London open: Stocks dented by Japanese export figures
Market Movers
- techMARK 2,106.71 -0.29%
- FTSE 100 5,883.12 -0.22%
- FTSE 250 12,042.11 -0.27%
- Japanese export data misses forecasts
- US corporate earnings in focus
- Aggreko extends losses
US corporate earnings and some disappointing economic data from Japan were weighing on stocks in London on Monday morning.
Japanese exports declined 10.3% last month, worse than the 5.8% decrease in August and the 9.9% fall expected. The trade deficit was 588.6bn yen, higher than the 547.9bn expected by a consensus of analysts. Imports rose by a more-than-expected 4.1%.
"With the economic data schedule on the light side today main focus will be once again on US corporate earnings with Caterpillar, Texas Instruments and Yahoo scheduled to report," said Markus Huber from ETX Capital.
He said: "Overall markets are expected to be range-bound today with a continuing slight bias to the downside as neither an aid request from Spain has been forthcoming so far nor have earnings out of the US managed to completely convince traders that the earnings situation will be getting better any time soon." FTSE 100: Aggreko suffers from downgrade
Temporary power and temperature control group Aggreko was extending losses after announcing on Friday that exchange rates and increased bad debt provisions will have a 2.5% negative impact on its full-year bottom line.
Today, the stock was being dampened by a downgrade by HSBC to 'underweight'. HSBC, along with fellow brokers Jefferies, JPMorgan Cazenove and Barclays Capital, also cut its target for the shares.
Oil giant BP was lower after confirming that it is in advanced talks with Russian state oil firm Rosneft over the sale of its 50% stake in TNK-BP.
Global power systems group Rolls-Royce made gains after being awarded a contract by China Guangdong Nuclear Power Corporation (CGNPC) to supply its Spinline digital safety instrumentation and control technology (I&C) for the modernisation programme of the Ling Ao nuclear power plant.
FTSE 250: Devro drops after profit warning
Devro, a sausage casing supplier, has warned that full-year operating profits will be slightly below expectations, although still ahead of last year. Shares tanked in the opening hour.
Trading systems developer Fidessa fell after warning persistent challenges in the financial markets weighed on third-quarter equity market volumes; the on-going pressure means that full-year revenue is likely to be unchanged from the year before.
Central Europe-focused coal and coke producer New World Resources was in the red after saying that one of its employees was fatally injured at a mine in the Czech Republic at the weekend.
Heading the other way was aerospace technology group Senior after saying that it was on track to hit 2012 profit expectations despite a deterioration in some markets.
FTSE 100 - Risers
Randgold Resources Ltd. (RRS) 7,550.00p +1.82%
Barclays (BARC) 236.55p +1.15%
Antofagasta (ANTO) 1,316.00p +1.00%
Evraz (EVR) 250.60p +0.93%
Anglo American (AAL) 1,914.00p +0.92%
Aberdeen Asset Management (ADN) 328.80p +0.92%
Aviva (AV.) 339.70p +0.74%
Fresnillo (FRES) 1,904.00p +0.63%
Old Mutual (OML) 178.70p +0.62%
Associated British Foods (ABF) 1,368.00p +0.51%
FTSE 100 - Fallers
Shire Plc (SHP) 1,818.00p -1.99%
Aggreko (AGK) 2,097.00p -1.87%
GKN (GKN) 207.70p -1.24%
Centrica (CNA) 327.20p -1.15%
British American Tobacco (BATS) 3,154.50p -1.13%
International Consolidated Airlines Group SA (CDI) (IAG) 160.50p -1.05%
Reckitt Benckiser Group (RB.) 3,670.00p -0.84%
SSE (SSE) 1,438.00p -0.83%
BG Group (BG.) 1,340.00p -0.78%
Bunzl (BNZL) 1,030.00p -0.77%
FTSE 250 - Risers
Senior (SNR) 205.40p +4.64%
Essar Energy (ESSR) 135.90p +2.80%
Ted Baker (TED) 939.50p +2.12%
JD Sports Fashion (JD.) 785.00p +2.08%
Petra Diamonds Ltd.(DI) (PDL) 102.40p +1.99%
