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Showing posts with label ADVFN III Morning Markets Bulletin.. Show all posts
Showing posts with label ADVFN III Morning Markets Bulletin.. Show all posts

ADVFN III Morning Markets Bulletin January 27, 2014.

ADVFN Morning Euro Markets Bulletin
Daily world financial newsMonday, 27 January 2014

London Market Report
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London open: Markets drop as sell-off continues, BG Group plummets
- FTSE 100 at lowest level since December 18th
- Japan registers record annual deficit in 2013
- BG Group disappoints with 2014 guidance
- AT&T quashes Vodafone bid speculation

techMARK 2,762.54 -0.98%
FTSE 100 6,581.53 -1.23%
FTSE 250 15,547.29 -0.99%

The sell-off that began at the end of last week continued on Monday morning with the FTSE 100 shedding another one per cent, dropping to levels not seen since mid-December.

BG Group was leading the top-tier index lower this morning after disappointing investors with a gloomy outlook for 2014, while losses for heavyweights Vodafone and ARM Holdings also ensured that markets got off to a poor start.

The FTSE 100 was down 1.2% at 6,582 in early trading; it has not closed below this level since December 18th.

London's benchmark index has now fallen by 3.5% over the past three sessions alone as ongoing volatility inemerging-market currency markets, concerns about economic growth in China and nervousness ahead of this week's Federal Reserve policy meeting caused investors to scale back risk appetite significantly.

In contrast, so-called 'safe-haven' assets such as gold and US Treasuries have in turn benefitted, while stocks in defensive sectors such as real estate and tobacco have held up relatively well.

Markets across Europe were tracking losses in Asia overnight, in part fuelled by Japan recording its 18th consecutive monthly trade deficit for December. This took the annual trade gap for 2013 to 11.5tn yen - nearly double that of 2012 and a new all-time high.

"The fact is that in the last 12 months, we haven't really seen a decent correction in US markets, or European ones for that matter and with some doubts about valuations any nervousness on the part on investors is likely to see further volatile trading," said Michael Hewson, Chief Market Analyst at CMC Markets.

BG Group plummets on "very disappointing" guidance

Natural gas producer BG Group has said that 2013 results will be in line with expectations, but production and profits this year will likely be lower due to "short-term issues" in Egypt and the US. The stock sank as much as 14% early on after Chief Executive Chris Finlayson labelled the group's guidance as "very disappointing".

Oil and gas groups Afren and Cairn Energy were dragged lower after the update, along with oilfield services firms AMEC and Petrofac.

US telecoms giant AT&T has quashed talk about a takeover of Vodafone by ruling out a bid for the British mobile phone company, sending shares in the latter firmly lower this morning. Over the past few months, there had been speculation that AT&T would stage a bid for Vodafone to expand its presence in the European market.

RSA Insurance Group dropped after The Sunday Times reported it is considering scrapping its final dividend to raise £500 to fill a balance-sheet loss.

ARM Holdings was in the red after saying that it has appointed Stuart Chambers as Chairman to replace John Buchanan who is stepping down due to a medical condition.

Defensive stocks, often seen as relatively stable investments in times of market volatility, were benefitting this morning from a reduction in risk appetite. Property groups Land SecuritiesBritish Land and Hammersonwere among the better performers, along with tobacco giant Imperial.


FTSE 100 - RisersLand Securities Group (LAND) 1,063.00p +1.24%
Shire Plc (SHP) 2,969.00p +1.19%
Imperial Tobacco Group (IMT) 2,286.00p +1.06%
National Grid (NG.) 796.00p +0.76%
Fresnillo (FRES) 797.50p +0.69%
Smith & Nephew (SN.) 889.00p +0.68%
Hammerson (HMSO) 525.50p +0.67%
Reckitt Benckiser Group (RB.) 4,724.00p +0.66%
British Land Co (BLND) 668.50p +0.60%
Coca-Cola HBC AG (CDI) (CCH) 1,706.00p +0.59%

FTSE 100 - FallersBG Group (BG.) 1,078.00p -14.10%
Vodafone Group (VOD) 216.25p -7.01%
Smiths Group (SMIN) 1,433.00p -2.52%
Amec (AMEC) 1,002.00p -2.05%
Persimmon (PSN) 1,240.00p -1.90%
ITV (ITV) 190.50p -1.85%
Burberry Group (BRBY) 1,451.00p -1.76%
TUI Travel (TT.) 405.20p -1.75%
RSA Insurance Group (RSA) 99.95p -1.72%
Petrofac Ltd. (PFC) 1,149.00p -1.71%

