Mixed start; African Barrick jumps
Market Movers
techMARK 2,122.95 -0.06%
FTSE 100 5,833.67 +0.01%
FTSE 250 11,504.08 +0.05% African Barrick up as China Gold shows interest Markets continue to sift through global economic data Wen sees 'growing room for policy operation' London's benchmark index was broadly flat on Thursday morning as investors continue to digest a raft of economic data that has been released over the past few days. In the UK, minutes from the latest Monetary Policy Committee meeting showed that members voted unanimously this month in favour of maintaining the Bank of England Bank Rate at 0.5% and the asset purchase programme at £375bn. Unemployment in the UK fell from 8.1% to 8.0% in July, versus economists' expectations of no change. Market analyst Michael Hewson from CMC Markets said this morning that the figures "raise more questions than answers" with respect to the UK economy: "How can it be that unemployment is falling while the economy is in the grip of three successive quarters of economic contraction, and it is this apparent contradiction that is causing a lot of debate." Meanwhile, US data out yesterday afternoon came in mixed, with industrial output improving and New York manufacturing falling. Jobless claims and the Philly Fed index are due for release later today. Also in focus early on was the news of slowing inward investment in China in July. Foreign direct investment in China fell 8.7% to a two-year low of $7.58bn last month. Yesterday, Chinese Premier Wen Jiabao said that he sees "growing room for monetary policy operation" as inflation slows down.
African Barrick Gold (ABG) jumped after announcing its holding company , Barrick Gold, is in talks with China National Gold Group about the possibility of selling its stake in the London-listed miner to China's largest gold producer. Should China Gold buy up more than 30% of the voting interest in ABG from Barrick Gold, it would then be required to make an offer for the whole of ABG's issued ordinary share capital. Pharmaceuticals group Hikma was a high riser after first-half revenues rose 34.8%, helped by contributions from recent acquisitions. Organic revenue growth was still a solid 7.6%. Software specialist Micro Focus edged higher after revealing news of a 50p-a-share cash return and share consolidation. The firm also said that first-quarter financials were in line with expectations, with adjusted earnings flat year-on-year on a constant currency basis. Engineering support services firm Babcock was in the red after Espirito Santo downgraded its rating on the stock to 'neutral', while natural gas giant BG Group fell after Morgan Stanley cut its rating to 'equal weight'. Publishing group Reed Elsevier was in demand after announcing the appointment of Duncan Palmer as its Chief Financial Officer, having lured him away from US company Owens Corning. Palmer will take over from Mark Armour, who is retiring at the end of the year.
FTSE 100 - Risers
Weir Group (WEIR) 1,747.00p +2.16%
Polymetal International (POLY) 920.00p +1.55%
Evraz (EVR) 266.20p +1.45%
IMI (IMI) 896.50p +1.36%
Vedanta Resources (VED) 931.00p +1.25%
Kazakhmys (KAZ) 722.00p +0.98%
Randgold Resources Ltd. (RRS) 6,180.00p +0.82%
Capital Shopping Centres Group (CSCG) 332.80p +0.82%
ITV (ITV) 85.85p +0.76%
Tesco (TSCO) 335.10p +0.75%
FTSE 100 - Fallers
Admiral Group (ADM) 1,162.00p -1.69%
Carnival (CCL) 2,158.00p -1.51%
Eurasian Natural Resources Corp. (ENRC) 374.80p -1.26%
BG Group (BG.) 1,305.50p -1.17%
International Consolidated Airlines Group SA (CDI) (IAG) 146.00p -1.08%
ICAP (IAP) 330.20p -0.90%
Standard Life (SL.) 273.00p -0.84%
ARM Holdings (ARM) 579.50p -0.77%
Prudential (PRU) 817.00p -0.73%
Vodafone Group (VOD) 187.40p -0.72%
FTSE 250 - Risers
African Barrick Gold (ABG) 432.30p +9.83%
Hikma Pharmaceuticals (HIK) 767.00p +5.79%
Avocet Mining (AVM) 92.10p +4.24%
Savills (SVS) 389.20p +2.99%
NMC Health (NMC) 197.00p +2.18%
New World Resources A Shares (NWR) 294.00p +2.05%
Petra Diamonds Ltd.(DI) (PDL) 104.00p +1.96%
Petropavlovsk (POG) 439.80p +1.62%
Centamin (DI) (CEY) 70.50p +1.44%
Jupiter Fund Management (JUP) 218.90p +1.39%
FTSE 250 - Fallers
Talvivaara Mining Company (TALV) 134.10p -4.42%
Balfour Beatty (BBY) 286.80p -3.14%
CSR (CSR) 322.90p -3.00%
Salamander Energy (SMDR) 208.00p -2.30%
Bumi (BUMI) 354.10p -1.88%
JD Sports Fashion (JD.) 664.92p -1.86%
Galliford Try (GFRD) 626.50p -1.80%
Wetherspoon (J.D.) (JDW) 465.10p -1.75%
Redrow (RDW) 135.90p -1.74%
Home Retail Group (HOME) 87.90p -1.62%
| FX round-up |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Euro falls against dollar after economic data
The euro fell against the dollar on Wednesday, hitting its lowest level in six weeks after economic data from the US indicated that the Federal Reserve may decide to further ease its monetary policy.
