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Showing posts with label ADVFN III Morning Euro Markets Bulletin; June 07. Show all posts
Showing posts with label ADVFN III Morning Euro Markets Bulletin; June 07. Show all posts

Jun 7, 2013

ADVFN Morning Euro Markets Bulletin; June 07, 2013.

ADVFN III Morning Euro Markets Bulletin
Daily world financial news Friday, 07 June 2013

Friday, June 7, 2013
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Stocks flat as markets nervously await US jobs data
After falling to its worst level in over six weeks, London's FTSE 100 opened broadly flat on Friday morning with investors refraining from building positions ahead of the all-important US jobs report due out this afternoon.

The Footsie finished 1.3% lower on Thursday at 6,336, its lowest level since April 22nd, as the recent pattern of market volatility continued in anticipation of the key 'risk event' later today, May's reading of non-farm payrolls by the Labor Department. Many see this release as one of the determining factors in how the Federal Reserve's potential 'exit strategy' from stimulus will play out in the near future.

"Traders this morning are clearly quite apprehensive about the upcoming jobs report, adjusting their risk profiles accordingly given the mixed data signals this week from the US labour market," said Market Strategist Ishaq Siddiqi from ETX Capital. This comes after the much worse-than-expected fall in the unofficial ADP data on Wednesday and Thursday's in-line decline in jobless claims yesterday.

"A reading above 169k will surely escalate expectations that the Federal Reserve will unwind asset purchases in coming months, while a number sharply below would suggest otherwise. Today’s figure for that reason will dominate headlines, influencing price-action until the Fed’s next policy meeting this month," Siddiqi said.

Markets will also still be reacting to yesterday's move by the European Central Bank (ECB) to slash growth forecasts for the region for this year. The ECB expects the single-currency economy to contract by 0.6% in 2013, worse than its previous -0.5% estimate.

Meanwhile, the Bundesbank has cut German growth forecasts and sees risks to the downside as the Eurozone recession continues to weaken demand for German exports. The German central bank cut the growth forecast for this year to 0.3%, from the prior 0.4%. It also revised the 2014 growth estimate down to 1.5% from the prior 1.9%.
FTSE 100: Aberdeen drops after BofA downgrade
Asset management group Aberdeen was a heavy faller this morning after Bank of America Merrill Lynch downgraded its rating for the stock to 'underperform' and cut its target from 475p to 410p.

The broker said that Aberdeen's organic inflows could slow significantly from consensus expectations. "With the stock up around 20% year-to-date, the valuation premium to peers looks unwarranted."

Chemicals group Johnson Matthey was also in the red this morning, pulling back after a strong rise yesterday. Citigroup, Deutsche Bank and Goldman have all raised their target for the stock this morning following Thursday's well-received full-year results.

BG Group was lower despite the announcement that a third floating production, storage and offloading (FPSO) vessel has come on stream offshore Brazil in the pre-salt Santos Basin as it progresses with its development on the massive BM-S-11 block.

Mining stocks were performing well this morning with ENRC, Fresnillo, Glencore Xstrata and Randgold among the best performers.
FTSE 250: KCOM and Bellway impress early on
Telecoms and internet communications provider KCOM Group was a high riser after upping its dividend by 10% as promised after a 3.1% rise in pre-tax profit. Sales however fell for a fifth year in a row, down 3.7%.

Housebuilder Bellway advanced after saying that the second half has been "encouraging" so far with the government's 'Help to Buy' scheme boosting demand. Reservations averaged 160 per week between the start of February and the end of May, up an impressive 31% with the same period last year. Sector peers Persimmon and Taylor Wimpey rose in sympathy.

