ADVFN Evening Euro Markets Bulletin February 11, 2013.

ADVFN III Evening Euro Markets Bulletin

Daily world financial news Monday, 11 February 2013

London Market Report

FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts

London close: Subdued finish to a quiet day Market Movers techMARK 2,288.32 -0.06% FTSE 100 6,277.06 +0.21% FTSE 250 13,373.63 -0.01% The FTSE 100 was swinging between gains and losses for most of Monday's session with markets across Europe lacking direction on a quiet day. "Global markets are trading lower today which may be related to the significant strength within the markets within 2013," said market analyst Craig Erlam from Alpari. "An overall lack of noteworthy market worthy news and data has allowed traders the freedom to base their trading decisions more upon previous sentimental convictions, along with more technical trading. The Chinese absence from the market also removes many of the more optimistic minded traders." Meanwhile, senior market analyst Michael Hewson from CMC Markets said that markets are "sitting tight" ahead of the conclusion of today's meeting of European finance ministers, "where the topic of conversation is likely to be the recent rise in the value of the euro." It is also predicted that the Eurogroup will discuss the contentious bailout of Cyprus and its banks, estimated to be around 17.5bn, though no final decision is expected to be made. In other news, Goldman Sachs cut global equities from 'overweight' to 'neutral' on a three-month view (though it remains 'overweight on a 12-month view). The bank said on Friday: "some US fiscal uncertainty remains and the European sovereign situation could deteriorate again, but we see risks as smaller than last year." FTSE 100: Miners mixed as Randgold and Rio fall The mining sector was putting in mixed performance this afternoon, with ENRC, EVRAZ and Polymetal among the highest risers. However, gold miner Randgold Resources was trading firmly lower as the price of the precious metal took a hit. Rio Tinto was also in the red despite the Australian Competition Tribunal ruling that its Hamersley and Robe rail network should not be opened up to other users. Supermarket stocks were on shopping lists today, with retail giant Tesco making gains after an upgrade by Exane BNP Paribas from 'underperform' to 'neutral'. The broker said that company is "beginning to move in the right direction" despite concerns about its overseas activities. Rival retailers Morrison and Sainsbury were also performing well this afternoon. Banking group Barclays was on the up ahead of its full-year results and conclusion of its strategic review out tomorrow. Media reports suggest that the lender plans to reduce costs by at least 2.0bn and cut 2,000 jobs in investment banking. Industrial project management and construction group Wood Group fell despite announcing that it has won a contract for an offshore oil & gas production facility in the Norwegian part of the North Sea. FTSE 250: Ocado extends gains on M&A speculation Online grocer Ocado surged today following its well-received final results on Thursday. Reuters cited a London trader today as saying that there have been rumours that a retailer without an online presence (like Morrisons) could launch a big for the firm. Trading systems developer Fidessa gained experiencing a 'marked and positive change of sentiment in the market' in recent months. Third-quarter power generation at Essar Energy almost doubled, causing shares to rise today. Power generation rose 93% to 2,862m units compared to 1,481m units in the same quarter a year earlier.

FTSE 100 - Risers Eurasian Natural Resources Corp. (ENRC) 395.80p +4.79% Evraz (EVR) 296.00p +2.60% Morrison (Wm) Supermarkets (MRW) 256.10p +2.40% Aviva (AV.) 362.20p +1.48% Tesco (TSCO) 367.90p +1.46% Sage Group (SGE) 334.40p +1.15% Bunzl (BNZL) 1,153.00p +1.05% Kazakhmys (KAZ) 753.00p +1.01% Royal Dutch Shell 'A' (RDSA) 2,148.00p +0.99% Barclays (BARC) 301.50p +0.97% FTSE 100 - Fallers Randgold Resources Ltd. (RRS) 5,845.00p -2.58% Whitbread (WTB) 2,645.00p -1.75% ARM Holdings (ARM) 903.50p -1.69% Burberry Group (BRBY) 1,345.00p -1.47% Experian (EXPN) 1,080.00p -1.46% Weir Group (WEIR) 2,093.00p -1.41% Wood Group (John) (WG.) 808.00p -1.22% InterContinental Hotels Group (IHG) 1,896.00p -1.15% International Consolidated Airlines Group SA (CDI) (IAG) 216.10p -1.10% ITV (ITV) 115.60p -1.03% FTSE 250 - Risers Ocado Group (OCDO) 127.30p +7.52% Petra Diamonds Ltd.(DI) (PDL) 119.80p +6.30% Fidessa Group (FDSA) 1,577.00p +3.27% Man Group (EMG) 100.80p +2.96% Bwin.party Digital Entertainment (BPTY) 139.60p +2.80% New World Resources A Shares (NWR) 282.00p +2.47% Essar Energy (ESSR) 144.30p +2.34% Ophir Energy (OPHR) 487.80p +2.26% Rank Group (RNK) 152.20p +2.01% Bumi (BUMI) 385.10p +1.88% FTSE 250 - Fallers Telecity Group (TCY) 827.50p -4.22% Menzies(John) (MNZS) 727.00p -3.71% Stobart Group Ltd. (STOB) 95.00p -3.06% Dunelm Group (DNLM) 791.50p -2.64% Brewin Dolphin Holdings (BRW) 204.30p -2.44% St. Modwen Properties (SMP) 249.00p -2.12% Domino Printing Sciences (DNO) 648.00p -2.11% Taylor Wimpey (TW.) 73.60p -2.06% Barratt Developments (BDEV) 222.00p -1.81% Debenhams (DEB) 97.60p -1.81%

