ADVFN III Morning Euro Markets Bulletin.

ADVFN III Morning Euro Markets Bulletin

Daily world financial news Wednesday, 28 August 2013

London Market Report

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

Stocks slip as Syrian turmoil hits risk appetite The FTSE 100 dropped firmly into the red on Wednesday morning as escalating tensions between Syria and the West spurred a reduction in risk appetite amongst investors. UN weapons inspectors are expected to return to a site in Damascus near where the suspected chemical weapons attack happened last week, leading to the deaths of well over a thousand Syrians. US Vice President Joe Biden said on Tuesday there is "no doubt" that the Syrian government used chemical weapons and it must be held accountable. White House spokesman Jay Carney meanwhile said: “There must be a response ... What form that response will take is what the President is assessing now.” Syria’s government has so far denied the use of chemical weapons and said the US military will fail if it launches an attack against the country. Syrian Foreign Minister Walid al-Muallem has been reported as saying that the government wouldn't step down and its defences would "surprise" those wanting to step in. "Things have escalated quickly over the last couple of days, with numerous officials from the US, UK and France, in particular, condemning the Syrian government for its alleged use of chemical weapons and calling for action to be taken," said Market Analyst Craig Erlam from Alpari. "This has prompted a knee-jerk reaction in the markets on expectations that this action will come in the form of a military strikes against the Syrian government." Oil producers track crude higher Oil stocks were making gains this morning as crude prices continued to climb on concerns that rising tensions in Syria will disrupt supplies from the Middle East. West Texas crude was at a two-year high early on. Tullow Oil, Shell and BP were among the best performers early on. Reduced risk appetite meanwhile was benefitting the defensive sectors such as utilities, with United Utilities, National Grid, Severn Trent and Centrica on the up. Heading the other way were the miners as investors fled for 'safer' assets. Randgold, Rio Tinto and BHP Billiton were in the red on the FTSE 100. Meggitt, the aerospace, defence and energy group, fell after unveiling plans to acquire Piezotech, a US ceramic devices producer, for $41.2m. Also lower was Chemring, the manufacturing company serving the defence markets, which saw a sharp year-on-year decline in revenue in the third quarter as it continues to feel the effects of automatic spending cuts in the States. Online gaming company 888 Holdings rose strongly after achieving record revenue in the first half, driven by the strong performance of casino and poker products. Investors gave a cool reaction to the announcement by security solutions group G4S that it would sell assets, restructure other businesses and issue new shares in an attempt to buoy its balance sheet. The company said that underlying profits were flat in the first half. A number of FTSE 350 stocks will go ex-dividend today, meaning that new investors won't have access to the companies' latest payouts. These firms include: African Barrick Gold, AZ Electronic Materials, CRH, Glencore Xstrata, Henderson Group, Legal & General, Stagecoach, St James's Place, Tullow Oil, Ultra Electronics, Vesuvius, Wood Group

FTSE 100 - Risers Tullow Oil (TLW) 1,034.00p +1.57% G4S (GFS) 248.80p +1.43% Royal Dutch Shell 'B' (RDSB) 2,189.50p +0.57% Royal Dutch Shell 'A' (RDSA) 2,104.50p +0.57% United Utilities Group (UU.) 684.00p +0.44% BP (BP.) 448.85p +0.39% Bunzl (BNZL) 1,379.00p +0.22% National Grid (NG.) 741.50p +0.20% Severn Trent (SVT) 1,711.00p +0.18% Centrica (CNA) 388.50p +0.13% FTSE 100 - Fallers Randgold Resources Ltd. (RRS) 5,170.00p -3.09% ARM Holdings (ARM) 854.00p -2.06% Legal & General Group (LGEN) 190.50p -1.85% Glencore Xstrata (GLEN) 309.20p -1.59% Rio Tinto (RIO) 2,947.00p -1.52% Wood Group (John) (WG.) 802.00p -1.35% BHP Billiton (BLT) 1,857.50p -1.35% International Consolidated Airlines Group SA (CDI) (IAG) 296.60p -1.30% Lloyds Banking Group (LLOY) 71.70p -1.28% easyJet (EZJ) 1,219.00p -1.22% FTSE 250 - Risers Bumi (BUMI) 221.20p +2.84% Playtech (PTEC) 680.00p +2.18% 888 Holdings (888) 148.00p +2.07% African Barrick Gold (ABG) 173.30p +1.76% Lancashire Holdings Limited (LRE) 741.00p +1.44% Premier Oil (PMO) 358.30p +0.84% Pennon Group (PNN) 686.50p +0.81% Berendsen (BRSN) 884.50p +0.74% PayPoint (PAY) 1,100.00p +0.73% Ocado Group (OCDO) 300.60p +0.64% FTSE 250 - Fallers Kenmare Resources (KMR) 27.75p -6.09% JPMorgan Indian Inv Trust (JII) 270.00p -5.16% Evraz (EVR) 119.20p -3.40% Berkeley Group Holdings (The) (BKG) 2,153.00p -3.19% Thomas Cook Group (TCG) 132.00p -3.01% Polymetal International (POLY) 719.50p -2.90% Henderson Group (HGG) 169.90p -2.47% Bwin party Digital Entertainment (BPTY) 125.70p -2.41% NB Global Floating Rate Income Fund Ltd GBP (NBLS) 104.60p -2.24% Genus (GNS) 1,461.00p -1.95%