FTSE 250 - RisersMillennium & Copthorne Hotels (MLC) 567.00p +1.52%
KCOM Group (KCOM) 98.75p +1.39%
Elementis (ELM) 254.10p +1.36%
NMC Health (NMC) 465.00p +1.31%
Crest Nicholson Holdings (CRST) 359.60p +1.30%
Perform Group (PER) 239.60p +1.10%
Genesis Emerging Markets Fund Ltd Ptg NPV (GSS) 489.80p +0.99%
Hansteen Holdings (HSTN) 107.50p +0.94%
Hellermanntyton Group (HTY) 314.90p +0.93%
Shaftesbury (SHB) 627.00p +0.80%

FTSE 250 - FallersPayPoint (PAY) 1,042.00p -3.96%
Cairn Energy (CNE) 237.70p -3.96%
Afren (AFR) 145.80p -3.32%
Ferrexpo (FXPO) 157.00p -2.97%
ITE Group (ITE) 285.60p -2.86%
Investec (INVP) 390.90p -2.79%
Regus (RGU) 207.20p -2.72%
Evraz (EVR) 94.35p -2.53%
Supergroup (SGP) 1,487.00p -2.49%

UK Event Calendar
Monday January 27

INTERIM EX-DIVIDEND DATE
Tongaat-Hulett Ltd.

QUARTERLY EX-DIVIDEND DATE
Marsh & Mclennan Cos Inc.

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
New Homes Sales (US) (15:00)
IFO Business confidence index (GER) (09:00)

Q4
Telefonica SA

GMS
ViaLogy

FINALS
Amino Technologies, OJSC Magnit GDR (Reg S), Porvair, Telefonica SA

IMSS
Aveva Group, APR Energy

EGMS
KT Corp. ADR, Urals Energy Public Co Ltd. (DI)

AGMS
British Assets Trust, Edinburgh Worldwide Inv Trust, John Lewis of Hungerford, JPMorgan Chinese Inv Trust

TRADING ANNOUNCEMENTS
OJSC Novolipetsk Steel GDS (Reg S)

FINAL DIVIDEND PAYMENT DATE
Jelf Group



Europe Market Report
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Europe open: Stocks little changed before German and US data
- Ifo releases German business climate index
- US new home sales report released
- Eurogroup's finance ministers meet
- Draghi addresses deflation risk

FTSE 100: -1.08%
DAX: -0.06%
CAC 40: -0.01%
FTSE MIB: -0.57%
IBEX 35: 0.03%
Stoxx 600: -0.62%

European stocks were little changed as investors awaited the Ifo institute's business climate index for Germany and a report on US new home sales.

The business climate index, which measures firms' sentiment about the current business situation and their expectations for the next six months, is forecast to rise to 110 in January from 109.5 in December.

Later in the US, a report on new home sales is expected to show a 1.9% drop for December, compared to a 2.1% fall a month earlier.

The data comes ahead of the Federal Reserve's policy meeting on Wednesday. Policymakers are looking for signs of further recovery before announcing another round of monetary stimulus tapering. The Fed began unwinding its monthly asset purchases by $10bn to $75n in December.

Meanwhile, Eurogroup finance ministers are scheduled to meet this afternoon and the banking union will be on the agenda.

On Saturday, Eurogroup Chairman Jeroen Dijsselbloem said he hopes this year's asset quality review and stress tests of European banks will reveal some bad news to give the process credibility.

"Actually I rather hope it's going to unveil some unpleasantness because that will give us confidence that things are being done properly," he told the World Economic Forum in Davos, Switzerland.

ECB to tackle deflation risk

European Central Bank (ECB) President Mario Draghi has signalled that the monetary authority would begin buying packages of bank loans to households and companies to ward off deflation.

Speaking at Davos, Draghi said he favoured looking at a way to package bank loans to the private sector and for the ECB to buy them if economic conditions worsened.

It would be in stark contrast to traditional quantitative easing and provide a potential fix to the collapse in bank lending in the currency bloc.

"What other assets would we buy? One thing is bank loans […] the issue for further thinking in the future is to have an asset that would capture and package bank loans in the proper way," Draghi added.

AT&T rules out bid for Vodafone

Vodafone's shares declined after AT&T said it doesn't intend to make an offer for the mobile-phone operator.

RSA Insurance Group dropped after The Sunday Times reported it is considering scrapping its final dividend to raise £500m to fill a balance-sheet loss.

Lanxess rallied after the chemical maker announced the appointment of Matthias Zachert as its new Chief Executive Officer.

The euro rose 0.11% to $1.3693.

