London open: Stocks rise as Greece approves budget
Market Movers
- techMARK 2,074.85 -0.22%
- FTSE 100 5,776.32 +0.12%
- FTSE 250 11,851.91 +0.08%
- Greece approves 2013 budget
- Japanese GDP worse than expected
- Miners fall but Polymetal bucks the trend
UK stocks were making gains on Monday morning, rebounding after a 1.7 per cent fall the previous week, as the markets' concerns about the Greek economy eased temporarily.
Greece's parliament put the rubber stamp on its budget for 2013 late Sunday night with a wide margin as 167 deputies approved the bill, 128 voted against, four voted 'present' and one member was absent.
"Just four days ago, we voted the most sweeping reforms ever in Greece," said Prime Minister Antonis Samaras. "The sacrifices (in the earlier bill and the budget) will be the last. Provided, of course, we implement all we have legislated."
"Greece has done what it was asked to do and now is the time for the creditors to make good on their commitments," he stressed.
Passage of the budget was a requirement for Athens to get the green light on the next tranche of aid. However, the Troika is not expected to be able to give the final seal of approval necessary in time for today's meeting of Eurozone finance minsters.
In other news, Japan's economy contracted at an annualised rate of 3.5% in the third quarter, only slightly worse than the 3.4% decline expected by analysts. Nevertheless, the decline in capital expenditures was considerably larger than what was forecast. Meanwhile, Indian industrial production fell by 0.4% in September, following an increase of 2.8% the year before.
Over the weekend investors learned that Chinese exports grew at an 11.6% month-on-month pace in October, well ahead of the 10% that had been foreseen.
Elsewhere, the macroeconomic agenda is looking pretty sparse today. Economists at Lloyd's told clients this morning: "against today's lull, the data flow over the rest of the week will provide plenty of material for markets to assess the current soft patch in global activity. For the most part, we expect the data to be softer than consensus which points to further downside pressure on risk sentiment over the next week." FTSE 100: Miners under pressure
Mining stocks were broadly lower early on after the worse-than-expected contraction in Japan. Anglo American, Antofagasta, Xstrata and Kazakhmys were registering losses this morning.
Bucking the trend was Polymetal after extending the life-of-mine projections for its Khakanja and Omolon mines in Russia by two years after releasing the first set of ore reserves estimates for its Tsokol, Ozerny, Avlayakan, and Dalniy deposits.
Drugs giant AstraZeneca declined despite announcing a clutch of positive test results relating to its naloxegol product, a treatment for opioid-induced constipation (OIC).
Security giant G4S was lower after Morgan Stanley downgraded its rating on the stock to 'equal weight' and cut its target from 320p to 280p. In contrast, hotels group InterContinental gained after Exane BNP Paribas upgraded its recommendation to 'outperform' and raised its target from 1,630p to 1,900p.
FTSE 250: Cobham drops on 2013 guidance
Defence technology supplier Cobham tanked after predicting a drop in revenues in 2013 as it is hit by the fall un US defence spending. The firm also said that a change in its sales mix and new investments would mean lower operating margins next year than are expected in 2012.
Support services and construction group Interserve rose after maintaining full-year guidance after an 'in-line' second half so far.
