ADVFN III Evening Euro Markets Bulletin February 8, 2013.

ADVFN III Evening Euro Markets Bulletin

Daily world financial news Friday, 08 February 2013

London Market Report

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

Stocks finish higher after decent economic data     Market Movers     techMARK 2,289.78 +0.17%     FTSE 100 6,263.93 +0.57%     FTSE 250 13,375.25 +0.56% The FTSE 100 finished strongly on Friday afternoon as better-than-expected economic data from across the globe offset yesterday’s gloomy comments from Mario Draghi which sparked a sell-off. Markets across Europe suffered steep falls on Thursday - London's FTSE 100 dropped 1.06% - after European Central Bank (ECB) President Mario Draghi said that the recent rise in the euro could post a threat to the inflation outlook and hamper the recovery across the continent. He also claimed that the recovery across the region would not start until later in the year. FTSE 100: GKN gains on strong Chinese auto data Engineering and auto group GKN was in demand today after it was reported that Chinese passenger-vehicles sales jumped by 49% year-on-year to a record 1.73m units last month, better than expected, driven by strong demand for SUVs in the all-important pre-Lunar New Year shopping period. Just under a quarter of GKN’s Driveline vehicles were produced in China in the first half of the year. Temporary power and temperature controls firm Aggreko was higher after HSBC upgraded the stock to 'neutral'. There was also some 'market chatter' speculating that Aggreko could be a bid target for ABB. Engineering group Weir was also on the up after UBS raised its target from 2,000p to 2,300p and reiterated its 'buy' rating on the stock. The broker cited positive read-across from recent results from sector peers Metso and Outotec. Pushing airline IAG higher was the mounting speculation that a merger agreement could be fast approaching for bankrupt US carrier, American Airlines and US Airways. Anglo American rose after HSBC upped its target from 1,950p to 2,240p and upgraded it to ‘overweight’. Imperial Tobacco was a heavy faller after Investec downgraded the stock from 'buy' to 'hold', saying: "There is support from the valuation and the prospect of a takeout. But we don’t think the latter is imminent enough and while IMT looks ‘cheap’, it doesn’t look that cheap in the current Darwinian climate.” Water provider Severn Trent was also lower after announcing that it has sold its Analytical Services division to Australian testing inspection and certification (TIC) group ALS for an undisclosed sum. FTSE 250: bwin.party gains on New Jersey hopes Online gaming firm bwin.party jumped on speculation that it could receive a licence to operate in New Jersey. "Now is the time for the state to move forward, leading the way for the nation, by becoming one of the first states to permit internet gaming," New Jersey's Governor Chris Christie was quoted as saying. Sector peers Playtech and Betfair were also higher. Office provider Workspace was wanted after saying that demand for space remains strong with an increase in like-for-like rent roll in the quarter and the year to date as it continues with its programme of refurbishment and redevelopment. Insurer Catlin was firmly lower despite raising its dividend after reporting that annual profit before tax surged from $71m to $339m.

