London open: Whitbread and the miners provide a drag early on
Market Movers
- techMARK 2,100.84 -0.15%
- FTSE 100 5,836.18 -0.79%
- FTSE 250 11,987.57 -0.44%
- Corporate earnings in the spotlight
- Spain weighs on sentiment as Moody's downgrades five regions
- Whitbread disappoints, ARM in demand
The FTSE 100 index fell in early trading on Tuesday with growth-sensitive stocks out of favour as investors remain cautious about the Eurozone and ahead of some corporate earnings results due out in the US.
"With the corporate reporting season getting underway, Asian shares have failed to inspire as investors stayed cautious after global shares faltered overnight on weak earnings report and outlook. While excessive risk aversion has softened there is little to be positive about the global growth slowdown, any dip in the markets will however be a buying opportunity," said trade Max Cohen from Spreadex.
Meanwhile, concerns about Spain have increased over the last few days after a decent outcome at the regional elections for Prime Minister Mariano Rajoy is thought to have reduced the pressure on him to request a bailout.
Ratings agency Moody's downgraded five Spanish regions to 'junk' today due to the "deterioration in their liquidity positions, as evidenced by their very limited cash reserves as of September 2012 and their significant reliance on short-term credit lines to fund operating needs."
Markus Huber, head of German HNW Trading at ETX Capital, said this morning: "While so far the downgrade of the five regions had a fairly limited impact on the markets, traders are still expected to keep a close eye on periphery yields today with any spike to the upside most likely to hit stock markets too."
Nevertheless, with few economic data on the agenda today, US corporate earnings will continue to take centre stage with many constituents of the Dow Jones scheduled to report.
"Range trading will most likely continue with further losses possible as stocks are struggling to find any positive news that would give them a new push to the upside, however downside potential should be limited as similar as seen yesterday in the US bargain hunting is likely to set in as traders take advantage of cheaper prices," Huber said. FTSE 100: Burberry and the miners provide a drag
Luxury brand Burberry was among the worst performers along with mining giants ENRC, Kazakhmys, Vedanta, Rio Tinto and Randgold.
Whitbread disappointed despite first-half revenues topping the one-billion-pound mark after strong performances from Premier Inn and Costa Coffee.
Heading the other way was information services firm Experian after increasing its holding in Serasa, Brazil's leading personal credit checker.
Chip designed ARM Holdings jumped after sales and profits beat forecasts in the third quarter. The firm's outlook for the final three months was also upbeat as it boosted a record order backlog and robust opportunity pipeline.
Building materials group CRH was a heavy faller after HSBC downgraded its rating on the stock to 'neutral'. Consumer products firm Unilever was also lower after Oriel Securities cut its recommendation to 'hold'.
Banking group Lloyds was lower this morning. Credit Suisse reiterated its 'neutral' rating for the lender ahead of its third-quarter results on November 1st. The broker said that "given recent strength the stock should give back some of the gains".
FTSE 250: Chemring drops after CEO exit
Shares in defence group Chemring dropped after its CEO David Price resigned with immediate effect. He will be replaced by Mark Papworth, a former Wood Group executive.
Wireless technology firm CSR jumped after revenues were up in the third quarter as it said it had successfully completed a deal with Samsung, paving the way for a big investor pay out.
Morgan Crucible, the British maker of ceramics used in wind-turbine blades, was in demand on speculation that it has become a potential takeover target.
Technology group Laird gained after expressing confidence that it will meet its expectations for the full year on the back of a solid third quarter.
Meanwhile, AIM-listed upmarket handbags and leather accessories group Mulberry plunged after its said that full-year revenues would be below expectations.