Redrow (RDW) 159.20p +1.79%
Raven Russia Ltd (RUS) 68.70p +1.78%
Grainger (GRI) 109.40p +1.58%
COLT Group SA (COLT) 120.00p +1.52%
Renishaw (RSW) 1,721.00p +1.41%
FTSE 250 - Fallers
Devro (DVO) 311.00p -7.44%
Fidessa Group (FDSA) 1,320.00p -3.79%
Spectris (SXS) 1,712.00p -3.77%
Bumi (BUMI) 247.80p -3.05%
Perform Group (PER) 438.60p -2.53%
Hikma Pharmaceuticals (HIK) 751.50p -2.40%
Domino Printing Sciences (DNO) 537.50p -2.09%
Ocado Group (OCDO) 66.40p -1.99%
Drax Group (DRX) 522.00p -1.97%
UK Event Calendar Monday October 22
INTERIMS
e-Therapeutics
INTERIM DIVIDEND PAYMENT DATE
Fyffes
IMSS
Dragon Oil, Senior
SPECIAL DIVIDEND PAYMENT DATE
InterContinental Hotels Group
AGMS
Nighthawk Energy, Shanta Gold Ltd.
FINAL DIVIDEND PAYMENT DATE
Diageo, Renishaw
| Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Europe open: Investors nervous as confession season trundles on
-Philips earnings rise on cost savings
-Automobile suppliers lower after Deutsche Bank downgrade
-European company results to be scrutinized
-Investors watching technical support levels
-Some still fear Spain will wait too long to ask for aid
FTSE-100: -0.25%
Dax-30: -0.18%
Cac-40: -0.11%
FTSE-Mibtel 30: 0.05%
Ibex 35: -0.02%
Stoxx 600: -0.11%
The main European equity benchmarks have begun the day slightly lower, but they are now trimming their losses.
That following the sharp drops seen last Friday on Wall Street, with some observers now fearing that recent poor company earnings from several technology heavyweights -such as IBM or Google- may be a harbinger of economic weakness to come. That, at last, is what some analysts are saying as the corporate confession season trundles on.
To be had in account, this week will see another deluge of company earnings in the US, with those in Europe progressively ramping up.
According to Thomson Reuters data, out of the 8% of companies on the STOXX Europe 600 index that have reported results so far, 48% have missed forecasts.
Back in the US, of the 116 S&P 500 companies which have confessed thus far, 58% have missed on revenue expectations, as the economy took a tool on their results.
Adding to the gloom, and acting as a backdrop, was the weak trade data out overnight in Japan. As well, in its latest quarterly report the Bank of Japan has cut its economic assessment for most regions in the country, due to the slowdown overseas it said.
Results out this morning from the likes of Electrolux and Philips have not done much to assuage investors' concerns, such that technical support levels for the main equity benchmarks will now be closely scrutinized so as to guard against losses possibly deepening.
Philips, the lighting company, has reported a 43% rise in earnings before interest, taxes, amortization and one-time items, to €562m, which is well above analysts' expectations. Positively, its sales figures also came in ahead of estimates, yet management attributed the better than forecast earnings to the cost savings initiatives undertaken.
Deutsche bank has lowered its view on shares of French car parts supplier Valeo to hold.
From a sector stand-point the worst performance on the DJ Stoxx 600 can be seen in the shares of the following industrial groups: Automobiles&Parts (-0.65%), Utilities (-0.57%) and Chemicals (-0.52%).
No major economic data releases are due out this morning. Small moves in other asset classes
The euro/dollar is now up by 0.10% to the 1.3037 dollar mark.
Front month Brent crude futures are now rising by 0.136 dollars to 110.29 dollar mark on the ICE. |
| US Market Report | US close: Stocks drop as heavy hitters disappoint
Market movers
Dow Jones: 13,344 (-1.51%)
Nasdaq: 3,006 (-2.18%)
S&P 500: 1,433 (-1.67%) Large falls for some economic bellwethers saw US benchmarks tank on Friday, as concerns about the Eurozone debt crisis faded temporarily into the background.