Brent crude futures fell $0.372 to $107.480 per barrel, according to ICE data.


US Market Report
US close: Markets drop two per cent amid emerging-market fears
- S&P 500 registers worst weekly loss since June 2012
- Emerging-market currency volatility sinks stocks
- Fed speculation ramps up ahead of meeting
- Microsoft gains as Xbox sales boost results

Dow Jones: -1.96%
Nasdaq: -2.15%
S&P 500: -2.09%

Wall Street indices suffered a steep sell-off on Friday on the back of worries about global economic growth amid ongoing volatility in emerging-market currency markets.

The three major US benchmarks sunk by around 2% each, with many labelling it as the start of a long-awaited correction following a strong end to 2013 for stocks.

Even during a shortened week due to the Martin Luther King Jr. Day holiday on Monday, the S&P 500 finished 2.6% lower than where it was last Friday, respresenting its worst weekly percentage loss since June 2012.

Weakness in the Argentinian peso, Turkish lira, Russian ruble, Ukrainian hryvnia, South African rand and Brazilian real was prompting investors to shy away from riskier assets and move towards safer investments such as gold and US Treasuries.

Markets were still reacting to data on Thursday which revealed a surprise contraction in China's manufacturing sector this month, along with a poor batch of economic figures from the US on manufacturing and existing-home sales.

Concerns over the effects of the Federal Reserve's tapering plans were also still having an impact on developing markets, with speculation ramping up ahead of the next policy meeting at the end of the month.

Investors are waiting to see whether policymakers will continue to reduce asset purchases by $10bn a month after last month's decision to cut them from $85bn to $75bn.

Microsoft jumps after strong results

Software giant Microsoft advanced after reporting a better-than-expected rise in both revenue and profit for its fiscal second quarter. Results were helped by strong demand for its new Xbox game console.

Procter & Gamble gained after the consumer-products firm reported a less-than-expected fall in second-quarter earnings and kept its full-year forecasts.

Microsoft and Procter & Gamble, however, were among the few stocks on the Dow Jones Industrial Average to finish in positive territory, with heavyweights General Electric3MBoeing and Visa among the worst performers on global growth concerns.

After a strong start, pharmaceuticals group Bristol-Myers Squibb dropped sharply after profits fell 21% in the fourth quarter.

International Game Technology was a heavy faller after the Las Vegas-based company posted first-quarter profit that missed analysts' estimates.

Intuitive Surgical retreated after the maker of a robotic-surgery devices posted a fall in fourth-quarter sales of systems.

Starbucks edged higher as the coffee chain reported an increase in net income that beat market expectations. Revenues also rose to a record $4.2bn during its fiscal first quarter.


S&P 500 - RisersJuniper Networks Inc. (JNPR) $27.72 +6.57%
Discover Financial Services (DFS) $53.88 +2.82%
F5 Networks Inc. (FFIV) $104.91 +2.36%
Starbucks Corp. (SBUX) $74.98 +2.17%
Sears Holdings Corp. (SHLD) $38.15 +2.11%
Microsoft Corp. (MSFT) $36.81 +2.08%
Kimberly-Clark Corp. (KMB) $107.40 +1.88%
Covidien Plc (COV) $68.00 +1.28%
Procter & Gamble Co. (PG) $79.18 +1.20%
Campbell Soup Co. (CPB) $42.29 +1.03%

S&P 500 - FallersKansas City Southern (KSU) $99.49 -15.17%
International Game Technology (IGT) $15.04 -14.79%
Intuitive Surgical Inc. (ISRG) $410.76 -6.43%
Wynn Resorts Ltd. (WYNN) $193.14 -5.90%
W.W. Grainger Inc. (GWW) $241.85 -5.77%
Bristol-Myers Squibb (BMY) $50.92 -5.62%
Janus Capital Group Inc. (JNS) $11.45 -5.61%
Keycorp (KEY) $12.93 -5.48%
Avon Products Inc. (AVP) $15.50 -5.26%
Alcoa Inc. (AA) $11.44 -5.22%

Dow Jones I.A - RisersMicrosoft Corp. (MSFT) $36.81 +2.08%
Procter & Gamble Co. (PG) $79.18 +1.20%
Merck & Co. Inc. (MRK) $51.98 +0.74%

Dow Jones I.A - FallersGeneral Electric Co. (GE) $24.95 -3.37%
3M Co. (MMM) $130.22 -3.33%
Boeing Co. (BA) $136.65 -3.30%
Visa Inc. (V) $221.25 -3.07%
Pfizer Inc. (PFE) $30.09 -2.97%
E.I. du Pont de Nemours and Co. (DD) $59.97 -2.88%
Walt Disney Co. (DIS) $72.72 -2.77%
United Technologies Corp. (UTX) $111.80 -2.65%
Caterpillar Inc. (CAT) $86.17 -2.61%
American Express Co. (AXP) $86.95 -2.49%