FTSE 100 - Risers
Experian (EXPN) 1,088.00p +3.92%
ARM Holdings (ARM) 609.50p +2.52%
Tesco (TSCO) 317.60p +0.81%
Babcock International Group (BAB) 963.00p +0.52%
Wolseley (WOS) 2,670.00p +0.34%
Centrica (CNA) 326.90p +0.28%
National Grid (NG.) 707.00p +0.21%
British Sky Broadcasting Group (BSY) 725.00p +0.14%
United Utilities Group (UU.) 722.50p -0.07%
Pearson (PSON) 1,211.00p -0.08%
FTSE 100 - Fallers
Burberry Group (BRBY) 1,118.00p -4.61%
Whitbread (WTB) 2,248.00p -3.23%
Kazakhmys (KAZ) 734.00p -2.97%
Eurasian Natural Resources Corp. (ENRC) 336.60p -2.66%
Vedanta Resources (VED) 1,113.00p -2.54%
Rio Tinto (RIO) 3,120.50p -2.30%
Glencore International (GLEN) 342.30p -2.27%
Xstrata (XTA) 971.20p -2.17%
Lloyds Banking Group (LLOY) 39.94p -2.16%
Antofagasta (ANTO) 1,281.00p -2.14%
FTSE 250 - Risers
CSR (CSR) 368.00p +8.65%
Savills (SVS) 410.70p +1.99%
COLT Group SA (COLT) 120.30p +1.35%
F&C Asset Management (FCAM) 96.35p +1.31%
Computacenter (CCC) 372.20p +1.22%
Grainger (GRI) 108.30p +1.22%
JD Sports Fashion (JD.) 765.00p +1.19%
JPMorgan American Inv Trust (JAM) 941.00p +1.18%
Dialight (DIA) 1,161.00p +1.13%
Perpetual Income & Growth Inv Trust (PLI) 283.80p +1.10%
FTSE 250 - Fallers
Chemring Group (CHG) 319.00p -7.88%
Man Group (EMG) 78.45p -3.09%
Bumi (BUMI) 252.20p -2.89%
Kenmare Resources (KMR) 41.68p -2.57%
Lonmin (LMI) 495.40p -2.29%
Homeserve (HSV) 234.00p -2.13%
Bwin.party Digital Entertainment (BPTY) 119.20p -2.13%
Talvivaara Mining Company (TALV) 133.40p -2.06%
Centamin (DI) (CEY) 102.30p -1.63%
UK Event Calendar Tuesday October 23
INTERIMS
B.P. Marsh & Partners, C&C Group, LiDCO Group, Whitbread
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Confidence Indicator (EU) (10:00)
Q3
ARM Holdings, CSR, Norsk Hydro ASA, Virgin Media Inc.
FINALS
Avacta Group
IMSS
Premier Foods
AGMS
Arcontech Group, MobileWave Group , Murray Income Trust
UK ECONOMIC ANNOUNCEMENTS
BBA Mortgage Lending Figures (09:30)
FINAL DIVIDEND PAYMENT DATE
Anite, IG Group Holdings, Mattioli Woods
Q1
Oil & Gas Development Company Ltd GDR (Reg S)| Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Europe mid-morning: Peugeot said to be close to agreement with State
-Spanish GDP contracted by 0.4% in quarter three
-Spanish bad bank assets in focus
-Positive comments from Wilbur Ross on Spanish banks
-Peugeot near deal for aid –Bbg
-Hearing on legal complaint against ESM scheduled for today -Bbg
-Greek PM says deal with coalition partners must be reached today or tomorrow
FTSE-100: -0.64%
Dax-30: -0.88%
Cac-40: -0.67%
FTSE Mibtel 30: -0.72%
Ibex 35: -0.69%
Stoxx 600: -0.64%
European equities are trading lower despite a last-minute turn around, last night, on Wall Street and on the back of some weaker than expected earnings reports Europe-wide this morning.
Also weighing on sentiment is the poor guidance given by US technology giant Texas Instruments yesterday, after the close of trading.
Furthermore, market sentiment seems to have turned against Spain a little today, despite what at first glance looks like much as expected Treasury bill auction results. Results undershoot expectations
Germany's second biggest lender has mandated UBS to help it sell its custodian business, two people familiar with the transaction told Reuters.
Norwegian aluminium producer Norsk Hydro, Europe's third largest, registered an underlying third-quarter net loss of 20m Norwegian crowns ($3.53m).
French auto parts maker Faurecia cut its full-year earnings forecast as European auto production slows.
Swedish engineering group Alfa Laval's third quarter core earnings were below market expectations. The firm expects demand in the final quarter of the year to be flat at best.
Nokia is off by 5% after saying that it will issue 750m euros in convertible bonds.
Michelin is higher after reporting better than expected third quarter profits and revenues.
From a sector stand-point the worst performance now on the DJ Stoxx 600 is to be seen in the following industrial groups: Basic resources (-1.29%), Personal and household goods (-0.86%) and Insurance (-0.86%). French business confidence falls
Italian non-EU trade deficit has come in at 596m Euros for September, versus -970m Euros in the month before.
