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Aug 22, 2013

DealBook P.M. Edition August 22, 2013: Malfunction Halts Nasdaq Trading.



Thursday, August 22, 2013
TOP STORY
Malfunction Halts Nasdaq Trading A problem at the Nasdaq stock market halted trading in all Nasdaq-listed stocks on Thursday. The exchange said it planned to reopen shortly.
The Nasdaq Is Down? It's Time to Tweet. When a technical problem caused the Nasdaq to halt trading in Nasdaq-listed stocks, Wall Street watchers once again turned to social media sites to share their insight.

DEALBOOK HIGHLIGHTS
British Credit Card Customers to Be Reimbursed Some of the largest banks and credit card companies in Britain will have to pay a total of up to $2 billion to customers who were sold inappropriate financial products, a British regulator said on Thursday.
Buzz Tracker
Goldman Banker Arrested on Rape Charges in East Hampton Jason Lee, a 37-year-old managing director in the bank's equity capital markets group, was arraigned on Wednesday and posted $20,000 bail, Joseph Goldstein and Jim Rutenberg reported for The New York Times.
LOOKING AHEAD
Economic Data Data to be released on Friday includes the Commerce Department's new home sales for July.
Overseas On Friday, Britain releases its second estimate of growth in its gross domestic product in the second quarter, and the European Commission reports on euro zone consumer confidence.
Quotation of the Day
"There is no transparency for investors at this point."
David Warhoftig, managing director of Highside Capital Management, on a technology problem at the Nasdaq stock exchange.

Wall Street at Close Report by MarketWatch August 22, 2013: U.S. stocks close higher as Nasdaq restarts trade



By Wallace Witkowski and Kate Gibson, MarketWatch

FactSet
The Nasdaq Composite ended 1% higher Thursday after a technical problem halted trading for more than three hours. 
 
SAN FRANCISCO (MarketWatch)U.S. stocks closed higher Thursday, getting a slight boost after Nasdaq-listed stocks resumed trading from a more than three-hour halt due to technical trouble. 

Snapping a six-session bout of losses, its longest since July 2012, the Dow Jones Industrial Average DJIA +0.44%  closed higher, rising 66.19 points, or 0.4%, to 14,963.74, a few points higher than it had been before the Nasdaq resumed trading. 

Energy and industrials paced sector gains on the S&P 500 index SPX +0.86% , which closed up 14.16 points, or 0.9%, at 1,656.96. 


Just after midday, the Nasdaq OMX Group NDAQ -3.42%  said it had halted trading in all Nasdaq-listed securities due to technical issues. The New York Stock Exchange, BATS and DirectEdge exchanges also said they were halting trading in Nasdaq-listed shares. 

With trading re-opening at around 3:25 p.m. Eastern, the Nasdaq Composite COMP +1.08%  closed up 38.92 points, or 1.1%, at 3,638.71. Before grinding to a halt, the index had been up 31.38 points. 

As the Nasdaq started trading again, NYSE Euronext said it was having “sporadic difficulties” processing outbound quotes to Nasdaq’s data feed, and would cancel trades made during the halt.

For every share declining, roughly five gained on the New York Stock Exchange, where 573 million shares traded by the close. Composite volume was around 2.5 billion, hampered by low volume on all exchanges due to the Nasdaq-listed-stock halt. For total composite volume, it was the lowest full-day volume of the year. 

The shutdown was very risky for market makers as they were “literally trading in the dark,” said Benedict Willis, a floor trader for Albert Fried & Co, in emailed comments. 

“The small investor should be using limits on their orders,” Willis said. 



The Next 24: Jackson Hole, Pandora
On Friday, markets will take in new estimates on GDP growth for the U.K. and Germany, as well as a new reading on European consumer confidence. The Fed's Jackson Hole conference will also have traders' attention. Late Thursday, Pandora was diving after hours as the streaming-music company's guidance disappointed investors. 