FTSE 100 - Risers
Admiral Group (ADM) 1,080.00p +2.47%
WPP (WPP) 825.00p +2.10%
InterContinental Hotels Group (IHG) 1,581.00p +1.54%
Capital Shopping Centres Group (CSCG) 338.10p +1.14%
Associated British Foods (ABF) 1,388.00p +0.95%
SABMiller (SAB) 2,689.50p +0.92%
Burberry Group (BRBY) 1,228.00p +0.90%
United Utilities Group (UU.) 656.00p +0.85%
Schroders (SDR) 1,568.00p +0.84%
Imperial Tobacco Group (IMT) 2,454.00p +0.82%
FTSE 100 - Fallers
Xstrata (XTA) 958.70p -1.20%
Anglo American (AAL) 1,847.50p -0.99%
Croda International (CRDA) 2,250.00p -0.92%
Antofagasta (ANTO) 1,246.00p -0.88%
BG Group (BG.) 1,048.00p -0.85%
G4S (GFS) 251.50p -0.75%
Royal Bank of Scotland Group (RBS) 268.30p -0.67%
Glencore International (GLEN) 337.35p -0.62%
Barclays (BARC) 228.85p -0.56%
Rolls-Royce Holdings (RR.) 872.50p -0.51%
FTSE 250 - Risers
COLT Group SA (COLT) 105.60p +7.10%
JD Sports Fashion (JD.) 760.28p +3.44%
Interserve (IRV) 377.50p +2.83%
Ocado Group (OCDO) 59.95p +2.48%
Raven Russia Ltd (RUS) 67.25p +1.89%
Bovis Homes Group (BVS) 525.00p +1.84%
Daejan Holdings (DJAN) 2,877.87p +1.84%
Perpetual Income & Growth Inv Trust (PLI) 282.00p +1.77%
F&C Asset Management (FCAM) 103.30p +1.67%
Man Group (EMG) 82.25p +1.54%
FTSE 250 - Fallers
Cobham (COB) 196.80p -6.73%
Talvivaara Mining Company (TALV) 97.50p -5.80%
Perform Group (PER) 400.00p -4.81%
IP Group (IPO) 107.50p -2.27%
Jupiter Fund Management (JUP) 263.20p -2.27%
Bumi (BUMI) 271.00p -2.13%
Aveva Group (AVV) 1,966.00p -1.75%
Ophir Energy (OPHR) 531.00p -1.67%
Redrow (RDW) 156.30p -1.45%
UK Event Calendar Monday November 12
INTERIMS
Aveva Group, Entertainment One Ltd. (DI), Latchways, Printing.com, Wincanton
INTERIM DIVIDEND PAYMENT DATE
Travis Perkins
QUARTERLY PAYMENT DATE
Merchants Trust
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Harmonised Competitiveness Indicators (EU) (09:00)
Q3
Telecom Egypt SAE GDS (Regs)
GMS
Gold Oil
FINALS
Lonmin
IMSS
Catlin Group Ltd., Cobham, Dignity, Gem Diamonds Ltd. (DI), Interserve, Taylor Wimpey
EGMS
Queenco Leisure International Ltd. GDR (Reg S)
AGMS
JPMorgan Emerging Markets Inv Trust, Redrow
| Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Europe open: Athens approves budget, but mild doubts persist
-Banks deposited €248.5bn overnight at ECB
FTSE-100: 0.11%
Dax-30: -0.01%
Cac-40: -0.24%
FTSE Mibtel 30: -0.30%
Ibex 35: -0.50%
Stoxx 600: 0.16%
The main European equity benchmarks have begun the day in a mixed fashion. While the Greek parliament last night approved the 2013 budget by an ample majority, there are some doubts as to just when, exactly, the country will be able to access the next tranche of international financial aid. That uncertainty is weighing on markets.
However, there seem to be relatively solid indications that European authorities are looking to approve the above by the end of the month, with the country expected to be able to hold out until then. If not, then it is considered that European authorities are very likely to act.
As regards the US fiscal cliff, on this point some market commentary out over the weekend seems a tad more downbeat than what could be seen and heard in previous days. Thus, for example, economists at Barclay´s wrote on Friday that: "The retention of the status quo within the US Congress provides the most treacherous path to navigating the fiscal cliff."
Meantime, and in Asia, Chinese macroeconomic data out over the weekend was generally stronger than expected, particularly as regards export growth.
Nevertheless, the latest Japanese GDP data seems to have taken some of the luster off of the same. Telecom Italia up sharply on speculation
Egyptian billionaire Naguib Sawiris is mulling an investment of up to €4-5bn in Telecom Italia, Il Corriere della Sera reported on Saturday.
From a sector stand-point the best performers now on the DJ Stoxx 600 are: Telecommunications (0.50%), Personal and Household goods (0.43%) and Travel&Leisure (0.37%).
German wholesale prices drop
The Dutch trade balance improved to €3.6bn, versus the €2.1bn seen in the previous month.
German wholesale prices fell by 0.6% month-on-month in October (Previous: 1.3%). Single currency near recent lows
The euro/dollar is now flat at 1.2710 dollars.
Front month Brent crude futures are now down by 0.339 dollars to the 109.03 dollar level on the ICE. |
| US Market Report | US close: Stocks edge higher after confidence data
Market movers
Dow Jones: 12,815 (+0.03%)
Nasdaq: 2,905 (+0.33%)
S&P 500: 1,380 (+0.18%) US stocks ended Friday's session slightly higher but finished the week around two per cent down, as ongoing concerns about the 'fiscal cliff' and the Eurozone continued to cloud the outlook for the global economy.