AIM/Small Cap Report

FTSE 100 - Risers GKN (GKN) 255.50p +3.90% International Consolidated Airlines Group SA (CDI) (IAG) 218.50p +3.46% Old Mutual (OML) 192.00p +3.28% Standard Chartered (STAN) 1,694.00p +2.67% HSBC Holdings (HSBA) 716.70p +2.33% Weir Group (WEIR) 2,123.00p +2.17% Sage Group (SGE) 330.60p +2.10% Burberry Group (BRBY) 1,365.00p +2.09% Barclays (BARC) 298.60p +2.09% Aggreko (AGK) 1,588.00p +1.99% FTSE 100 - Fallers Imperial Tobacco Group (IMT) 2,300.00p -2.00% Randgold Resources Ltd. (RRS) 6,000.00p -1.96% Severn Trent (SVT) 1,589.00p -1.79% Schroders (SDR) 1,974.00p -1.25% Royal Dutch Shell 'B' (RDSB) 2,183.00p -0.89% Royal Dutch Shell 'A' (RDSA) 2,127.00p -0.79% AstraZeneca (AZN) 3,000.00p -0.71% ARM Holdings (ARM) 919.00p -0.59% Rexam (REX) 457.60p -0.56% Fresnillo (FRES) 1,660.00p -0.54% FTSE 250 - Risers Bwin.party Digital Entertainment (BPTY) 135.80p +16.37% Playtech Ltd. (PTEC) 532.00p +8.64% Bumi (BUMI) 378.00p +6.51% Tullett Prebon (TLPR) 285.10p +6.10% Workspace Group (WKP) 333.60p +5.24% Computacenter (CCC) 494.00p +4.95% Dixons Retail (DXNS) 27.66p +4.77% Dunelm Group (DNLM) 813.00p +3.70% Beazley (BEZ) 205.20p +3.12% Enterprise Inns (ETI) 105.10p +3.04% FTSE 250 - Fallers F&C Asset Management (FCAM) 104.00p -4.15% Catlin Group Ltd. (CGL) 518.00p -3.81% Ted Baker (TED) 1,175.00p -1.84% Wetherspoon (J.D.) (JDW) 510.00p -1.73% Lancashire Holdings (LRE) 831.50p -1.54% Dialight (DIA) 1,101.00p -1.52% Telecity Group (TCY) 864.00p -1.48% AZ Electronic Materials SA (DI) (AZEM) 380.00p -1.40% Smith (DS) (SMDS) 229.80p -1.37% Afren (AFR) 150.10p -1.31%

Europe Market Report

FTSE 100 Euronext Dax perf CAC 40

European Markets Climbed On Chinese & U.S. Trade Data The European markets posted gains on Friday, with strength in shares of banks and miners. The markets received an early boost from some positive trade data out of China. The much narrower than expects trade deficit reported by the U.S. in the afternoon provided further support. The Bank of France predicted a modest growth for the first quarter, following a possible contraction in the previous three months. In its monthly business survey report, the bank said it expects gross domestic product to increase 0.1 percent in the first quarter of 2013. Last month, the bank estimated a 0.1 percent economic contraction for the fourth quarter of 2012. The Euro Stoxx 50 index of eurozone bluechip stocks increased by 1.12 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 1.18 percent. The DAX of Germany climbed by 0.81 percent and the CAC 40 of France advanced by 1.35 percent. The FTSE 100 of the U.K. gained 0.47 percent and the SMI of Switzerland rose by 0.80 percent. In Frankfurt, Gea increased by 1.77 percent. Deutsche Bank upgraded the stock to ''Buy'' from ''Hold.'' Utility RWE rose by 1.71 percent, despite a broker downgrade. BMW gained 2.36 percent, after the auto-maker provided its sales growth forecast for 2013. Chemicals firm Wacker Chemie rose by 1.52 percent, despite a broker downgrade. Hugo Boss fell by 2.26 percent. The clothing firm reported a significant increase in fourth-quarter profit, helped by higher revenues and good management of expenses. Truck-maker MAN reported a turnaround to profit in its fourth quarter, despite a slump in the commercial vehicles business. Looking ahead, the company expects the commercial vehicles business to decline in Europe in 2013, particularly in the first half of the year. The stock finished up by 0.63 percent. Software AG climbed by 2.32 percent. Germany's second biggest software maker has decided to buy back shares worth up to 180 million euros. In Paris, Vivendi advanced by 2.14 percent. The media giant's subsidiary Universal Music Group is selling Parlophone Label Group, a unit of EMI Recorded Music, to Warner Music Group for 487 million pounds. Credit Agricole and BNP Paribas gained 6.92 percent and 2.36 percent, respectively. Societe Generale added 2.88 percent. Car maker PSA Peugeot Citroen said its fiscal 2012 would include a hefty impairment charge of around 4 billion euros on the assets of the Automotive Division, reflecting the impact of the deterioration of the European market. The stock climbed by 1.96 percent, while peer Renault lost 1.18 percent. In London, Aggreko gained 1.99 percent. HSBC upgraded the stock to "Neutral" from "Underweight." HSBC upgraded Anglo American to ''Overweight'' from ''Neutral.'' The stock climbed by 1.83 percent. HSBC also upgraded Antofagasta to "Neutral" from "Underweight." The stock rose by 0.71 percent. Vodafone advanced by 1.19 percent, after Bank of America Merrill Lynch upgraded it to "Buy" from "Neutral." Experian advanced by 1.11 percent, after UBS upgraded the stock to "Buy" from "Neutral." Swiss Life increased by 3.71 percent in Zurich, after JP Morgan upgraded the stock to "Overweight" from "Neutral." Germany's exports rose only 0.3 percent in December from a month ago, the Federal Statistical Office said Friday. Although it reversed last month's 2.2 percent drop, the growth rate was slower than the 1.4 percent rise forecast by economists.