Nasdaq 100 - RisersF5 Networks Inc. (FFIV) $104.91 +2.36%
Starbucks Corp. (SBUX) $74.98 +2.17%
Microsoft Corp. (MSFT) $36.81 +2.08%
Maxim Integrated Products Inc. (MXIM) $29.20 +1.11%
Equinix Inc. (EQIX) $183.88 +0.68%
Whole Foods Market Inc. (WFM) $51.61 +0.21%
Mattel Inc. (MAT) $43.00 +0.09%

Nasdaq 100 - FallersVimpelcom Ltd Ads (VIP) $11.60 -6.60%
Intuitive Surgical Inc. (ISRG) $410.76 -6.43%
Wynn Resorts Ltd. (WYNN) $193.14 -5.90%
Fastenal Co. (FAST) $45.09 -5.15%
Vertex Pharmaceuticals Inc. (VRTX) $79.77 -4.84%
Nxp Semiconductors Nv (NXPI) $45.58 -4.74%
Celgene Corp. (CELG) $161.22 -4.35%
NetApp Inc. (NTAP) $43.96 -4.12%
Regeneron Pharmaceuticals Inc. (REGN) $279.61 -4.11%
Facebook Inc. (FB) $54.45 -3.85%

Newspaper Round Up
Monday newspaper round-up: ECB, Vodafone, Rolls Royce
Mario Draghi has signalled that he would be prepared for the European Central Bank to fight deflation in Europe by buying packages of bank loans to households and companies. Such a move would mark a sharp departure from traditional quantitative easing and provide a potential fix to the collapse in bank lending in the currency bloc. – Financial Times

Vodafone has approached the private equity owners of a Spanish broadband operator about a potential £7bn offer as part of its efforts to expand across Europe. The British company, already one of the largest telecoms operators in Spain, is understood to have entered into talks with the shareholders of Ono, which recently declared its interest in a flotation in its home market. – The Times

US jet-turbine manufacturer Pratt&Whitney is hoping to make a comeback with its new generation of jet engines – centred around the "geared turbofan" – which allows for greater fuel-efficiency. For Zafar Khan, analyst at Societe Generale, since Rolls Royce is a relatively small outfit, while its US rival is part of a deep-pocketed conglomerate, United Technologies, the latter might contemplate a bid for the UK outfit to ensure its return to the market for widebodied aircraft. – The Economist

Britain's water companies could be told they cannot impose the increases on customer bills they had hoped to as regulators clamp down on the rises. Ofwat is expected on Monday morning to announce it has blocked the planned increases in water costs for the years 2015-2020 in an effort to call time on the industry's debt-driven business model. – Daily Telegraph

Plans to boost North Sea oil and gas production, which experts say could generate at least £200bn for the UK economy, are set to be adopted by the energy secretary. Ed Davey is expected to back demands from the industry for a much tougher regulatory regime in the North Sea, requiring companies to collaborate to maximise the recovery of oil and gas from existing fields and new discoveries. – Financial Times

Ed Balls has hit back at accusations that Labour is anti-business for bringing back the 50p top rate of income tax for those earning over £150,000, suggesting it should be only a temporary measure. Amid complaints from City tycoons and donors about a return to the days of Labour kicking the rich, the shadow chancellor won the backing of senior party figures on the understanding the main purpose of the tax rise is fairness at a time of spending restraint. – The Guardian

The scale of London's dominance of the economy will be revealed today in figures showing a "desperately unbalanced" recovery, in which ten times as many jobs are being created in the capital as in any other British city. To the likely concern of economists and opposition politicians, London accounted for 80% of national private sector jobs growth between 2010 and 2012, while Britain's next nine largest cities created only 10% of all new private sector work. – The Times

Mark Carney, the Governor of the Bank of England, has told a group of senior bankers that dealing with the legacy of past wrongdoing is becoming the most pressing issue for the industry. Mr Carney is understood to have discussed the growing problem of conduct risks with Douglas Flint, chairman of HSBC, Peter Sands, chief executive of Standard Chartered, and Deutsche co-chief executive Anshu Jain, in a private session at the World Economic Forum. – Daily Telegraph

ADVFN III Morning Markets Bulletin November 19, 2013.