The Nasdaq glitch was reminiscent of the 2010 Flash Crash and also two incidents — one in 1987 and 1994 — when squirrels on power lines shut down the power grid the Nasdaq was using. The 2010 event and the problems surrounding the Facebook IPO debut have illustrated the pitfalls of investing in a complex, technology-dominated environment-- and one reason retail investors stayed on the sidelines for much of the past bull market. 

Stocks got off to a good start earlier in the day as economic data cast a favorable light on growth in the U.S. and overseas. 

“The economy is not at this point looking like it’s going into a recession. It is certainly not booming, and that is the quandary the Fed has and why the taper is such a big deal,” said Paul Nolte, managing director at Dearborn Partners in Chicago, referring to signals from the Federal Reserve that it would curb its $85 billion in monthly bond purchases before the end of the year. 

“The question now being asked is how much and when, and the Fed has left that very open,” he added.


The dollar DXY +0.12%  gained against the currencies of major U.S. trading partners, including the yen USDJPY +0.0031% . The yield on the 10-year Treasury note 10_YEAR +0.03% used in determining mortgage rates and other consumer loans rose less than 1 basis point to 2.904%. 

On the New York Mercantile Exchange, gold futures GCZ3 +0.42%  rose 70 cents, or less than 0.1%, to settle at $1,370.80 an ounce, while crude-oil futures CLV3 +0.17%  settled up $1.18, or 1.1%, at $105.03 a barrel. 

Hewlett-Packard Co. HPQ -12.45%  closed down 12% after the Dow component and personal-computer maker’s quarterly profit outlook disappointed

GameStop Corp. GME +9.01%  finished up 9% after the videogame retailer raised its 2013 profit outlook. The stock was the biggest S&P 500 gainer.
Abercrombie & Fitch Co. ANF -17.67%  sank nearly 18%, making it the worst S&P 500 performer, after the retailer reported second-quarter earnings beneath market expectations.

Data dependent

Applications for jobless benefits fell to a more-than five-year low during the past month, illustrating continuing improvement in the U.S. labor market, the government reported. 

Separate data had U.S. house prices climbing 7.7% year-over-year in June, and up 0.7% from May, the Federal Housing Finance Agency said. 

“The housing data was good; weekly jobless claims continue to be good, so I would continue to expect that we’ll see payroll growth, the monthly numbers in the range we’ve been seeing -- it’s not fabulous but it’s growth,” said Nolte of the nonfarm payrolls report due on Sept. 6, the final such report before the Federal Open Market Committee starts a two-day session Sept. 17. 

The Conference Board’s index of economic indicators rose 0.6% in July to 96.0, slightly above estimates. 

Economic reports from overseas had Germany pacing gains in manufacturing and services in the euro zone, and a measure of factory productivity expanded in China.
 
Wallace Witkowski is a MarketWatch news editor in San Francisco. Follow him on Twitter @wmwitkowski. Kate Gibson is a reporter for MarketWatch, based in New York.

Wall Street at Close Report by CNBC August 22, 2013: Stocks close higher after 3-hour Nasdaq trading halt


Stocks close higher after 3-hour Nasdaq trading halt

Stocks closed higher on Thursday with the major averages holding onto their gains after the Nasdaq reopened from a more than three hour trading halt.
A technical problem led to a halt of all Nasdaq trading shortly after midday. Shares of Nasdaq OMX were sharply lower following the halt.

Markets rose on encouraging manufacturing data out of the U.S., China and euro zone that pointed to global growth. But uncertainty persists as to when the Federal Reserve may begin to reduce its monthly bond purchases.
Name Price Change %Change
DJIA Dow Jones Industrial Average 14963.74
66.19 0.44%
S&P 500 S&P 500 Index 1656.96
14.16 0.86%
NASDAQ Nasdaq Composite Index 3638.71
38.92 1.08%

The Dow Jones Industrial Average rose, snapping a six session losing streak, led by gains Microsoft and Alcoa. Hewlett-Packard was a drag, down sharply after its earnings report on Wednesday. Despite today's fall, HPQ is still the best Dow stock this year, with a gain of 55 percent.