Europe Market Report

FTSE 100 Euronext Dax perf CAC 40

Europe midday: Currency jitters palpable in markets - US and Europe may adopt common stance on currency devaluations -WSJ - Eurozone finance ministers studying possible 'bail-in' of Cyprus - Goldman Sachs lowers view on equities to neutral FTSE-100: 0.20% Dax-30: -0.08% Cac-40: 0.48% FTSE Mibtel 30: -0.55% Ibex 35: -0.49% Stoxx 600: -0.35% European stocks are still seeing some slight selling pressure at the midday mark ahead of this evenings meeting of the so-called Eurogroup. Eurozone finance ministers are expected to discuss the need and possible modalities of a bail-out of Cyprus and its banks. Also on the agenda may be the recent sharp moves in currency markets, especially ahead of this weeks meeting of G20 finance ministers, where the matter is expected to be discussed. Particularly worth noting, according to The Financial Times a radical new option (one of three being studied) for the financial rescue of Cyprus would force losses on uninsured depositors in Cypriot banks, as well as investors in the country's sovereign bonds. Of interest, the recent rise in periphery sovereign risk premiums has had a dampening effect on investor demand for Southern European equities, the latest data from EPFR Global shows. Such funds saw $264m in redemptions last week. For its part, last Friday Goldman Sachs went neutral (from overweight) on global equities on a three month view, although it remains overweight on a 12 month view. According to their strategists, "some US fiscal uncertainty remains and the European sovereign situation could deteriorate again, but we see risks as smaller than last year." Speaking over the weekend however ECB council member Jorg Asmussen was cited as saying that an agreement on how to rescue Cyprus is likely by the end of the March. Acting as a backdrop, The Wall Street Journal reports that US and European leaders are preparing to adopt a common stance as regards the need for 'market driven' exchange rates ahead of this weeks meeting of G-20 finance ministers. It would seem that the rapid pace of Yen weakness has set off fears of a possible round of competitive devaluations. Novo Nordisk plummets Novo Nordisk has failed to win approval from US regulatory authorities for a new insulin treatment as regulators seek to better assess heart risk. Shares of the company are now falling by 12%. Dutch retailer Ahold has sold its 60% stake in Swedish supermarket chain ICA for approximately 20bn Swedish kronas ($3.1bn) to Hakon Invest. Troubled Italian lender Monte Paschi di Siena is ready to clear the way to receive 3.9bn ($5.2bn) in state backing in a "very short time", according to remarks from the bank's Chairman. From a sector stand-point the worst performers today are: Travel (-0.89%), Basic resources (-0.81%) and Oil (-0.75%). Light data calendar French manufacturing sector output increased by 0.1% month-on-month in December in spite of industrial production as a whole decreasing by the same amount. Other asset classes trading mixed The euro/dollar is now edging higher by 0.15% to 1.3390. Front month Brent crude futures are falling, by 0.643 dollars to the 118.14 dollar level on the ICE.