ADVFN IIIMorning Euro Markets Bulletin
Daily world financial newsTuesday, 19 November 2013

London Market Report
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London open: Markets head lower ahead of German ZEW data
- ZEW survey tipped to rise in November
- FOMC minutes in focus
- easyJet reports strong annual profit growth

techMARK 2,640.79 -0.47%
FTSE 100 6,684.07 -0.59%
FTSE 250 15,241.76 -0.32%

UK markets opened firmly lower on Tuesday morning as investors refrained from building positions ahead of a key reading of German investor confidence.

The German ZEW economic sentiment survey, which attempts to predict economic conditions in six months' time, is expected to rise to 54 in November, from 52.8 the month before. The report comes a day afterBundesbank said Europe's biggest economy is growing solidly and its upturn will likely be consolidated in the coming months.

However, with the economic data schedule on the whole again pretty light, the focus will remain on tomorrow's release of the minutes of October's Federal Open Market Committee (FOMC). Although few are still expecting the Fed to begin scaling back its asset purchase programme this year - especially after Fed Chair nomineeJanet Yellen's dovish comments last week - investors will be watching closely for hints of a potential time frame for the 'taper'.

"With Fed head [Ben] Bernanke on his way out in a matter of months, the market will be closely scrutinising the minutes to gauge a better understanding of his last possible moves as the Chairman," said Head of Trading Joe Rundle from ETX Capital.

US markets finished mixed last night after the Dow Jones Industrial Average and S&P 500 briefly topped record intraday levels of 16,000 and 1,800, respectively.

Concerns over the recent run on equity markets dampened sentiment on Monday after US activist investor Carl Icahn was reported as saying that a "big drop" could be around the corner. According to Reuters, Icahn said he was "very cautious on equities today" given that valuations are rich and earnings are bolstered by low borrowing costs rather than management's efforts to lift results.

easyJet flying high as profits surge

Budget airline easyJet gained early on after boosting annual profits by more than half and saying it is returning £308m to shareholders. easyJet said its allocated seating strategy, website improvements and its Europe by easyJet advertising campaign helped it to boost pre-tax profit in the year to September 30th rose 51% to £478m.

Investment in its television productions paid off for ITV in the third quarter, with revenues rising ahead of guidance and audience share swelling to boost future advertising potential. The stock advanced strongly in morning trade.

Heading the other way was Intertek as the product testing firm said that the industry-wide headwinds experienced in the first half have persisted for longer than expected.

Mining stocks were largely out of favour this morning with Fresnillo, Vedanta, Anglo American, Antofagasta and Rio Tinto tracking metals prices lower.

Fund manager Aberdeen was in the red, pulling back after a 15% surge on Monday following the announced acquisition of the Scottish Widows Investment Partnership Group from Lloyds, as well a strong increase in annual profits. Numis downgraded the stock to 'hold' this morning but lifted its target from 465p to 495p.


FTSE 100 - RiserseasyJet (EZJ) 1,330.00p +5.89%
Amec (AMEC) 1,184.00p +1.46%
GlaxoSmithKline (GSK) 1,625.50p +0.74%
Capita (CPI) 983.50p +0.67%
National Grid (NG.) 779.00p +0.58%
SSE (SSE) 1,393.00p +0.29%
TUI Travel (TT.) 388.30p +0.28%
British Sky Broadcasting Group (BSY) 823.50p +0.18%
Imperial Tobacco Group (IMT) 2,429.00p +0.12%
British American Tobacco (BATS) 3,381.00p +0.06%

FTSE 100 - FallersIntertek Group (ITRK) 3,035.00p -4.59%
Aberdeen Asset Management (ADN) 477.00p -2.59%
William Hill (WMH) 359.80p -2.44%
Vedanta Resources (VED) 966.00p -2.28%
Anglo American (AAL) 1,410.00p -1.98%
Smiths Group (SMIN) 1,406.00p -1.88%
Fresnillo (FRES) 898.50p -1.86%
Antofagasta (ANTO) 797.50p -1.85%
Petrofac Ltd. (PFC) 1,179.00p -1.75%
Rio Tinto (RIO) 3,211.50p -1.62%

FTSE 250 - RisersAfren (AFR) 159.80p +7.32%
Enterprise Inns (ETI) 148.00p +7.25%
Keller Group (KLR) 1,053.00p +4.78%
Thomas Cook Group (TCG) 144.40p +2.78%
Redrow (RDW) 265.00p +1.81%
AL Noor Hospitals Group (ANH) 860.00p +1.78%
Serco Group (SRP) 430.00p +1.49%
Centamin (DI) (CEY) 51.10p +1.39%
COLT Group SA (COLT) 130.10p +1.25%
Homeserve (HSV) 247.00p +1.19%