The S&P 500 and the Nasdaq also closed higher. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 15.

Among S&P sectors, energy and industrials paced the advance, while tech lagged.
Billionaire investor Carl Icahn tweeted on Thursday that he plans to meet with Apple's Tim Cook in September to discuss details of a possible stock buyback. What will be discussed is the magnitude of the shares repurchased, Icahn said.


(Read more: Icahn to meet with Apple CEO to discuss buyback)

Trader: Shutdown causing liquidity concerns on Nasdaq stocks
CNBC's Kate Kelly provides insight on traders' concern following the halt of Nasdaq trading. Paul Hickey, Bespoke; and CNBC contributor Herb Greenberg, weigh in on Nasdaq's handling of alerts. 3:52 PM is the updated time for trade resumption. 
  Global data encouraging, Fed fears linger   Economic data is what drove markets on Thursday. The latest jobless claims report showed a rise in initial claims to 336,000, a bit higher than the 330,000 economists were looking for. July leading indicators were better than expected and Markit's "flash" U.S. manufacturing purchasing managers index posted its best showing since March. "I do think the economy is in better shape than most people think, and that's why I think this setback over the last few days is a buying opportunity," Jim McCaughan of Principal Global Investors said. In global economic data, HSBC's preliminary reading of Chinese PMI for August crossed the key 50-level for the first time in four months thanks to a rebound in new orders, pointing to potential stabilization. "China's manufacturing growth has started to stabilize on the back of modest improvements in new business and output. This is mainly driven by the initial filtering through of recent fine-tuning measures and companies' restocking activities," said Qu Hongbin, the co-head of Asian economic research at HSBC. European markets closed higher after Germany's PMI for August climbed in July. Broader euro zone PMI data also beat expectations. "They're certainly good numbers, and we've been seeing this for the last four or five months in Europe," Richard Jerram, chief economist at the Bank of Singapore, told CNBC. "It does seem that as the headwinds from fiscal tightening fade, then the economies are starting to lift." (Read more: Euro zone flash PMI at highest level since June 2011) There remains ongoing uncertainty as to when the Fed will start tapering its massive stimulus program, however. Minutes from the central bank's last policy meeting, released on Wednesday, showed the Fed is preparing to start tapering, but provided little indication as to when it might do so. UBS economist Maury Harris told CNBC, "The Fed is just apparently unable to send any kind of consistent message about what they're up to." Harris expects tapering to start in the fourth quarter, but it could be a "tiny taper" and "hardly enough to make any kind of difference."  The annual Fed symposium will start in Jackson Hole, Wyoming, on Thursday evening. Fed Chairman Ben Bernanke will break with tradition and not attend this year,and there will be plenty of speculation at the meeting as to who will replace him in January. 
Retailers in focus   Retailers struggled following a weak earnings report from teen retailer Abercrombie and Fitch, which badly missed Wall Street expectations on both earnings and revenue. Shares tumbled nearly 20 percent. Sears Holdings also got slammed after reporting a wider-than-expected loss of $1.46 a share, sending its stock down 8 percent. GameStop shares surged after its earnings report. Elsewhere, J.C. Penney announced a short-term stockholder rights plan. By CNBC's Justin Menza. Follow him on Twitter @JustinMenza.

BIV Today's Business News August 22, 2013: Canadian expansion a drag on Target earnings




Retail and Manufacturing

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ADVFN III Evening Euro Markets Bulletin August 22, 2013.


ADVFN III Evening Euro Markets Bulletin
Daily world financial news Thursday, 22 August 2013

London Market Report
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Stocks jump on improvement in global data
London’s FTSE 100 jumped on Thursday as investors temporarily shrugged off an underwhelming set of minutes from the Federal Reserve and instead focused on improving data from across the world which brightened the global economic outlook.

The FTSE 100 ended the day at 6,446.87, up 56.03 points on the day after closing at a six-week low of 6,390.84 on Wednesday. The last time the index closed lower than that was July 5th when it finished at 6,375.52.