The single currency dropped to $1.2284, having traded hands at $1.2324 the previous day. It last closed below $1.23 on July 30th.
The ICE dollar index, which measures the greenback against a basket of six major currencies, climbed from 82.540 on Wednesday to 82.673 last night.
The WSJ dollar index, which measures the greenback against a larger collection of currencies, climbed from 71.67 to 71.79 overnight.
Meanwhile, comments from European Economic and Monetary Affairs Commissioner Olli Rehn have put the issue of a Spanish bailout back in the spotlight.
Speaking on Bloomberg Television yesterday Rehn signalled that Spain's government is considering a request for a sovereign bailout although no decision has been made.
"The Spanish government has an open mind on this issue, but no decision has been made," Rehn said. "We stand ready to act if there is a request."
Against the euro, the pound bought €1.2762, compared to €1.2711 the previous evening. The British currency swapped hands for $1.5690, compared to $1.5681 on Tuesday. Elsewhere the dollar rose to trade hands at ¥78.98 comared to ¥78.74 the prior evening. UK Event Calendar INTERIMS
BATM Advanced Communications Ltd., Cineworld Group, Hikma Pharmaceuticals, PV Crystalox Solar, Talvivaara Mining Company, Xaar
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Bloomberg Consumer Confidence (US) (14:45)
Building Permits (US) (13:30)
Consumer Price Index (EU) (10:00)
Continuing Claims (US) (13:30)
Harmonised Index of Consumer Prices (EU) (10:00)
Housing Starts (US) (13:30)
Initial Jobless Claims (US) (13:30)
Philadelphia Fed Index (US) (15:00)
Q2
Talvivaara Mining Company
GMS
Aegis Group, Energy Technique
IMSS
Micro Focus International
AGMS
IGas Energy, Triad Group
UK ECONOMIC ANNOUNCEMENTS
Internet Retail Sales (09:30)
Retail Sales (09:30)
FINAL DIVIDEND PAYMENT DATE
F&C Global Smaller Companies, Moss Bros Group, MS International |
| US Market Report | Techs and financials shine on mixed day
Dow Jones -7.36 at 13,164.78
Nasdaq +13.95 at 3,030.93
S&P 500 +1.60 at 1,405.53 Stocks ended the day mixed on Wednesday, although on the whole things were looking marginally higher at the closing bell.
Things continue to look reasonably upbeat in the technology sector, with Facebook being 'liked' early on and gaining steadily later on after it was revealed that Soros Fund Management, managed by legendary investor George Soros, bought $10m-worth of shares in second quarter.
Elsewhere in the tech sector, Netflix, the entertainment media streaming company, has announced it is to start operating in Denmark, Finland, Norway and Sweden by the end of the year.
Although the Dow Jones ended the day lower, it settled above the 13,100 mark for an eighth consecutive session.
The S&P 500, meanwhile, continues what appears to be a slow motion advance and is now very close to its highest level in three months.
Financial stocks were performing well, with the Financial Select Sector SPDR fund, which keeps track of financial companies on the S&P 500, climbing 0.3%. Manufacturing confusion The Empire State manufacturing index fell to -5.9 this month, well down from 7.4 in July. Consensus forecasts were for a more modest fall to 7.0. The Institute for Supply Management (ISM) said that its monthly index was 49.8 in July, only slightly higher than the three-year low of 49.7 reached the month before. Any figure below 50 suggests contraction.