FTSE 250 - FallersPolymetal International (POLY) 541.50p -2.61%
Ladbrokes (LAD) 173.70p -2.53%
Kazakhmys (KAZ) 243.20p -2.33%
IG Group Holdings (IGG) 600.50p -2.28%
Lonmin (LMI) 324.90p -2.23%
Bwin.party Digital Entertainment (BPTY) 130.60p -2.17%
Ferrexpo (FXPO) 182.60p -1.99%
Hochschild Mining (HOC) 137.40p -1.86%
Investec (INVP) 426.40p -1.64%

UK Event Calendar
Tuesday November 19

INTERIMS
Big Yellow Group, Carclo, CML Microsystems, Eckoh, Entertainment One Limited, Halma, Homeserve, Intermediate Capital Group, Mckay Securities, Schroder Real Estate Investment Trust Ltd, Sepura, Vectura Group

INTERIM DIVIDEND PAYMENT DATE
Intu Properties

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
New Car Registrations (EU) (10:00)
Wholesale Price Index (GER) (07:00)
ZEW Survey (EU) (10:00)
ZEW Survey (GER) (10:00)

Q3
AFI Development

Q4
GW Pharmaceuticals

FINALS
easyJet, Enterprise Inns, GW Pharmaceuticals

ANNUAL REPORT
World Careers Network

IMSS
FBD Holdings, Galliford Try, IFG Group, Keller Group, Paddy Power, Smiths Group

EGMS
Marwyn Value Investors Ltd., Nokia OYJ

AGMS
Berkeley Resources Ltd. (DI), F&C UK Real Estate Investments Limited, Galliford Try, Marwyn Value Investors Ltd., Red Emperor Resources NL (DI), Smiths Group, Wasabi Energy

FINAL DIVIDEND PAYMENT DATE
Asian Citrus Holding


Europe Market Report
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Europe open: Stocks fall before German confidence data, FOMC minutes
- German confidence figures out
- Investors wait on FOMC minutes
- European new car sales rise

FTSE 100: -0.57%
DAX: -0.38%
CAC 40: -0.71%
FTSE MIB: -0.72%
IBEX 35: -0.82%
Stoxx 600: -0.54%

European stocks declined before the release of German economic confidence figures and the US Federal Open Market Committee's (FOMC) meeting minutes.

ZEW's German economic sentiment index for November is expected to climb to 54 from 52.8 last month when released today. A reading above 50 signals expansion.

The report comes a day after Bundesbank said Europe's biggest economy is growing solidly and its upturn will likely be consolidated in coming months.

While Germany achieved growth of 0.7% in the second quarter, preliminary data shows it expanded by just 0.3% between July and September as exports weighed.

"There's a good chance that the economic upturn in Germany will be further cemented in the coming months," the central bank said in its November monthly report.

Residential construction and private consumption, boosted by robust labour market and strong wage increase, have helped lift the economy despite weak exports.

In the US, investors are already looking ahead to tomorrow when the minutes of the latest Federal Reservepolicy meeting will be released. The minutes are expected to shed further light on the FOMC's reason behind its decision to maintain its monthly $85bn bond buying programme.

"Uncertainty over when the Fed is going to begin tapering its bond buying program is starting to make investors a little nervous at the moment," according to Craig Erlam, Market Analyst at Alpari.

Meanwhile, European new car sales have risen for two consecutive months for the first time since 2011, data revealed today.

The European Automobile Manufacturers Association said registrations in October increased 4.6% from a year earlier to 1.04m autos, driven by demand in Spain.

Paddy Power, easyJet

Paddy Power declined after the Irish betting company cut its forecast for full-year profit growth.

easyJet rallied as the European carrier said it will pay an additional dividend after full-year profit increased 51%.

Swiss Re Ltd advanced as the world's second-largest reinsurer agreed to buy an 11% in Sul America SA from ING Groep NV to expand in Brazil.

Other asset classes mixed

The euro rose 0.05% to $1.3512.

Brent crude futures dropped $0.407 to $108.030 per barrel.


US Market Report
US close: Stocks end broadly lower after Icahn warns of 'big drop'
- Icahn spooks markets, warns of 'big drop'
- Caution sets in after Dow tops 16,000, S&P 500 hits 1,800
- Boeing rises after record plane orders

Dow Jones: 0.09%
Nasdaq: -0.93%
S&P 500: -0.34%

US stock markets ended mixed on Monday as investors turned cautious after indices reached milestone intraday records.