US Market Report

Stocks Continue To Perform Well In Mid-Day Trading While buying interest has waned from earlier in the session stocks remain mostly positive in mid-day trading on Friday. The gains on the day have offset the modest losses posted in the previous session, although the Dow continues to face resistance near the 14,000 level. In recent trading, the Dow has pulled back well off its best levels but remains up 52.85 points or 0.4 percent at 13,996.90. The tech-heavy Nasdaq is up 29.81 points or 0.9 percent at 3,194.94, while the S&P 500 is up 7.82 points or 0.5 percent at 1,517.21. Sector News health insurance stocks have shown a strong move to the upside on the day, resulting in a 2.4 percent gain by the Morgan Stanley Healthcare Payor Index. With the gain, the index has reached a new record intraday high. Molina Healthcare (MOH) has helped to lead the health insurance sector higher, surging up by 9.5 percent after reporting much better than expected fourth quarter earnings and providing upbeat guidance. Considerable strength is also visible among computer hardware stocks, as reflected by the 1.1 percent gain being posted by the NYSE Arca Computer Hardware Index. Apple (AAPL) is posting a notable gain, extending the upward move seen late in the previous session. Biotechnology, semiconductor, and healthcare provider stocks are also posting strong gains in mid-day trading, moving to the upside along with most of the major sectors. Other markets In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Friday. Australia's All Ordinaries Index advanced by 0.7 percent, while Hong Kong's Hang Seng Index edged up by 0.2 percent. However, Japan's Nikkei 225 Index bucked the uptrend and tumbled by 1.8 percent. In the bond market, treasuries have climbed well off their worst levels but continue to see modest weakness. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.3 basis points at 1.964 percent.

Broker tips

Miners, Weir, Imperial Tobacco Ahead of earnings season in the mining sector, Credit Suisse has labelled its top and worst picks among resource stocks. "Our top picks are Rio Tinto and ENRC and from the mid cap group African Minerals and London Mining." While Lonmin is downgraded from 'outperform' to 'neutral', the broker's least-preferred stocks are Anglo American, Kazakhmys and Antofagasta. UBS has hiked its target for engineering giant Weir by 15 per cent from 2,000p to 2,300p and reiterated its 'buy' rating for the stock, causing shares to rise on Friday morning. The broker highlighted results from Weir's peer group, specifically Metso and Outotec, which surprised on both orders and profits on Thursday. Investec has reduced its rating for tobacco and cigarette giant Imperial to 'hold' and cut its target from 2,580p to 2,450p, saying the first quarter was the signal to prompt the abandonment of its 'buy' case. "The Q1 felt like a signal event to us. Sales were barely ahead against a weak comp and profit is set to be lower in H1, as tough conditions in Europe and elsewhere press on IMT’s organic growth aspirations," said analyst Martin Deboo.