Data shows improving picture

Markets started out strongly this morning after the Chinese manufacturing purchasing managers’ index (PMI) improved from 47.7 to 50.1 in August, well ahead of the 48.2 consensus forecast - the 50-point mark separates expansion from contraction.

The preliminary Eurozone composite PMI (which measures activity in both manufacturing and services sectors) rose from 50.5 to 51.7 in August, the largest expansion in the last 26 months. Analysts were expecting a smaller riser to 50.9.

The 'flash' US manufacturing PMI also rose this month from 53.7 to 53.9 as growth picked up, though this slightly missed the consensus forecast of 54.2.

FOMC minutes underwhelm

Minutes from the Federal Open Market Committee's July 30-31st meeting failed to shed any more light on a timeframe for the central bank's imminent tapering of quantitative easing (QE). Policymakers said they were "broadly comfortable" with the plan to taper stimulus by the end of the year, as they have said in the past, with the labour market having "improved substantially" and economic growth expected to "strengthen further" in the second half.

Stocks have been choppy over recent weeks in anticipation of the minutes as expectations increased that the Fed would begin to withdraw stimulus in September. While the outcome of this impending decision is still uncertain, these expectations have (arguably) now been priced into markets.

“Investors are coming to terms with the likelihood that the market might already be moving on from the tapering bonanza and is concerned more with how money will move once the asset purchases slow,” said David White, Financial Trader from Spreadex.

“Equities have today demonstrated that the appetite for risk is much improved now compared with the previous two times markets were faced with an ending, something likely as a result of improved underlying conditions. Bottom line, investors seem to be happier in the market than out.”

FTSE 100: IMI jumps on upbeat outlook

IMI’s shares rallied after the engineering company forecast an improvement in trading for the second half as it takes on higher-margin contracts at its Severe Service business. Revenues were flat at £1.09bn in the first half and while pre-tax profit rose 1% to £170.1m.

Plumbers merchant Wolseley was making gains after UBS upgraded its rating for the stock from 'neutral' to 'buy', saying it is optimistic about growth in the US after positive readacross from the company's peers.

Mining stocks were broadly higher after the better-than-expected manufacturing data from top metals user China. Rising metals prices today were also doing their bit to lift equities.

Vedanta Resources rebounded following a slump on Wednesday after reports four Indian tribal councils voted against the company’s plan to mine bauxite in eastern India's Niyamgiri Hills. Glencore Xstrata was performing well as the miner continues to recover after disappointing the market with its first-half report earlier this week.

Sugar and sweeteners producer Tate & Lyle slumped on the back of concerns over the recent falls in sugar prices due to the weakness in emerging-market currencies.

FTSE 250: Hochschild Mining rebounds strongly as brokers lift targets

Precious metals producer Hochschild Mining was rebounding strongly after falling sharply the day before as it suspended its interim dividend. Nevertheless, Westhouse Securities, JPMorgan Cazenove and RBC Capital Markets all upgraded their target prices for the stock today with the latter citing the company’s cost savings programme which should have a positive impact going into the second half.

Newsagent chain WH Smith was on shopping lists after saying it expects full-year results to be in line with market expectations as it continues focus on tight cost control and improving margins.

Carillion, the building and support services firm, was the worst performer of the day despite reporting a 13% increase in pre-tax profits as revenues fell 9% in the first half. The decline was mainly due to the planned rescaling of the UK construction business.

Premier Oil was also a heavy faller after record half-year financials still came up short of estimates. The company said that its full-year production target of 63,000 barrels of oil equivalent per day depends on the performance of its Huntington field in the second half.