INSEE's French business confidence indicator for the month of October has fallen to the 85 point level from 90 points in the previous month (Consensus: 90). Single currency drifts lower
The euro/dollar is now down by 0.26% to the 1.3030 dollar mark.
Front month Brent crude futures are now down by 0.82 dollars, to the 109.34 dollar mark on the ICE. | |
| US Market Report | US close: Stocks rebound but gains only slight
Market Movers
Dow Jones: 13,346 (+0.02%)
Nasdaq: 3,017 (+0.38%)
S&P 500: 1,434 (+0.06%) US stocks finished in positive territory on Monday afternoon thanks to a late rally but trading was volatile as investors showed caution ahead of a busy week on the corporate earnings front.
Industrial machines manufacturer and economic bellwether Caterpillar was the headline-grabber today. The company beat earnings forecasts in the third quarter causing shares to edge higher, however guidance was a little disappointing.
The firm estimates that full-year earnings per share (EPS) will be $9.00-9.25, down from $9.60 last year and below the current $9.40 consensus estimate.
"The general trend of the earnings season appears to be continuing today. Of the 12 companies that reported before the opening bell, 10 beat earnings expectations however only half reported higher revenue from a year earlier. With the global economy expected to deteriorate before it improves, these figures are likely to worsen in the coming quarters," said market analyst Craig Erlam from Alpari.
Coal producer Peabody Energy rose nearly 12% despite reporting a 84% fall in earnings after its full-year guidance surpassed forecasts.
Meanwhile, Monster Beverage dropped 14% after the FDA received reports of five deaths "possibly linked to" one of its products.
On the corporate earnings schedule this week are a number of big hitters, including online video rental group Netflix, social media giant Facebook, tech titan Apple and mobile phone firm AT&T.
Internet group Yahoo! finished the day lower ahead of its results due after the bell. Shares rose in after-market trade as the company reported adjusted earnings of 35 cents a shares, better than the 26 cents estimate.
S&P 500 - Risers
Peabody Energy Corp. (BTU) $28.95 +11.82%
Alpha Natural Res (ANR) $9.47 +5.57%
Netflix Inc. (NFLX) $67.88 +4.46%
International Flavors & Fragrances Inc. (IFF) $64.29 +4.21%
Apple Inc. (AAPL) $634.03 +3.97%
CONSOL Energy Inc. (CNX) $36.60 +3.95%
H&R Block Inc. (HRB) $17.74 +3.68%
United States Steel Corp. (X) $22.91 +3.43%
KLA-Tencor Corp. (KLAC) $46.94 +2.98%
TripAdvisor Inc. (TRIP) $30.70 +2.57%
S&P 500 - Fallers
Monster Beverage Corp (MNST) $45.73 -14.23%
VF Corp. (VFC) $159.46 -4.38%
Advanced Micro Devices Inc. (AMD) $2.10 -3.67%
SunTrust Banks Inc. (STI) $27.67 -3.35%
Alexion Pharmaceuticals Inc. (ALXN) $104.03 -3.34%
Coach Inc. (COH) $54.17 -3.27%
Dun & Bradstreet Corp. (DNB) $78.42 -2.99%
Amazon.Com Inc. (AMZN) $233.78 -2.59%
Ross Stores Inc. (ROST) $60.32 -2.52%
Nabors Industries Ltd. (NBR) $14.52 -2.48%
Dow Jones I.A - Risers
Hewlett-Packard Co. (HPQ) $14.71 +1.59%
Caterpillar Inc. (CAT) $85.08 +1.45%
Bank of America Corp. (BAC) $9.55 +1.17%
Alcoa Inc. (AA) $9.10 +1.00%
Intel Corp. (INTC) $21.46 +0.92%
E.I. du Pont de Nemours and Co. (DD) $49.73 +0.79%
Cisco Systems Inc. (CSCO) $18.18 +0.78%
Travelers Company Inc. (TRV) $73.99 +0.65%
International Business Machines Corp. (IBM) $194.40 +0.54%
Home Depot Inc. (HD) $62.04 +0.24%
Dow Jones I.A - Fallers
Microsoft Corp. (MSFT) $28.00 -2.23%
General Electric Co. (GE) $21.70 -1.50%
Merck & Co. Inc. (MRK) $46.46 -1.21%
Verizon Communications Inc. (VZ) $44.77 -0.86%
Pfizer Inc. (PFE) $25.59 -0.66%
Chevron Corp. (CVX) $112.73 -0.57%
JP Morgan Chase & Co. (JPM) $42.09 -0.54%
Coca-Cola Co. (KO) $37.23 -0.45%