Colin Cieszynski from CMC Markets said: "Following on from Google's big disappointment midday, a number of America's largest companies (GE, MicroSoft, McDonalds and others) have come in below expectations on earnings, revenues or guidance."
European stocks slipped earlier today as eyes were kept firmly pinned to the two-day EU summit in Brussels. European leaders announced that they would set up a Eurozone bank supervisor run by the European Central Bank (ECB) by the end of the year.
"We have a date in place now for the legislative framework, which we didn't have before – and that in itself is an important step forward," said European Council President Herman Van Rompuy. Microsoft, McDonald's and GE dampen sentiment
Software colossus Microsoft set alarm bells ringing in the technology sector, with a set of first-quarter results which showed post-tax earnings down 22% year-on-year to $4.47bn, or 53 cents a share. Analysts had been expecting earnings per share of around 56 cents.
Market strategist Ishaq Siddiqi from ETX Capital said: "Both Google and Microsoft join ASML, IBM and Intel in the raft of disappointing tech earnings released so far which certainly does not bode well for others due to report in the sector."
Fast-food chain McDonald's dropped after recording its lowest quarterly restaurant sales increase in nine years while earnings missed forecasts for the second quarter in a row.
Industrial conglomerate General Electric also disappointed the market. The firm's third-quarter revenue of $36.35bn was about half a billion dollars shy of the Street's expectations.
Restaurant group Chipotle Mexican Grill plummeted 15% after a 20% jump in third-quarter profits missed consensus estimates. The company said that it is thinking of upping its menu prices as a result of rising food costs.
Advanced Micro Devices suffered a sell-off after announcing that it was laying off 15% of its staff, equal to 1,800 employees.
S&P 500 - Risers
Capital One Financial Corp. (COF) $60.75 +6.02%
Robert Half International Inc. (RHI) $27.24 +5.05%
Sandisk Corp. (SNDK) $44.02 +2.71%
People's United Financial Inc. (PBCT) $12.29 +2.08%
Honeywell International Inc. (HON) $62.50 +1.76%
Ingersoll Rand Ltd. (IR) $46.46 +1.75%
Dean Foods Co. (DF) $18.22 +1.56%
PulteGroup Inc. (PHM) $17.89 +1.36%
Apartment Investment & Management Co. (AIV) $26.86 +1.24%
Iron Mountain Inc. (IRM) $34.08 +0.89%
S&P 500 - Fallers
Advanced Micro Devices Inc. (AMD) $2.17 -16.98%
Chipotle Mexican Grill Inc. (CMG) $242.97 -15.02%
E*TRADE Financial Corp. (ETFC) $8.57 -9.02%
Parker-Hannifin Corp. (PH) $78.83 -7.33%
First Solar Inc. (FSLR) $23.54 -6.36%
Air Products & Chemicals Inc. (APD) $80.21 -6.02%
Nvidia Corp. (NVDA) $12.10 -5.87%
Peabody Energy Corp. (BTU) $25.86 -5.76%
Janus Capital Group Inc. (JNS) $8.55 -5.73%
Electronic Arts Inc. (EA) $13.08 -5.42%
Dow Jones I.A - Risers
Home Depot Inc. (HD) $61.89 +0.15%
Dow Jones I.A - Fallers
McDonald's Corp. (MCD) $88.79 -4.38%
General Electric Co. (GE) $22.03 -3.42%
Caterpillar Inc. (CAT) $83.86 -3.19%
Cisco Systems Inc. (CSCO) $18.04 -3.04%
Microsoft Corp. (MSFT) $28.64 -2.90%
Alcoa Inc. (AA) $9.01 -2.17%
E.I. du Pont de Nemours and Co. (DD) $49.34 -2.14%
AT&T Inc. (T) $35.32 -1.94%
Merck & Co. Inc. (MRK) $47.03 -1.94%
Hewlett-Packard Co. (HPQ) $14.52 -1.93%
Nasdaq 100 - Risers
Sandisk Corp. (SNDK) $44.02 +2.71%
O'Reilly Automotive Inc. (ORLY) $80.58 +0.83%
Check Point Software Technologies Ltd. (CHKP) $41.72 +0.73%
Fossil Inc. (FOSL) $89.35 +0.68%
Randgold Resources Ltd. Ads (GOLD) $120.55 +0.54%
Intuitive Surgical Inc. (ISRG) $538.35 +0.47%
Vodafone Group Plc ADS (VOD) $28.38 +0.00%
Nasdaq 100 - Fallers
Marvell Technology Group Ltd. (MRVL) $7.57 -14.31%