FTSE 100 - Risers
IMI (IMI) 1,491.00p +5.82%
Fresnillo (FRES) 1,215.00p +4.38%
Wolseley (WOS) 3,330.00p +4.26%
RSA Insurance Group (RSA) 123.60p +3.00%
Glencore Xstrata (GLEN) 313.85p +2.99%
Vedanta Resources (VED) 1,194.00p +2.93%
Royal Bank of Scotland Group (RBS) 343.00p +2.66%
International Consolidated Airlines Group SA (CDI) (IAG) 311.80p +2.60%
GKN (GKN) 345.30p +2.52%
Serco Group (SRP) 621.50p +2.22%

FTSE 100 - Fallers
Experian (EXPN) 1,169.00p -1.18%
Eurasian Natural Resources Corp. (ENRC) 225.20p -0.84%
Burberry Group (BRBY) 1,574.00p -0.76%
Hargreaves Lansdown (HL.) 991.50p -0.50%
William Hill (WMH) 430.00p -0.46%
Prudential (PRU) 1,121.00p -0.36%
Croda International (CRDA) 2,567.00p -0.35%
National Grid (NG.) 737.50p -0.34%
Old Mutual (OML) 187.10p -0.32%
Tate & Lyle (TATE) 812.00p -0.25%

FTSE 250 - Risers
Diploma (DPLM) 636.50p +6.08%
Hochschild Mining (HOC) 237.80p +5.92%
Ferrexpo (FXPO) 185.20p +5.05%
Cable & Wireless Communications (CWC) 41.46p +4.72%
WH Smith (SMWH) 850.00p +4.55%
Ashmore Group (ASHM) 340.00p +4.04%
Man Group (EMG) 84.70p +3.93%
Home Retail Group (HOME) 150.30p +3.58%
IP Group (IPO) 138.00p +3.45%
Smith (DS) (SMDS) 260.00p +3.30%

FTSE 250 - Fallers
Premier Oil (PMO) 346.50p -2.94%
Carillion (CLLN) 289.80p -2.52%
NMC Health (NMC) 350.00p -2.51%
Ultra Electronics Holdings (ULE) 1,892.00p -2.42%
Rathbone Brothers (RAT) 1,585.00p -1.55%
Phoenix Group Holdings (DI) (PHNX) 735.00p -1.34%
Synergy Health (SYR) 1,110.00p -1.25%
Brewin Dolphin Holdings (BRW) 268.40p -1.18%
Beazley (BEZ) 206.20p -1.15%
Menzies(John) (MNZS) 737.00p -1.14%

Europe Market Report
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Stocks higher after upbeat data in Eurozone, US
FTSE 100: 0.69%
DAX: 1.35%
CAC 40: 1.10%
FTSE MIB: 2.56%
IBEX 35: 1.89%
Stoxx 600: 0.97%

European stocks ended Thursday on a higher note after the Eurozone’s purchasing managers’ index for manufacturing and services showed expansion in the industries in August.

The Markit composite PMI for the Eurozone rose to 51.7 points from 50.5 in July, the fastest pace in two years.

Services jumped to 51 this month from 49.8 last month while manufacturing grew to 51 from 49.8.

A reading above 50 signals expansion.

Growth was led by German which rose 53.4 in August from 52.1 in July, driven by manufacturing expansion.

However, France's PMI contracted, falling to 47.9 from 49.1 due primarily to a slump in services.

“A big question mark still hangs over France's ability to return to sustained growth,” said Chris Williamson, Chief Economist at Markit. "Although the French PMI is well above the lows seen earlier in the year.”

Nevertheless, ETX Capital Market Strategist, Ishaq Siddiqi, pointed out that the Eurozone data should come as good news to the European Central Bank’s President Mario Draghi and its members.

“Big sigh of relief for Draghi and Co who now have an even greater excuse to hold back from adjusting monetary policies as growth appears to be on board,” he said.

“ECB forecasted an improvement in the euro zone economy by the latter half of 2013 so today’s figures are fulfilling policymakers’ expectations in Frankfurt and Brussels. On top of that, calm in euro-area peripherals with little fresh noises on the political and fiscal front add to the current market optimism that worse of the crisis is over in the Eurozone.”

US data signals further recovery

The number of US jobless claims in the month ended August 17th dropped to 330,500 a week on average, the least since November 2007, according to a Labor Department report.

Compared with a week earlier, claims rose by 13,000 to 336,000, in line with the median forecast of economists surveyed by Bloomberg.