3M Co. (MMM) $92.53 -0.44%
Boeing Co. (BA) $73.70 -0.42%
Nasdaq 100 - Risers
Netflix Inc. (NFLX) $67.88 +4.46%
Apple Inc. (AAPL) $634.03 +3.97%
KLA-Tencor Corp. (KLAC) $46.94 +2.98%
Intuitive Surgical Inc. (ISRG) $551.19 +2.39%
Randgold Resources Ltd. Ads (GOLD) $122.62 +1.72%
BMC Software Inc. (BMC) $41.02 +1.69%
PACCAR Inc. (PCAR) $41.09 +1.68%
Autodesk Inc. (ADSK) $30.95 +1.58%
Staples Inc. (SPLS) $11.40 +1.51%
Cognizant Technology Solutions Corp. (CTSH) $69.81 +1.51%
Nasdaq 100 - Fallers
Monster Beverage Corp (MNST) $45.73 -14.23%
Alexion Pharmaceuticals Inc. (ALXN) $104.03 -3.34%
Amazon.Com Inc. (AMZN) $233.78 -2.59%
Ross Stores Inc. (ROST) $60.32 -2.52%
Microsoft Corp. (MSFT) $28.00 -2.23%
Cerner Corp. (CERN) $69.18 -1.77%
CH Robinson Worldwide Inc (CHRW) $59.85 -1.44%
Marvell Technology Group Ltd. (MRVL) $7.46 -1.41%
Sandisk Corp. (SNDK) $43.43 -1.34%
Dentsply International Inc. (XRAY) $36.42 -1.33% |
| FX and Commodities round-up | FX round-up: Euro carves out gains after Spanish vote
The euro rose against major currencies on Monday after Spain's regional election results saw Prime Minister Mariano Rajoy's party retain power in Galicia.
Rajoy's election victory means that Spain is more unified and helps him push through the austerity measures the government is being asked to introduce. Ultimately the win should make it easier for Spain to ask for a bailout.
The single currency rallied to an intra-day high of $1.3084 before later trading at around $1.3046 versus $1.3025 the previous session.
Meanwhile the yen tumbled against the euro and the dollar on Monday after reports suggested that the Bank of Japan could possibly announce more easing measure at its meeting next week.
The ICE dollar index, which measures the greenback against a basket of six major currencies, stood at 79.654 from 79.628 on Friday.
Against the yen, the dollar rose to a high of ¥79.94 compared to ¥79.31 late Friday after trade data showed Japanese exports to China fell sharply last month.
Sterling bought $1.6007 from $1.5998 before and fell to a five month low against the broadly stronger euro. Commodities: Oil skids to two-week low
Crude oil futures slipped 1.5 per cent on Monday as buyers lost their nerve amid weak stock markets and persistent concern about the demand outlook.
Crude for November delivery lost $1.32 to settle at $88.73 a barrel on the New York Mercantile Exchange after trading at a low of $88.20 earlier in the session. The November contract expired at the end of Monday's session.
The new December front-month contract settled 1.8% lower at $88.65 a barrel.
US stocks settled only just in the blue on Monday, after a late surge, however trading was volatile ahead of corporate earnings later in the week.
Focus also turned to the Keystone pipeline, which was due to re-open on Monday easing fears about reduced supplies.
Most notably, concern about weak oil demand outweighed tensions in the Middle East despite Lebanon becoming the latest nation to suffer unrest after a Lebanese intelligence officer who had voiced his opposition to President Bashar al-Assad's was, along with several other civilians, killed in a huge car bombing in Beirut on Friday.
Despite fresh violence in the Middle East, fears about the weak global outlook and soft demand dominated the session.
Brent crude on the ICE Futures exchange recently fell 83 cents to $109.31 a barrel.
Among precious metals gold snapped recent declines to register decent gains as investors gear up for the Federal Reserve meeting.
Gold for December delivery rose $2.30 to settle at $1,726.30 on ounce on the Comex division of the New York Mercantile Exchange.
Silver for December delivery advanced 16 cents to settle $32.25 an ounce. |
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