13 +0.32%
Verizon Communications Inc. (VZ) $42.77 +0.23%
Hewlett-Packard Co. (HPQ) $17.02 +0.18%
Microsoft Corp. (MSFT) $27.91 +0.11%
Dow Jones I.A - Fallers
Alcoa Inc. (AA) $8.90 -1.44%
Boeing Co. (BA) $74.00 -1.37%
Travelers Company Inc. (TRV) $77.35 -1.28%
Merck & Co. Inc. (MRK) $42.93 -1.22%
Bank of America Corp. (BAC) $11.48 -1.20%
JP Morgan Chase & Co. (JPM) $46.64 -1.10%
American Express Co. (AXP) $59.07 -0.72%
Exxon Mobil Corp. (XOM) $91.11 -0.68%
Pfizer Inc. (PFE) $26.84 -0.59%
Cisco Systems Inc. (CSCO) $21.06 -0.43%
Nasdaq 100 - Risers
Sears Holdings Corp. (SHLD) $47.92 +6.21%
Baidu Inc. (BIDU) $111.39 +3.13%
Staples Inc. (SPLS) $13.37 +3.08%
Facebook Inc. (FB) $32.47 +2.95%
Amgen Inc. (AMGN) $85.59 +2.60%
Biogen Idec Inc. (BIIB) $149.99 +2.59%
Apple Inc. (AAPL) $449.83 +2.26%
Nuance Communications Inc. (NUAN) $24.02 +1.87%
Maxim Integrated Products Inc. (MXIM) $32.20 +1.80%
Nvidia Corp. (NVDA) $12.61 +1.61%
Nasdaq 100 - Fallers
Amazon.Com Inc. (AMZN) $276.04 -2.80%
Bed Bath & Beyond Inc. (BBBY) $58.51 -2.12%
Catamaran Corp (CTRX) $52.13 -2.07%
Regeneron Pharmaceuticals Inc. (REGN) $170.90 -2.05%
Vertex Pharmaceuticals Inc. (VRTX) $45.92 -1.99%
Priceline.Com Inc. (PCLN) $704.98 -1.93%
Perrigo Company (PRGO) $101.35 -1.72%
Life Technologies Corp. (LIFE) $62.60 -1.40%
Starbucks Corp. (SBUX) $56.02 -1.39%
Ross Stores Inc. (ROST) $60.31 -1.28% |
|
| FX and Commodities round-up |
FX round-up: Dollar hangs onto modest advance
The
dollar retained modest gains against major currencies on Monday as the
latest data on the US economy offered a mixed picture.
The
Commerce Department said December US durable goods orders rose 4.6% from
the month before, way ahead of forecasts of a 2% rise.
However fresh housing data from the US fell short of expectations. The
National Association of Realtors' said its pending homes sales index
fell 4.3% last month.
Traders are also gearing up for a busy
economic week in the US with the first estimate of fourth-quarter
economic growth out on Wednesday and January nonfarm payrolls readings
on Friday.
Meanwhile this week's monetary policy decision from
the Federal Reserve is not expected to hold any surprises, with the US
central bank expected to keep a dovish stance.
The dollar
index, which tracks the greenback against six major currencies, rose to a
session high of 79.926 before later slipping back to 79.790, up from
79.762 on Friday.
The dollar was boosted to the day's highs
after the durable goods data but momentum later faded as investors
recoiled after the housing data.
The euro changed hands at
$1.3457 versus $1.3459 on Friday but many analysts the single currency
could rise towards the psychologically important $1.35 level as
investors cheer the increasingly brighter outlook for the Eurozone and
recently strong data from Germany.
Sterling was down 0.04% at $1.5693 after gloomy UK growth data out on Friday.
Commodities: Oil gains traction after mixed data
Crude
oil futures advanced on Monday as traders mulled a mixed bag of
economic data and after an OPEC official said oil prices are expected to
remain stable through 2013.
Oil prices were supported by the
latest figures from the Commerce Department which showed December US
durable goods orders rose 4.6% from the month before, much bigger than
forecasts of a 2% rise.
However fresh housing data from the
world's biggest oil consumer disappointed. The National Association of
Realtors' said its pending homes sales index fell 4.3% last month.
Crude for March delivery beefed up 56 cents to settle at $96.44 a barrel on the New York Mercantile Exchange.
Also giving oil prices a lift were comments from OPEC's
secretary-general Abdalla Salem el-Badri who said there shouldn't be any
concern about a collapse of oil prices in 2013 and expects oil prices
to remain stable.
Over on the ICE futures exchange, Brent for March delivery gained 20 cents to settle at $113.48 a barrel.
Among precious metals gold continued its downward march, with futures
settling lower for the fourth consecutive session, as the stronger
dollar and mixed US economic data eroded appetite for the yellow metal.
Bullion for February delivery retreated $3.70 to settle at $1,652.90 an
ounce on the Comex division of the New York Mercantile Exchange.
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