US Market Report

US open: Stocks decline early on, Google provides a drag US stocks started Monday's session in negative territory as the focus turned to a meeting of finance ministers in the Eurozone. The Eurogroup is expected to discuss the need (and possible modalitie) of a bailout of Cyprus and its banks. Also on the agenda may be the recent sharp moves in currency markets, especially ahead of this week's meeting of G20 finance ministers, where the matter is expected to be discussed. "The markets will be specifically looking for any news releases as to the next plan-of-action policy officials will take in order to ensure the Eurozone debt crisis remains under control," said financial trader Shavaz Dhalla from Spreadex. Meanwhile in US news, according to a Democratic party aide cited by Bloomberg, Senate Democrats are close to proposing a $120bn plan for a 10-month delay in spending cuts set to begin March 1st, the so-called 'sequestration'. That comes after weekend remarks from Democrats and Republicans which show they still remain divided on whether new increases in taxes remain necessary. Google falls on Schmidt sale Internet giant Google was under pressure early on after saying late Friday that its Chairman Eric Schmidt is planning to offload nearly half of his shares in the firm for around $2.5bn. The company said that the sale of 3.2m shares of his Class A stock, equal to 42% of his stake, will take place over the next year. Sector peer AOL surged after RBS Capital Markets upgraded its rating on the stock from 'sector perform' to 'outperform' and raised the target from $40 to $45. Sports apparel and equipment group Nike also gained after JPMorgan Chase & Co upped its stance from 'neutral' to 'overweight'. Meanwhile, retail group Kroger Co was performing well after Goldman Sachs raised its recommendation from 'sell' to ' neutral'. Other markets In morning trade in New York, the euro/dollar was up 0.03% at 1.3369. Front-month Brent crude futures were down $0.95 dollars at the $117.91-a-barrel level on the ICE. S&P 500 - Risers Hospira Inc. (HSP) $35.26 +2.20% Moody's Corp. (MCO) $44.24 +2.01% Nike Inc. (NKE) $55.61 +1.87% Perrigo Company (PRGO) $110.27 +1.82% Harley-Davidson Inc. (HOG) $53.76 +1.70% CSX Corp. (CSX) $22.32 +1.59% Tesoro Corp. (TSO) $54.65 +1.47% Kroger Co. (KR) $28.57 +1.31% CONSOL Energy Inc. (CNX) $32.13 +1.26% McGraw-Hill Companies Inc. (MHP) $43.09 +0.98% S&P 500 - Fallers Amgen Inc. (AMGN) $85.35 -1.64% Newfield Exploration Co (NFX) $29.28 -1.38% Constellation Brands Inc. Class A (STZ) $31.42 -1.35% Netflix Inc. (NFLX) $178.73 -1.24% Estee Lauder Co. Inc. (EL) $61.98 -1.23% Fifth Third Bancorp (FITB) $16.42 -1.14% Newmont Mining Corp. (NEM) $44.42 -1.14% Hess Corp. (HES) $66.61 -1.13% WellPoint Inc. (WLP) $65.54 -1.12% Sigma-Aldrich Corp. (SIAL) $76.80 -1.11% Dow Jones I.A - Risers Cisco Systems Inc. (CSCO) $21.31 +0.71% Microsoft Corp. (MSFT) $27.67 +0.45% Pfizer Inc. (PFE) $26.93 +0.20% United Technologies Corp. (UTX) $90.27 +0.20% Merck & Co. Inc. (MRK) $41.23 +0.12% Walt Disney Co. (DIS) $54.71 +0.09% AT&T Inc. (T) $35.29 +0.06% Caterpillar Inc. (CAT) $96.90 +0.05% International Business Machines Corp. (IBM) $201.75 +0.03% Verizon Communications Inc. (VZ) $44.36 +0.02% Dow Jones I.A - Fallers Wal-Mart Stores Inc. (WMT) $70.80 -0.95% Unitedhealth Group Inc. (UNH) $57.43 -0.54% Boeing Co. (BA) $76.19 -0.48% Exxon Mobil Corp. (XOM) $88.19 -0.47% American Express Co. (AXP) $61.53 -0.44% Chevron Corp. (CVX) $115.15 -0.42% 3M Co. (MMM) $102.27 -0.38% Home Depot Inc. (HD) $66.76 -0.37% Procter & Gamble Co. (PG) $75.47 -0.37% JP Morgan Chase & Co. (JPM) $48.49 -0.29% Nasdaq 100 - Risers Starz Class A (STRZA) $17.55 +5.28% Perrigo Company (PRGO) $110.27 +1.82% Monster Beverage Corp (MNST) $47.28 +0.94% Analog Devices Inc. (ADI) $46.10 +0.88% Micron Technology Inc. (MU) $7.81 +0.77% Cisco Systems Inc. (CSCO) $21.31 +0.71% Sirius XM Radio Inc (SIRI) $3.14 +0.64% Fiserv Inc. (FISV) $80.97 +0.61% Apple Inc. (AAPL) $477.86 +0.61% Dollar Tree Stores Inc. (DLTR) $41.30 +0.58% Nasdaq 100 - Fallers Randgold Resources Ltd. Ads (GOLD) $92.13 -2.21% Amgen Inc. (AMGN) $85.35 -1.64% Sigma-Aldrich Corp. (SIAL) $76.80 -1.11% Altera Corp. (ALTR) $35.00 -1.07% Intuitive Surgical Inc. (ISRG) $573.38 -0.93% Liberty Global Inc. Series A (LBTYA) $67.39 -0.91% Google Inc. (GOOG) $778.67 -0.85% eBay Inc. (EBAY) $56.22 -0.71% Expedia Inc. (EXPE) $65.20 -0.69% Nuance Communications Inc. (NUAN) $19.87 -0.65%

Broker Tips

Broker tips: AMEC, Fidessa, Ophir Energy AMEC, the engineering and project management group which is due to release its full-year results this Thursday, has been labelled as a 'buy' by Seymour Pierce. "The shares have underperformed the market by 4.3% in the last three months and by 8.4% in the last year. They now trade at a discount to the Oil Service and Engineering Service peers on 11.5 times FY13 earnings. We leave our current estimates unchanged at this stage but note there is possibly room to upgrade." Panmure Gordon has raised its target for trading systems developer Fidessa from 1,243p to 1,396p, following the forecast-beating final results released Monday. However, the broker has retained its 'hold' recommendation on the shares, saying that the stock is still "too expensive and the halcyon days are long gone". Credit Suisse has reiterated its 'outperform' rating and 930p target for Africa-focused oil & gas group Ophir Energy, highlighting the firm's improving asset base in Gabon and Tanzania. "Bottom line: current discoveries largely underpin the current share price with little risked exploration priced in," the broker said on Monday morning.