The Dow Jones Industrial Average managed to surpass 16,000 for the first time but finished with gains of just 0.09%, while the S&P 500 briefly touched 1,800 before pulling back into the red, falling 0.34% on the day. The Nasdaq meanwhile finished with heavier losses of 0.93% after some sharp falls by Tesla MotorsFacebook,Microsoft.

Concerns over the recent run on equity markets dampened sentiment on Monday after activist investor Carl Icahn was reported as saying that a "big drop" could be around the corner.

According to Reuters, Icahn said he was "very cautious on equities today" given that valuations are rich and earnings are bolstered by low borrowing costs rather than management's efforts to lift results.

Speaking at the Reuters Global Investment Outlook Summit, he said: "Very simplistically put, a lot of the earnings are a mirage […] They are not coming because the companies are well run but because of low interest rates."

Markets were also starting to look ahead with caution to the minutes of the latest Federal Open Market Committee (FOMC) meeting due to be released on Wednesday.

Although few are still expecting the Fed to begin scaling back its asset purchase programme this year - especially after Fed Chair nominee Janet Yellen's dovish comments last week - investors will be watching closely for hints of a potential time frame for the 'taper'.

Boeing gains on record orders

Boeing gained following news the company secured record plane orders on the first day of the Dubai Air Show. It has signed a new deal with Abu Dhabi's state investment fund Mubadala for $2.5bn in advanced composites and machine metals. The company has also made an agreement with Abu Dhabi manufacturing company Tawazun Precision Industries to set up a facility in the United Arab Emirates for producing aerospace parts.

Tyson Foods was in positive territory after reporting a 41% jump in fourth-quarter earnings as it ramped up production in China. The company also raised its quarterly dividend by 50% and reported better-than-expected revenue guidance for the full year.

Tesla Motors was a heavy faller on Monday, providing a drag on the Nasdaq, with analysts citing a lack of near-term catalysts for the electric car maker as it faces an investigation at its Model S plant in California following an accident. The share price finished at a four-month low of $121.55.

Also on the Nasdaq, heavyweight social media network Facebook finished with heavy losses while tech groupNvidia slipped as Morgan Stanley cut its rating on the shares to 'underweight' from 'equal weight'.

Software giant Microsoft edged lower after analysts at Bank of America downgraded the stock from 'neutral' to 'underperform'.


S&P 500 - RisersDun & Bradstreet Corp. (DNB) $113.43 +2.41%
FMC Corp. (FMC) $75.10 +1.71%
NASDAQ OMX Group Inc. (NDAQ) $37.60 +1.40%
Sempra Energy (SRE) $91.16 +1.29%
Omnicom Group Inc. (OMC) $69.95 +1.26%
Celgene Corp. (CELG) $152.98 +1.24%
Moody's Corp. (MCO) $74.80 +1.16%
Pentair Ltd - Reg (PNR) $70.48 +1.06%
Bemis Co. Inc. (BMS) $39.15 +0.95%
Aon plc (AON) $81.58 +0.95%

S&P 500 - FallersApplied Materials Inc. (AMAT) $16.94 -3.31%
Whole Foods Market Inc. (WFM) $56.99 -3.14%
Vertex Pharmaceuticals Inc. (VRTX) $61.69 -2.68%
Alexion Pharmaceuticals Inc. (ALXN) $120.97 -2.50%
Nvidia Corp. (NVDA) $15.78 -2.41%
Netflix Inc. (NFLX) $341.77 -2.28%
Sears Holdings Corp. (SHLD) $63.01 -2.14%
Lam Research Corp. (LRCX) $51.52 -2.07%
First Solar Inc. (FSLR) $62.87 -2.06%
NetApp Inc. (NTAP) $40.57 -2.05%

Dow Jones I.A - RisersTravelers Company Inc. (TRV) $88.67 +0.48%
Intel Corp. (INTC) $24.60 +0.33%
Procter & Gamble Co. (PG) $84.84 +0.00%
Goldman Sachs Group Inc. (GS) $164.40 +0.00%
Exxon Mobil Corp. (XOM) $95.27 +0.00%
United Technologies Corp. (UTX) $108.59 +0.00%
Caterpillar Inc. (CAT) $83.74 +0.00%
Chevron Corp. (CVX) $120.06 +0.00%
JP Morgan Chase & Co. (JPM) $54.87 +0.00%
McDonald's Corp. (MCD) $96.92 +0.00%