The prior week's figure was revised up by 3,000 to 323,000, a five-year low.

Separately, Markit said US manufacturing activity hit a five-month high in August as hiring picked up and new orders increased at their fastest pace since January.
The manufacturing PMI grew to 53.9 from 53.7 in July.

Another report from The Conference Board, showed its Leading Economic Index for the US rose 0.6% in July to 96.0 following no change in June, and a 0.3% increase in May. It beat economists’ forecasts for a 0.5% increase.

The raft of upbeat data comes as the Federal Reserve weighs up whether to start scaling back its $85bn per month in bond purchases.

Minutes of the Federal Open Market Committee's meeting last month showed members were broadly comfortable with Chairman Ben Bernanke’s plan to begin cutting stimulus this year as long as the economy continues to improve.

Several participants said tapering may be needed soon as the FOMC indicated that it expects economic growth will continue to improve in the second half.

Economists expect the Fed will begin trimming quantitative easing in September at the central bank’s next policy meeting.

IMI, Wolseley

Shares in IMI gained after the engineering company reported an increase in first-half profit on bigger margins at its severe service business.

Wolseley jumped after UBS AG raised its recommendation on the world’s largest distributor of plumbing and heating products to ‘buy’ from ‘neutral’, citing growth in the US.

Wienerberger AG slumped after UBS AG lowered its recommendation on the shares to ‘neutral’ from ‘buy’.

Royal Ahold advanced after the Dutch supermarket owner reported second-quarter underlying operating income that exceeded analysts’ expectations.

Premier Oil declined after the energy explorer reported first-half net income which missed analysts’ expectations.

Other asset classes mixed

The euro/dollar fell 0.07% to the 1.3346 dollar mark.

Brent crude futures recovered from a morning slump, rising $0.055 to $109.870 per barrel on the ICE.

US Market Report
Stocks rise as jobless claims fall to a five-year low
US stocks edged higher as data in the world’s largest economy showed jobless claims fell to a five-year low over the past month.

The number of claims in the month ended August 17th dropped to 330,500 a week on average, the least since November 2007, according to a Labor Department report.

Compared with a week earlier, claims rose by 13,000 to 336,000, in line with the median forecast of economists surveyed by Bloomberg.

The prior week's figure was revised up by 3,000 to 323,000, a five-year low.

The report comes as the Federal Reserve weighs up whether to start scaling back its $85bn per month in bond purchases.

Minutes of the Federal Open Market Committee's meeting last month showed members were broadly Chairman Ben Bernanke’s plan to begin tapering stimulus this year as long as the economy continues to improve.

Several participants said tapering may be needed soon as the FOMC indicated that it expects economic growth will continue to improve in the second half.

“While it's far from a certainty, the minutes from the FOMC meeting back in late July appear to support our view that the Fed will begin to slow its monthly asset purchases at the next meeting in mid-September,” according to Paul Ashworth, Chief US Economist at Capital Economics.

Ashworth suspects that officials may begin with an initial reduction of $10bn to $75bn.

President of the Federal Reserve bank of Boston, Eric Rosengren, said any tapering should be "limited” in an interview with The Wall Street Journal after the release of the minutes on Wednesday.

He said he was still forming a judgment about whether the economy was improving as expected. "This is a good time to be patient and very watchful," Rosengren said.

On the company front, shares of Hewlett Packard plunged following the release of its latest quarterly results after last night's close.

It came alongside poor results out from the likes of Stage Stores, Hormel Foods, Sears and the iconic fashion-retailer Abercrombie&Fitch.

Wells Fargo gained following reports it would lay-off 2,300 people in its mortgage production unit.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.37% in July from 4.07% in June, and is the highest since July 2011 when it was 4.55%; the rate was 3.55% in July 2012.

Acting as a backdrop, of the 482 companies in the S&P 500 that have reported quarterly earnings this period, 71% surpassed profit estimates, Bloomberg data shows. Company earnings are one of the relatively few bright spots although some analysts believe it will be a few months yet before they may translate into higher equity prices.