Industrial output increased by 0.6% in July, only slightly ahead of the 0.5% growth expected. The US consumer price index was unchanged in July, showing no change for the third time in four months. The market had been expecting a 0.2% increase. The annual inflation rate eased to 1.4% (consensus forecast: 1.5%) from 1.7%. Companies Clothing retailer Abercrombie & Fitch saw its shares rise after announcing plans to increase its current share buyback plan by 10m shares and revealing that its inventory situation was significantly better than it had been at the end of the second quarter.
Security National Finance shares rocketed by more than a third after the firm released significantly better-than-expected second quarter results. Following an increase in second quarter profit of more than 11 times, Impac Mortgage Holdings shares almost doubled. Sales were up 33%.
Meanwhile, stationery supplier Staples declined 15% after admitting its second quarter earnings dropped 32% compared to the same period the previous year after a fall in international sales. The firm lowered its full year outlook, saying sales look set to be flat.
Weaker-than-expected results at retailer Citi Trends led to a significant drop in the share price. Canadian Solar fell after the firm reported a loss during the second quarter after increased sales were offset by lower prices of solar equipment and panels. Other markets The September futures contract for crude oil rose 0.96%, or $0.90, to settle at $94.33 per barrel on the New York Mercantile Exchange. 10-year US treasuries fell by 19/32 dollars, with yields at 1.8%. S&P 500 - Risers
Abercrombie & Fitch Co. (ANF) $35.23 +8.97%
JDS Uniphase Corp. (JDSU) $11.56 +8.24%
Sprint Nextel Corporation (S) $5.39 +8.02%
Metropcs Communications Inc. (PCS) $9.79 +6.64%
First Solar Inc. (FSLR) $21.10 +5.32%
Akamai Technologies Inc. (AKAM) $36.80 +3.84%
Starbucks Corp. (SBUX) $48.10 +3.60%
Constellation Brands Inc. Class A (STZ) $31.65 +3.16%
Urban Outfitters Inc. (URBN) $31.24 +3.03%
Fossil Inc. (FOSL) $87.12 +3.03%
S&P 500 - Fallers
Staples Inc. (SPLS) $11.50 -14.53%
Deere & Co. (DE) $75.10 -6.28%
Alpha Natural Res (ANR) $6.61 -3.36%
Sherwin-Williams Co. (SHW) $138.37 -2.12%
Duke Energy Corp. (DUK) $66.77 -2.10%
Peabody Energy Corp. (BTU) $21.85 -1.93%
Entergy Corp. (ETR) $69.87 -1.74%
Gannett Co. Inc. (GCI) $15.10 -1.63%
E*TRADE Financial Corp. (ETFC) $8.53 -1.61%
R.R. Donnelley & Sons Co. (RRD) $12.52 -1.57%
Dow Jones I.A - Risers
Bank of America Corp. (BAC) $7.87 +1.16%
Cisco Systems Inc. (CSCO) $17.35 +1.05%
American Express Co. (AXP) $56.66 +1.03%
Wal-Mart Stores Inc. (WMT) $74.45 +0.59%
Home Depot Inc. (HD) $55.00 +0.53%
Alcoa Inc. (AA) $8.73 +0.46%
Walt Disney Co. (DIS) $49.89 +0.40%
Travelers Company Inc. (TRV) $63.75 +0.33%
E.I. du Pont de Nemours and Co. (DD) $50.28 +0.28%
United Technologies Corp. (UTX) $77.99 +0.27%
Dow Jones I.A - Fallers
Boeing Co. (BA) $73.07 -1.00%
Intel Corp. (INTC) $26.27 -0.79%
Merck & Co. Inc. (MRK) $44.06 -0.79%
Chevron Corp. (CVX) $112.57 -0.66%
Johnson & Johnson (JNJ) $68.35 -0.42%
AT&T Inc. (T) $37.10 -0.40%
Hewlett-Packard Co. (HPQ) $19.29 -0.36%
McDonald's Corp. (MCD) $87.81 -0.35%
Verizon Communications Inc. (VZ) $44.19 -0.32%
Caterpillar Inc. (CAT) $87.61 -0.30%
Nasdaq 100 - Risers
Green Mountain Coffee Roasters Inc. (GMCR) $24.11 +5.51%
Akamai Technologies Inc. (AKAM) $36.80 +3.84%
Starbucks Corp. (SBUX) $48.10 +3.60%
Fossil Inc. (FOSL) $87.12 +3.03%
Electronic Arts Inc. (EA) $13.09 +2.99%
Symantec Corp. (SYMC) $17.67 +2.85%
Cerner Corp. (CERN) $73.49 +2.80%
Sears Holdings Corp. (SHLD) $56.60 +2.59%
Sandisk Corp. (SNDK) $41.56 +2.54%
Adobe Systems Inc. (ADBE) $32.91 +2.51%
Nasdaq 100 - Fallers
Staples Inc. (SPLS) $11.50 -14.53%
Dollar Tree Stores Inc. (DLTR) $50.00 -1.22%
Vodafone Group Plc ADS (VOD) $29.63 -1.13%
Micron Technology Inc. (MU) $6.49 -0.92%
Cognizant Technology Solutions Corp. (CTSH) $63.73 -0.90%
eBay Inc. (EBAY) $44.98 -0.84%
Intel Corp. (INTC) $26.27 -0.79%