Nevertheless, despite the Dow Jones Industrial Average and S&P 500 experiencing their worst weekly performances since June, stocks on the whole rose after a key gauge of consumer confidence smashed expectations.
The University of Michigan consumer confidence index increased from 82.6 to 84.9 points in November, marking the highest level since July of 2007 when the S&P 500 hit its all-time high. Analysts were looking for a slight rise to just 83 points.
Even so, 'fiscal cliff' worries continue to weigh on sentiment in Stateside. The Congressional Budget Office said yesterday that the 'cliff' concerns could trigger a fall of 0.5% in real gross domestic product in 2013. In turn, the jobless rate could be pushed back up to 9.1%.
In company news, fashion retailer JC Penney dropped nearly 5% after announcing a larger-than-forecast third-quarter loss. This was the third consecutive quarter of worse-than-expected losses.
Shares of Groupon plummeted after the voucher website unveiled disappointing sales figures.
Network equipment maker Cisco Systems was off following a downgrade by JP Morgan.
Priceline.com fell after announcing plans to acquire Kayak Software for $1.8bn in cash and stock. Kazak surged nearly 30%.
Deutsche Bank added Walt Disney to its short-term buy list but shares fell after sales missed estimates after the closing bell the night before.
S&P 500 - Risers
International Game Technology (IGT) $13.50 +5.22%
Covidien Plc (COV) $55.59 +4.18%
Cliffs Natural Resources Inc. (CLF) $36.44 +3.35%
Boeing Co. (BA) $73.25 +3.20%
Gannett Co. Inc. (GCI) $17.11 +2.89%
Public Storage (PSA) $145.70 +2.66%
Netflix Inc. (NFLX) $77.90 +2.54%
Advanced Micro Devices Inc. (AMD) $2.03 +2.53%
American International Group Inc. (AIG) $32.17 +2.42%
Alexion Pharmaceuticals Inc. (ALXN) $90.80 +2.38%
S&P 500 - Fallers
Walt Disney Co. (DIS) $47.06 -5.96%
J.C. Penney Co. Inc. (JCP) $20.64 -4.84%
Microchip Technology Inc. (MCHP) $30.62 -4.04%
Nvidia Corp. (NVDA) $12.19 -3.86%
Ameren Corp. (AEE) $30.36 -3.62%
Apollo Group Inc. (APOL) $18.75 -3.30%
PulteGroup Inc. (PHM) $16.80 -3.28%
Phillips 66 Common Stock (PSX) $47.41 -3.24%
Hess Corp. (HES) $50.73 -2.82%
Express Scripts Holding Co (ESRX) $53.35 -2.66%
Dow Jones I.A - Risers
Boeing Co. (BA) $73.25 +3.20%
Caterpillar Inc. (CAT) $84.95 +1.54%
AT&T Inc. (T) $33.54 +1.02%
JP Morgan Chase & Co. (JPM) $40.62 +0.54%
General Electric Co. (GE) $21.00 +0.53%
American Express Co. (AXP) $55.83 +0.49%
Alcoa Inc. (AA) $8.43 +0.48%
Merck & Co. Inc. (MRK) $44.05 +0.47%
Bank of America Corp. (BAC) $9.43 +0.43%
Johnson & Johnson (JNJ) $69.87 +0.32%
Dow Jones I.A - Fallers
Walt Disney Co. (DIS) $47.06 -5.96%
Hewlett-Packard Co. (HPQ) $13.61 -1.52%
McDonald's Corp. (MCD) $84.74 -0.46%
United Technologies Corp. (UTX) $75.84 -0.42%
Mondelez International Inc. (MDLZ) $26.02 -0.34%
International Business Machines Corp. (IBM) $189.64 -0.24%
Wal-Mart Stores Inc. (WMT) $72.31 -0.23%
Coca-Cola Co. (KO) $36.29 -0.19%
Intel Corp. (INTC) $20.80 -0.14%
Cisco Systems Inc. (CSCO) $16.82 -0.06%
Nasdaq 100 - Risers
Research in Motion Ltd. (RIMM) $8.54 +4.15%
Sirius Satellite Radio Inc. (SIRI) $2.75 +3.00%
Netflix Inc. (NFLX) $77.90 +2.54%
Alexion Pharmaceuticals Inc. (ALXN) $90.80 +2.38%
Monster Beverage Corp (MNST) $45.26 +1.94%
Warner Chilcott Plc (WCRX) $11.67 +1.83%
Biogen Idec Inc. (BIIB) $138.05 +1.80%
Dentsply International Inc. (XRAY) $38.68 +1.79%
Apple Inc. (AAPL) $547.06 +1.73%
Garmin Ltd. (GRMN) $37.01 +1.65%
Nasdaq 100 - Fallers
Microchip Technology Inc. (MCHP) $30.62 -4.04%