Nvidia Corp. (NVDA) $12.10 -5.87%
Electronic Arts Inc. (EA) $13.08 -5.42%
Alexion Pharmaceuticals Inc. (ALXN) $107.62 -5.32%
Monster Beverage Corp (MNST) $53.28 -4.91%
Vertex Pharmaceuticals Inc. (VRTX) $50.24 -4.53%
Celgene Corp. (CELG) $75.16 -4.23%
Expedia Inc. (EXPE) $52.10 -4.02%
Sears Holdings Corp. (SHLD) $58.72 -3.75%
Priceline.Com Inc. (PCLN) $560.58 -3.74% |
| FX and Commodities round-up | FX round-up: Dollar beefs up as earnings disappoint
The dollar strengthened against major currencies on Friday as investors turned to its safe haven appeal following a raft of disappointing update from some of North America's biggest companies.
Bellwethers such as Microsoft, McDonald's and General Electric issued results below market expectations. As a result market confidence soured and traders swiftly turned to the safety of the greenback.
The ICE dollar index, which measures the US unit against a basket of six major currencies, advanced to 79.628 from 79.355 on Thursday.
The dollar was also boosted by a weaker than expected US home sales report. The latest data showed existing homes sales fell 1.7% in September to a seasonally adjusted annual rate of 4.75m compared to expectations of a rate of 4.8m.
The data poured cold water on recently encouraging data from the US.
While the dollar made strong progress, the euro's risk status fell out of favour. The single currency traded at $1.3025 compared with $1.3071 the previous session.
Uncertainty about Spain also continued to hamper the euro on Friday as traders showed their disappointment about lack of progress on a Spanish bailout request.
Instead the European Union Summit issued just a widely anticipated agreement to set up one manager to overlook Eurozone banks.
Against the yen, the dollar bought ¥79.31 from ¥79.25 previous session as the safety of the yen increased. The euro fell ¥103.25 after hitting a five-month high on Thursday.
Sterling changed hands at $1.5999, down from $1.6051 on Thursday but came off intra-day lows after better than expected UK public borrowing figures. Commodities: Oil nurses sharp losses
Crude oil futures skidded to the lowest level in nearly two weeks on Friday on worries about global oil demand.
Oil for November delivery, which expired at the end of the week, dropped $2.05 to settle at $90.05 a barrel on the New York Mercantile Exchange and briefly traded below $90 earlier in the session.
Prices mirrored weak equities after sentiment was hurt by a string of disappointing updates from bellwethers such as Microsoft, McDonald's and General Electric. All issued results below market expectations, sparking jitters about the outlook for some of the nation's biggest companies.
Economic data also disappointed with US existing home sales down 1.7% in September to an annual rate of 4.75m. Analysts had pencilled in a rate of 4.8m.
The stronger dollar also hurt interest in oil as it makes it more expensive for holders of other currencies.
Focus was also on the closure of the Keystone pipeline, which runs from Canada to the Midwest, as it investigates whether repairs have to be carried out.
On the ICE Futures exchange Brent crude for December delivery declined $2.28 to $110.14 a barrel.
Among precious metals gold plunged over $20 on Friday as the stronger dollar eroded the yellow metal's appeal.
Gold for December delivery lost $20.70 to settle at $1,724 an ounce on the Comex division of the New York Mercantile Exchange.
Silver for December fell 77 cents to settle at $32.10 an ounce while December palladium declined $24.20 to $623 an ounce. Platinum for January tanked $28.20 to close at $1,615.50 an ounce. |
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