Nvidia Corp. (NVDA) $14.48 -0.75%
DIRECTV (DTV) $51.53 -0.73%
Warner Chilcott Plc (WCRX) $17.42 -0.68% |
| Thursday newspaper round-up | StanChart, BoE, Osborne... Standard Chartered was attacked by one of the top lawyers in the City last night for agreeing a quick settlement of the money-laundering allegations that threatened to destroy the bank and warned that it could be forced to pay out billions more before it can properly settle the scandal. City observers with experience of Wall Street say the deal may ramp up the appetite of the other watchdogs for greater amounts of blood, with the more senior regulators unlikely to settle for less than Standard Chartered paid to the DFS over allegations that it violated US laws in $250bn worth of trades with Iran. Although the bank's shares jumped on investor relief that the issue may be resolved quickly, experienced City lawyers warn otherwise. [ The Independent] A senior Bank of England policymaker said quantitative easing was a better way of kickstarting the economy than further interest rate cuts. On a visit to Northern Ireland, monetary policy committee (MPC) member Paul Fisher told the Belfast Telegraph: "If we thought [rate cuts] would add more stimulus we would do it but asset purchase through quantitative easing is a more powerful way of aiding the economy … but we're keeping that under review." His comments came as minutes of the MPC's last meeting a fortnight ago showed that it had voted unanimously to keep its interest rate at 0.5% and its quantitative easing (QE) programme unchanged at £375m. Despite the unanimous vote on QE, the minutes point to a continued split on the committee. [ The Guardian] George Osborne has been urged to abandon his austerity plans and boost infrastructure spending to rescue the economy by a group of top economists who backed his deficit cutting plans just two years ago. The revolt by the same experts whose support for the Tory economic strategy was a pivotal moment in the pre-election debate in 2010 will be acutely embarrassing for the Chancellor. He is already facing calls from institutions such as the International Monetary Fund and employers body the CBI to take action on growth in the wake of the double-dip recession. [ The Telegraph]
Brazil’s president Dilma Rousseff has launched a R$133bn ($65.6bn) stimulus package to spur investment in the country’s creaking infrastructure and shore up ailing investor confidence in the world’s second-largest emerging market economy. In the first of what are expected to be a series of announcements in the coming weeks, Ms Rousseff said the government would sell concessions in nine highways and 12 railways before moving onto other areas of infrastructure. [ FInancial Times] A majority stake in world’s largest photography and video agency has been sold for $3.3 billion to the Carlyle Group. Getty Images, which supplies images to media companies and advertising groups, said that the sale would enable it to develop its operations and invest in new technologies, such as 3-D pictures. The purchase price is significantly lower than the $4 billion that the previous private equity owner, Hellman & Friedman, is said to have been seeking. However, sources familiar with the deal said that the buyout firm had managed to double its investment in the four years since it acquired Getty. [ The Times] Reed Elsevier, the Anglo-Dutch legal and scientific publisher, has picked Duncan Palmer, chief financial officer of Owens Corning, to replace its long-serving finance director, Mark Armour, according to people familiar with the decision. Under pressure from investors over lacklustre growth, Reed announced last October that Mr Armour would step down at the end of this year. It is set to announce on Thursday that Mr Palmer will join the company as chief financial officer designate this month and take over from Mr Armour in November. [ Financial Times] | | | | |
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