Conference Board index rises

The Conference Board’s Leading Economic Index for the US rose 0.6% in July to 96.0 following no change in June, and a 0.3% increase in May.

It beat economists’ forecasts for a 0.5% increase.

Ataman Ozyildirim, Economist at The Conference Board, said: "Following moderate growth in the last few months, the US LEI picked up in July, with widespread gains among its components. The pace of the LEI’s growth over the last six months has nearly doubled, pointing to a gradually strengthening expansion through the end of the year. In July, average workweek in manufacturing was the weakest component".

Other asset classes slide

10 year US Treasury yields were down 0.02 basis points to the 2.88% mark.

Front month West Texas crude futures fell $0.298 to $104.160 per barrel on the ICE.

Broker Tips
Aggreko: RBC Capital reduces target from 1850p to 1680p, while its neutral rating remains unchanged.

Aviva: JP Morgan raises target from 393p to 436p and retains an overweight rating.

BHP Billiton: Canaccord Genuity takes target from 1950p to 2050p maintaining a hold recommendation.

Cairn Energy: RBC Capital moves target from 440p to 450p and reiterates its outperform rating.

Cropper (James): Westhouse Securities ups target from 300p to 350p, while downgrading to add.

Faroe Petroleum: Liberum Capital lowers target from 188p to 183p, while leaving its buy recommendation unchanged.

Ferrexpo: Cantor Fitzgerald reduces target from 373p to 290p, but stays with its buy recommendation.

Glencore Xstrata: JP Morgan cuts target from 410p to 390p retaining its overweight rating.

Hikma Pharmaceuticals: Jefferies ups target from 1200p to 1250p and keeps a buy recommendation.

Hochschild Mining: Westhouse Securities increases target from 150p to 200p and reiterates a neutral rating. JP Morgan moves target from 75p to 80p, while keeping an underweight rating. Citi shifts target from 133p to 132p and maintains its sell recommendation. RBC Capital ups target from 220p to 260p and stays with its neutral rating.

IMI: Investec places both its target prev.: 1350p and its hold recommendation under review.

Intertek Group: Credit Suisse reduces target from 3850p to 3600p, while retaining an outperform rating.
IP Group: Numis lowers target from 129p to 124p, while its hold recommendation remains unchanged.

John Wood Group: JP Morgan cuts target from 963p to 951p and stays with its neutral rating. Liberum Capital reduces target from 892p to 874p.

Legal & General Group: Morgan Stanley moves target from 184p to 192p and maintains an equal-weight rating.

Lloyds Banking Group: Jefferies shifts target from 65p to 69p reiterating a hold recommendation.

Sportech: Investec lowers target from 110p to 105p and leaves its buy recommendation unaltered.

Stagecoach Group: Deutsche Bank raises target from 330p to 350p staying with its buy recommendation.

Summit Corporation: N+1 Singer shifts target from 8.80p to 10.70p keeping its buy recommendation.

Vitec Group: Investec increases target from 740 to 810p and retains a buy recommendation.

Wolseley: UBS upgrades from neutral to buy with a target of 3500p.

The Telegraph Front Page PM - Finance: August 22, 2013

Thursday, August 22, 2013


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European Markets at Close Report by MarketWatch August 22, 2013: European stocks rally after upbeat PMIs.

By Sara Sjolin, MarketWatch 
 
LONDON (MarketWatch) European stock markets posted broad-based gains on Thursday, breaking a three-day losing streak, after data showed a pickup in manufacturing activity in both the euro zone and China. 

The Stoxx Europe 600 index XX:SXXP +0.98%  rallied 1% to close at 303.55, marking the best one-day percentage performance in three weeks. 


Goldman not only firm facing erroneous trade losses
Goldman Sachs isn't the only trading firm facing potential losses after the bank on Tuesday flooded the U.S. stock-options market with erroneous orders. Jacob Bunge reports on The News Hub. Photo: AP. 