UK Event Calendar

INTERIMS 888 Holdings, Antofagasta, APR Energy, Candover Investments, Chime Communications, DRS Data & Research Services, G4S, Johnston Press, JSC Federal Grid Company of Unified Energy System GDR (REG S), Kenmare Resources, Paddy Power, Phaunos Timber Fund Ltd., Polymetal International, Randall & Quilter Investment Holdings (DI) INTERIM EX-DIVIDEND DATE Acencia Debt Strategies Ltd., African Barrick Gold , AZ Electronic Materials SA (DI), BlackRock World Mining Trust, British Smaller Companies VCT 2, Capital & Counties Properties , CRH, Devro, Glanbia, Glencore Xstrata, Greencoat UK Wind, Henderson Group, Inspired Energy, Kingspan Group, Legal & General Group, Low & Bonar, LPA Group, PPHE Hotel Group Ltd, Rights & Issues Inv Trust Income Shares, Robinson, Rotork, St James's Place, Tullow Oil, Ultra Electronics Holdings, Vesuvius, Wood Group (John) QUARTERLY EX-DIVIDEND DATE Canaccord Financial Inc., Canadian General Investments Ltd., Energy XXI (Bermuda) (Di), Premier Energy & Water Trust INTERNATIONAL ECONOMIC ANNOUNCEMENTS Crude Oil Inventories (US) (15:30) M3 Money Supply (EU) (09:00) MBA Mortgage Applications (US) (12:00) Pending Homes Sales (US) (15:00) FINALS Mattioli Woods SPECIAL EX-DIVIDEND PAYMENT DATE Premier Energy & Water Trust AGMS Adams, Daejan Holdings, Development Securities, Iomart Group, Omega Diagnostics Group, Phorm Corporation Ltd (DI), Sphere Medical Holding, Talisman VCT TRADING ANNOUNCEMENTS Mattioli Woods UK ECONOMIC ANNOUNCEMENTS CBI Distributive Trends Surveys (11:00) FINAL EX-DIVIDEND DATE Bloomsbury Publishing, Carclo, Cohort, Falkland Islands Holdings, First Property Group, Fletcher King, Park Group, Stagecoach Group