Dow Jones I.A - FallersMicrosoft Corp. (MSFT) $37.20 -1.69%
Cisco Systems Inc. (CSCO) $21.29 -1.14%
3M Co. (MMM) $129.85 -0.00%
American Express Co. (AXP) $82.80 -0.00%
Coca-Cola Co. (KO) $40.22 -0.00%
General Electric Co. (GE) $27.20 -0.00%
Verizon Communications Inc. (VZ) $50.31 -0.00%
Pfizer Inc. (PFE) $32.20 -0.00%
Wal-Mart Stores Inc. (WMT) $79.22 -0.00%
Nike Inc. (NKE) $79.22 -0.00%

Nasdaq 100 - RisersCelgene Corp. (CELG) $152.98 +1.24%
Amgen Inc. (AMGN) $116.03 +0.91%
Fiserv Inc. (FISV) $109.49 +0.81%
Charter Communications Inc. (CHTR) $129.54 +0.66%
Green Mountain Coffee Roasters Inc. (GMCR) $63.41 +0.63%
Citrix Systems Inc. (CTXS) $57.17 +0.47%
Vodafone Group Plc ADS (VOD) $37.42 +0.46%
Baidu Inc. (BIDU) $162.87 +0.33%
Intel Corp. (INTC) $24.60 +0.33%
Symantec Corp. (SYMC) $23.65 +0.28%

Nasdaq 100 - FallersTesla Motors Inc (TSLA) $121.58 -10.24%
Facebook Inc. (FB) $45.83 -6.49%
Applied Materials Inc. (AMAT) $16.94 -3.31%
Whole Foods Market Inc. (WFM) $56.99 -3.14%
Sirius XM Holdings Inc (SIRI) $3.76 -2.72%
Vertex Pharmaceuticals Inc. (VRTX) $61.69 -2.68%
Alexion Pharmaceuticals Inc. (ALXN) $120.97 -2.50%
Nvidia Corp. (NVDA) $15.78 -2.41%
Netflix Inc. (NFLX) $341.77 -2.28%
Sears Holdings Corp. (SHLD) $63.01 -2.14%


Newspaper Round Up
Tuesday newspaper round-up: House prices, Severn Trent, Bitcoins
A crash in house prices is one of the fastest-growing risks for Britain's lenders, according to a survey by the Bank of England. Banks, hedge funds and insurers told the central bank that the housing market was becoming a "bubble" that posed dangerous threats to financial stability. They also warned, in the Bank's half-yearly Systemic Risk Survey of finance professionals, that a "snapback" in interest rates from the historic low of 0.5% to more normal levels would hit borrowers and send shares, property and debt markets reeling, The Timesreports.

Liv Garfield, responsible for the £2.5bn rollout of super-fast fibre broadband as BT's boss of Openreach, is leaving to become chief executive of FTSE 100 water company Severn Trent. Garfield, 38, will take up the role in spring 2014 following the retirement of Tony Wray. Her annual salary will be £650,000, with a 25% pension contribution taking the package up to £812,500, and will also be eligible for an annual bonus of up to 120% of her £650,000 salary.The surprise move will be considered a blow for BT, according to The Guardian.

A US Senate hearing on the "risks, threats and promises" of virtual currencies sparked a new leg up in the price of Bitcoin, the experimental currency which has risen by more than 5,000% in value this year. An intervention by Ben Bernanke, chairman of the Federal Reserve, enabled Bitcoin's enthusiasts to put the spotlight where they believe its potential value lies, namely as a cheaper alternative to the current system for transferring money around the world, the Financial Times says.

The company behind iconic British treats such as Jammie Dodgers and Wagon Wheels has been snapped up by a Canadian pension fund in a deal thought to be worth almost £350m. Burton's Biscuits, which employs some 800 workers at its Sighthill plant in Edinburgh, has been sold to Ontario Teachers' Pension Plan (OTPP). Jo Taylor, head of the pension fund's London office, said the plan was to support growth plans at the business, with the possibility of using OTPP's formidable firepower to make strategic acquisitions, The Scotsman says.

JPMorgan Chase is expected to pay around $4bn as part of a compensation agreement that could hit $13bn as talks to finalise the deal took place last night between the United States Government and the investment bank. The final settlement with the US Justice Department, which could be announced today, will include the previously reported $4bn that was agreed between JPMorgan and the Federal Housing Finance Agency, writesThe Times.

British companies trying to plug the black holes in their final salary pension schemes have spent £182bn since the beginning of quantitative easing in 2009. The introduction of the Bank of England's 'money printing' economic stimulus measure has taken a substantial toll on firms running lucrative defined benefits pension schemes. They pumped £29bn into reducing their deficits in 2012/13. This is actually a fall on the £36bn paid in 2011/12, but employers have made an additional £18bn in 'special' payments to ensure their shortfalls don't widen even further, according to The Daily Mail.

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