AIM/Small cap report
FTSE 100 - Risers
Eurasian Natural Resources Corp. (ENRC) 249.50p +2.72%
Fresnillo (FRES) 1,142.00p +2.42%
Glencore Xstrata (GLEN) 317.20p +2.01%
TUI Travel (TT.) 341.20p +1.85%
BT Group (BT.A) 307.00p +1.76%
Land Securities Group (LAND) 923.00p +1.65%
Randgold Resources Ltd. (RRS) 5,070.00p +1.42%
easyJet (EZJ) 1,199.00p +1.27%
British Land Co (BLND) 588.00p +1.03%
Hammerson (HMSO) 496.20p +0.87%

FTSE 100 - Fallers
Aberdeen Asset Management (ADN) 417.10p -1.35%
Sainsbury (J) (SBRY) 359.50p -1.05%
British American Tobacco (BATS) 3,465.00p -0.94%
WPP (WPP) 1,090.00p -0.91%
ARM Holdings (ARM) 870.50p -0.91%
Meggitt (MGGT) 520.00p -0.86%
Babcock International Group (BAB) 1,108.00p -0.81%
Smiths Group (SMIN) 1,297.00p -0.77%
Experian (EXPN) 1,173.00p -0.76%
Melrose Industries (MRO) 249.30p -0.76%

FTSE 250 - Risers
New World Resources A Shares (NWR) 101.00p +7.05%
KCOM Group (KCOM) 81.50p +6.05%
888 Holdings (888) 144.50p +3.21%
Barratt Developments (BDEV) 315.40p +3.11%
Bellway (BWY) 1,353.00p +2.89%
Diploma (DPLM) 556.00p +2.77%
Persimmon (PSN) 1,205.00p +2.64%
Kazakhmys (KAZ) 324.20p +2.37%
Taylor Wimpey (TW.) 95.35p +2.36%
Spirent Communications (SPT) 127.20p +2.25%

FTSE 250 - Fallers
Perform Group (PER) 582.50p -1.60%
Imagination Technologies Group (IMG) 333.30p -1.59%
Euromoney Institutional Investor (ERM) 943.00p -1.46%
Henderson Group (HGG) 150.90p -1.44%
Telecity Group (TCY) 957.50p -1.19%
Home Retail Group (HOME) 152.70p -1.17%
Elementis (ELM) 224.10p -1.10%
Mitie Group (MTO) 247.30p -1.08%
Centamin (DI) (CEY) 37.66p -1.00%
Heritage Oil (HOIL) 139.00p -1.00%

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James Halstead, Regenersis, Sage Group, Spirit Pub Company


Balance of Trade (GER) (07:00)
Consumer Credit (US) (20:00)
Current Account (GER) (07:00)
Industrial Production (GER) (11:00)
Non-Farm Payrolls (US) (13:30)
Retail Price Index (GER) (07:00)
Unemployment Rate (US) (13:30)

Vertu Motors, Volga Gas

Hornby, KCOM Group, Real Estate Credit Investments PCC Ltd

Polyus Gold International Ltd

Baker Steel Resources Trust Ltd., Central Rand Gold Ltd, Group Ltd GDR (Reg S), MD Medical Group Investments GDR (Reg S), Polemos, Premier Oil, Regal Petroleum, Shaft Sinkers Holdings, Third Point Offshore Investors Limited, Volga Gas


Balance of Trade (09:30)

21st Century Technology, Cape, Clarkson, Frenkel Topping Group, Glencore Xstrata, Gresham House, H&T Group, Intertek Group, Laird, Neptune-Calculus Income & Growth VCT, Northbridge Industrial Services, Polyus Gold International Ltd, Porvair, Rightmove, Sagentia Group, William Hill, Xstrata

US Market Report
Stocks End Volatile Session Mostly Higher Ahead Of Jobs Report

Stocks fluctuated over the course of the trading session on Thursday before ending the day notably higher. The strength seen at the close of trading partly offset the steep losses that were posted in the previous session.

The major averages saw further upside going into the close, ending the session at their best levels of the day. The Dow rose 80.03 points or 0.5 percent to 15,040.62, the Nasdaq climbed 22.68 points or 0.7 percent to 3,424.05 and the S&P 500 advanced 13.66 points or 0.9 percent to 1,622.56.