Europe Market Report

FTSE 100 Euronext Dax perf CAC 40

Stocks mixed as Syrian tensions continue FTSE 100: -0.31% DAX: -0.38% CAC 40: -0.12 FTSE MIB: 0.68% IBEX 35: -0.54 Stoxx 600: 0.28% European equities were mixed as investors continued their steady exit out of risky assets on concerns over increasing tensions in the Middle East. The US said its military is ready to launch strikes in Syria after leaders in the world’s biggest economy accused the Syrian regime of using chemical weapons against civilians last Wednesday. US Vice-President Joe Biden said there is “no doubt” that the Syrian government used chemical weapons in an attack which killed about 300 people. The Syrian government has firmly denied the claims and said it would defend itself against any military action from outsiders. The US said it will release its own intelligence report into the incident at Ghouta, a suburb of the capital. Obama is believed to have made at least 88 calls to foreign leaders to rally up support as the government is reportedly trying to avoid consulting the United Nations at the risk of Russia vetoing any military intervention. German consumer confidence eases German consumer confidence eased slightly from a six year high heading into September, according to data Wednesday. The GfK Consumer Confidence Survey’s forward-looking sentiment indicator fell to 6.9 going in to September from 7 in the previous month. It was the highest level since before the global financial crisis and undercut forecasts for the reading to hold steady. In the US, a report at on pending sales of previously owned homes is expected to show little change last month after declining 0.4% in June, according to consensus data. Accor, Bouygues Accor declined after reporting first-half profit that fell short of analysts’ expectations. Bouygues advanced as the French contractor reported a 10% increase in second-quarter profit which exceeded forecasts. Meggitt retreated as the British aerospace and defence manufacturer agreed to pay $25m to resolve hundreds of possible export control violations the company uncovered in a review of operations dating back to the mid-1990s. Vestas Wind Systems rallied as Stoxx Ltd. said the company is among the 12 stocks that will be added to the Stoxx 600 as of September 23rd. Brent crude surges Brent crude futures were up $1.235 to $115.790 per barrel on the ICE as tensions in Syria mounted. The euro/dollar fell 0.09% to the 1.3381 dollar mark.

US Market Report

Dow hits two-month low as Syria fears hit markets Dow Jones: -1.14% Nasdaq: -2.15% S&P 500: -1.62% Concerns over an impending US military intervention in Syria hammered stocks on Wall Street on Tuesday, sending the Dow Jones Industrial Average to a two-month low. Reduced risk appetite saw investors flee to supposedly 'safer' assets such as government bonds and gold, both of which gained strongly. Oil prices meanwhile hit a six-month high on concerns that the turmoil could affect Middle East supplies. Investors largely shrugged off a survey of US consumer confidence which edged higher this month, surprising analysts who had expected a slight decline. The Conference Board's index rose to 81.5 in August from an upwardly revised 81.0 in July consensus estimate: 79.0, driven by an increase in the economic expectations index which was boosted by improved labour-market sentiment. Heightened tensions in Syria grabbed the headlines again on Tuesday, one day after US Secretary of State John Kerry said it would be held accountable for the "moral obscenity" of an alleged chemical weapons attack that has killed well over a thousand people. “By any standard it is inexcusable,” he said, sparking speculation of a potential US involvement in the Syrian crisis. “There must be a response,” said White House spokesman Jay Carney. “What form that response will take is what the President is assessing now.” Defense Secretary Chuck Hagel said that the US has "assets in place" and forces are "ready to go" if intervention is decided. Meanwhile, UK Prime Minister David Cameron recalled parliament to vote on possible response to last week's attack. Syrian Foreign Minister Walid al-Muallem responded by saying that the government - which has not yet claimed responsibility - wouldn't step down and its defences would "surprise" those wanting to step in. Cyclical sectors such as banking were out of favour, with Wells Fargo, Citigroup, Bank of America and JPMorgan Chase all registering losses. Retailer Best Buy fell after founder and major shareholder Richard Schulze revealed his intention to sell stock, though the amount was unknown. Sector peer JC Penney was also in the red after Pershing Square Capital Management sold a $504m stake in the company. Shares in drug maker Acura Pharmaceuticals plummeted after the company said it was delaying the US Food and Drug Administration application for its Aversion H&A medication. S&P 500 - Risers Sears Holdings Corp. (SHLD) $40.58 +3.15% Goodyear Tire & Rubber Co. (GT) $19.01 +1.98% Crown Castle International (CCI) $69.95 +1.39% Ventas Inc. (VTR) $62.86 +1.37% HCP Inc. (HCP) $40.92 +0.94% Comcast Corp. (CMCSA) $41.80 +0.87% DIRECTV (DTV) $57.98 +0.85% Health Care REIT Inc. (HCN) $61.51 +0.72% NextEra Energy Inc. (NEE) $81.09 +0.66% FMC Corp. (FMC) $66.96 +0.59% S&P 500 - Fallers GameStop Corp. (GME) $49.37 -5.75% Advanced Micro Devices Inc. (AMD) $3.39 -5.31% Western Digital Corp. (WDC) $61.44 -5.19% Boston Scientific Corp. (BSX) $10.70 -5.14% First Solar Inc. (FSLR) $36.84 -5.00% Cliffs Natural Resources Inc. (CLF) $21.38 -4.85% Abercrombie & Fitch Co. (ANF) $35.98 -4.76% Sandisk Corp. (SNDK) $54.03 -4.61% Zions Bancorporation (ZION) $27.92 -4.42% Micron Technology Inc. (MU) $13.18 -4.36% Dow Jones I.A - Risers Coca-Cola Co. (KO) $38.15 +0.08% Verizon Communications Inc. (VZ) $46.95 +0.02% Dow Jones I.A - Fallers Bank of America Corp. (BAC) $14.11 -2.62% Microsoft Corp. (MSFT) $33.26 -2.61% JP Morgan Chase & Co. (JPM) $50.60 -2.32% American Express Co. (AXP) $71.91 -2.31% United Technologies Corp. (UTX) $99.94 -2.31% Boeing Co. (BA) $103.21 -2.20% General Electric Co. (GE) $23.18 -1.82% Alcoa Inc. (AA) $7.91 -1.80% Home Depot Inc. (HD) $74.12 -1.74% Johnson & Johnson (JNJ) $86.17 -1.55% Nasdaq 100 - Risers Sears Holdings Corp. (SHLD) $40.58 +3.15% Tesla Motors Inc (TSLA) $167.01 +1.70% Sba Communications Corp. (SBAC) $74.30 +1.05% Comcast Corp. (CMCSA) $41.80 +0.87% DIRECTV (DTV) $57.98 +0.85% Equinix Inc. (EQIX) $170.23 +0.45% Nasdaq 100 - Fallers Western Digital Corp. (WDC) $61.44 -5.19% Sandisk Corp. (SNDK) $54.03 -4.61% Micron Technology Inc. (MU) $13.18 -4.36% Facebook Inc. (FB) $39.64 -4.11% Amgen Inc. (AMGN) $109.13 -4.06% Seagate Technology Plc (STX) $38.51 -3.96% Vertex Pharmaceuticals Inc. (VRTX) $75.00 -3.78% F5 Networks Inc. (FFIV) $82.84 -3.52% KLA-Tencor Corp. (KLAC) $54.67 -3.07% Celgene Corp. (CELG) $136.96 -2.98%