Nvidia Corp. (NVDA) $12.19 -3.86%
Apollo Group Inc. (APOL) $18.75 -3.30%
Activision Blizzard Inc. (ATVI) $10.66 -3.09%
Express Scripts Holding Co (ESRX) $53.35 -2.66%
Randgold Resources Ltd. Ads (GOLD) $112.34 -2.31%
Seagate Technology Plc (STX) $29.06 -1.86%
Akamai Technologies Inc. (AKAM) $36.40 -1.81%
Nuance Communications Inc. (NUAN) $21.15 -1.27%
Bed Bath & Beyond Inc. (BBBY) $57.08 -1.25% |
| FX and Commodities round-up | FX round-up: Fiscal cliff worries increase dollar interest
Jitters about the US fiscal cliff fuelled demand for the safe haven dollar on Friday while the euro came under pressure on concern about the future growth outlook.
The dollar index, which measures the US currency against a basket of six others, climbed to 81.045 from 80.808 on Thursday.
The euro changed hands at $1.2714 from $1.2746 the previous session after the latest report from the Economy Ministry proved grim reading. It said growth in Germany, Europe's biggest economy, is expected to slow in the fourth quarter and during the first quarter of 2013.
Meanwhile industrial production in France, Europe's second biggest economy, reduced last month.
Also, ongoing uncertainty about Greece's long awaited tranche of aid fuelled market nerves on Friday.
Against the yen, the greenback bought ¥79.52 compared to ¥79.43 on Thursday as traders mulled data that showed Japan's economy is shrinking. Japan reported dismal trade figures for September amid the strong yen, the country's ongoing territorial dispute with Beijing and the debt crisis in Europe.
Sterling changed hands at $1.5902 from $1.5984 before after the Bank of England kept interest rates and the size of its bond-buying programme unchanged on Thursday. Commodities: Crude scores 1 per cent weekly gain
Encouraging data from the US and China sent crude oil futures above 86 dollars a barrel on Friday on hopes that global demand will be buoyed.
Crude for December delivery gained 98 cents, or 1.2%, to settle at $86.07 a barrel on the New York Mercantile Exchange. Over the week, crude futures logged a 1.4% increase.
The University of Michigan's latest consumer confidence index boosted market confidence and also gave US equities a lift. The index increased to a better than expected 84.9 points in November from 82.6 the month before. Analysts were predicting a slight rise to 83 points.
Meanwhile Chinese data showed the nation's economic recovery was gaining pace.
However ongoing concerns about the 'fiscal cliff' and the Eurozone kept crude gains in check.
Crude for December delivery gained 98 cents, or 1.2%, to settle at $86.07 a barrel on the New York Mercantile Exchange. Over the week, crude futures logged a 1.4% increase.
It was gasoline futures that led the day's biggest gains after reports of squeezed supplies following hurricane Sandy. Gasoline for December delivery advanced 9.19 cents or 3.5% to settle at $2.699 a gallon on Friday.
Over on the ICE futures exchange Brent futures settled at $2.15 per barrel to settle at $109.40.
Among precious metals gold marked a weekly gain of over 3% and rose 0.3% on Friday on hopes of stronger demand from China and India.
Gold for December delivery climbed $4.90 to settle at $1,730.90 an ounce on the Comex division of the New York Mercantile Exchange.
Bullion logged its first weekly gain in five on jitters about the US fiscal cliff and ongoing Eurozone worries.
Silver for December delivery added 36 cents to settle at $32.60 an ounce and for the week logged a 5.7% increase. |
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