The volatility seen on the day came as traders expressed uncertainty ahead of the release of the Labor Department's monthly jobs report on Friday. Economists expect employment to increase by about 167,000 jobs in May following the addition of 165,000 jobs in April. The unemployment rate is expected to come in unchanged at 7.5 percent. The report could have a substantial impact on the near-term outlook for both the economy and the Federal Reserve's stimulus program.

Recent comments from Fed officials have suggested that signs of sustained improvement in the labor market could lead the central bank to scale back its asset purchase program within the next few meetings. Before the start of trading, the Labor Department released a report showing a modest drop in initial jobless claims in the week ended June 1st. The report said initial jobless claims dropped to 346,000, a decrease of 11,000 from the previous week's revised figure of 357,000. Economists had been expecting jobless claims to dip to 345,000.

Jennifer Lee, senior economist at BMO Capital, said the weekly claims data suggests continued improvement in the labor market but noted that the latest reading is not the survey week and will not impact the May jobs report.

Traders were also reacting to the latest news out of Europe, where the European Central Bank announced its widely anticipated decision to leave interest rates unchanged.

In his subsequent press conference, ECB President Mario Draghi indicated that the bank's monetary policy stance will remain accommodative for as long as necessary. Draghi also noted that the ECB has downwardly revised its economic projections for 2013, while the bank has upwardly revised its forecast for 2014.

Sector News

Despite the volatility shown by the broader markets, networking stocks continued to perform well throughout the session. The NYSE Arca Networking Index surged up by 3.2 percent to its best closing level in a year.

Ciena (CIEN) helped lead the networking sector higher, with the network equipment maker jumping 17.4 percent after reporting better than expected second quarter results and providing upbeat guidance.

Significant strength also emerged among housing stocks, as reflected by the 2.8 percent gain posted by the Philadelphia Housing Sector Index. The gain by the index came after it ended the previous session at its lowest closing level in over a month.

Biotechnology stocks also showed a strong move back to the upside, driving the NYSE Arca Biotechnology Index up by 2.3 percent. The biotech index was also bouncing off a more than one-month closing low.

Brokerage, railroad, commercial real estate, and telecom stocks also ended the day notably higher, recovering from the broad based sell-off seen on Wednesday.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Thursday following the overnight sell-off on Wall Street. Japan's Nikkei 225 Index fell by 0.9 percent, while Hong Kong's Hang Seng Index dropped by 1.1 percent.

In the bond market, treasuries ended the day moderately higher but well off their best levels of the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 2.5 basis points to 2.075 percent.

Looking Ahead

The monthly jobs report will be in the spotlight on Friday, although the reaction to the data may be counterintuitive in light of the focus on the Fed's stimulus program.

Friday newspaper round-up
Apple, G4S, M&S...
The Guardian says that tech giant Apple has been accused of securing preferential terms from mobile operators wanting to offer the iPhone in an attempt to squeeze out competition from rival brands, according to one of the company's former senior executives.
Meanwhile, Apple will announce the launch of a music-streaming service called iRadio next week, according to The Times, and has reportedly been in discussions with ad executives to build support for the service.

The Independent says that G4S' annual general meeting on Thursday was assailed by protestors and a large number of shareholders angry at executive pay. 21% of shareholders voted against remuneration for executives, the paper says.

Marc Bolland, the frontman of Marks & Spencer didn't receive a share bonus worth a potential £2.9m after the High Street department store unveiled its worst annual profits in four years, writes The Scotsman. However, the paper says that his pay package was still worth some £2.1m.

"The beginnings of a trade war between China and the European Union could escalate into a damaging battle that might hurt the UK, economists have warned," writes The Telegraph. This comes after China responded to EU anti-dumping tariffs on solar panels with a levy on European wine.

The Guardian says that UK real estate agent Foxtons is preparing for a stock-market flotation which could value it at more than £400m. Private-equity group BC Partners has appointed banks to prepare for an initial public offering, the paper says.

Virgin Rail is to sue Network Rail due to the infrastructure provider's constant delays on the West Coast mainline, reports the Finacial Times.

The Times says that Roger Bootle's consultancy business Capital Economics is up for sale and will make the well-known economist tens of millions of pounds.

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