Wednesday newspaper round-up

Syria, Nationwide, HSBC Britain cannot stand idly by in the face of the morally indefensible use of chemical weapons, David Cameron said yesterday, as he laid out the case for a missile strike against Syria. The White House is preparing intelligence material, including intercepted communications, which it says will prove that the Assad regime was responsible for last Wednesday’s attack, The Times says. The Bank of England has warned Nationwide it is forbidden from cutting lending to small firms to meet tougher safety rules. Threadneedle Street last night reacted angrily to reports that Britain’s biggest building society has delayed plans to start lending to small and medium-sized businesses, The Daily Mail writes. Tax breaks for the oil industry introduced by Chancellor George Osborne should lead to a “substantial enhancement” of output from the North Sea, according to Aberdeen University economist Alex Kemp, according to The Scotsman. As a shake-up of the accountancy market nears its conclusion, HSBC, Barclays, Royal Bank of Scotland and Standard Chartered which between them pay more than £150m in fees annually to the bean counters who sign off their books argue that the measure would be costly, disruptive and potentially harmful to competition and the quality of oversight, according to The Times. Angela Merkel has said Greece should never have been allowed into the euro and put the blame on former chancellor Gerhard Schroeder. “That a, unified euro area, is such a treasure, such a boon, that we can’t place it in doubt,” she told her supporters. “That’s why the euro is more than a currency. For this reason we’ve shown solidarity, but solidarity always linked to responsibility for reforms in those countries that experience our solidarity,” she added, The Daily Telegraph reports. Regulator Ofgem promises the biggest shake-up of the energy retail market since competition began. All UK households will receive simplified gas and electricity tariffs by the end of the year and must be told the cheapest deal available from their supplier by the spring, industry regulator Ofgem said on Tuesday, The Guardian explains