On Wednesday, the index closed at the lowest level since late July, as investors increasingly worried that the U.S. Federal Reserve would scale back its asset purchases as soon as September Minutes from the Fed’s latest meeting, released later the same day after the European market close, provided few hints in terms of a timeline for the tapering process.
“There’s still an element of investors’ digesting the minutes from the Fed yesterday. Added to that, we had some positive economic data from China and Europe, which have added to some positive sentiment,” said Keith Bowman, equity analyst at Hargreaves Lansdown.
“It’s difficult to say if this rally will continue. Investors are still trying to make sense of when we’ll see tapering and what it will mean for the stock markets going forward. We’re also seeing that play into emerging markets because of fears it would have some impact there,” he added.
Among notable movers in the pan-European index, shares of Royal Ahold NV NL:AH +5.20% jumped 5.2% after the Dutch supermarket chain reported a 3% rise in second-quarter sales at constant exchange rates.
Shares of IMI PLC UK:IMI +5.82%  climbed 5.8% after the engineering group reported an 8% rise in first-half profit and raised dividends 8%.  
Banks were also higher, with shares of Commerzbank AG DE:CBK +5.91%  5.7% higher in Frankfurt, UniCredit SpA IT:UCG +3.67%  up 3.7% in Milan and HSBC Holdings UK:HSBA +1.54%   HBC +1.27%   HK:5 0.00%  rising 1.5% in London.

More good news from Europe

More broadly, the pan-European index was boosted by encouraging macroeconomic data from the euro zone, which showed business activity in the region expanded at the fastest pace in more than two years in August. The Markit preliminary composite purchasing managers’ index rose to a 26-month high of 51.7, up from 50.5 in July. A level above 50 indicates expansion.
“So far, the third quarter is shaping up to be the best that the euro area has seen in terms of business growth since the spring of 2011. The economic picture from the surveys is therefore coming into line with policy makers’ expectations of a modest, yet still fragile, return to growth,” said Chris Williamson, chief economist at Markit, in the data release.
On a country-specific basis, data showed Germany’s composite PMI rose to a seven-month high, driven by the fastest rise in manufacturing production for over two years. The readings in France were more mixed, with the composite PMI dropping to a two-month low of 47.9, while the manufacturing reading remained at 49.7.
Germany’s DAX 30 index DX:DAX +1.36%  jumped 1.4% to 8,397.89, while France’s CAC 40 index FR:PX1 +1.10%  gained 1.1% to 4,059.12.
Investors also welcomed upbeat data from China. The flash reading of the country’s manufacturing PMI, compiled by HSBC and Markit, showed a rebound to a four-month high of 50.1 in August, from a final reading of 47.7 in July, an 11-month low.
“The gap between the official and the HSBC readings that had puzzled the market for four months was basically closed by this surprising rebound. All major activity data are now moving in the same direction, indicating a much-strengthened growth momentum in Q3,” said Yao Wei, China economist at Société Générale, in a note.

MarketWatch/William Watts
Europe stocks rally on Thursday after upbeat PMI reading in China and the euro zone.
Miners, which tend to rise on growth indications from China, climbed after the data. Shares of heavyweights Rio Tinto PLC UK:RIO +1.89%   RIO +2.70%   AU:RIO -0.94% and BHP Billiton PLC UK:BLT +1.90%   BHP +2.18%   AU:BHP -1.04%  both added 1.9% in London.
The U.K.’s FTSE 100 index UK:UKX +0.88%  closed 0.9% higher at 6,446.87.
In the U.S., stocks traded higher, after closing sharply lower on Wednesday on the back of the release of minutes from the Federal Reserve’s July meeting.
“The minutes gave a slightly more cautious take on the outlook, which could give the Fed more wiggle room to delay the start of tapering from the September date consensus now expects,” said Robert Wood, chief U.K. economist at Berenberg in London, in a note.
Data out of the U.S. on Thursday showed jobless claims rose by 13,000 to 336,000 last week, but remained near a postrecession low.
Additionally, the Conference Board’s index of economic indicators rose 0.6% in July to 96.0, slightly above estimates. 
 
Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin.