London open: Stocks drop as Greece given more time
Market Movers
- techMARK 2,050.92 -0.54%
- FTSE 100 5,728.84 -0.67%
- FTSE 250 11,756.28 -0.40%
Concerns about Greece continued to weigh on sentiment on Tuesday morning, causing the FTSE 100 index to fall sharply in early trading.
Meanwhile, there was news that China is "actively studying" the expansion of the property tax programme on concerns that transaction volumes and home prices could increase "substantially", according to the Minister of Housing and Urban-Rural Development, Jiang Weixin.
Eurozone finance ministers announced that they would grant Greece a two-year extension to get its fiscal house in order, but stopped short of giving the go-ahead on the €31.5bn tranche. Eurogroup Chairman Jean-Claude Juncker boldly stated that Athens's deadline to bring debt down to 120% of gross domestic product by 2020 would be extended to 2022.
"Although EU finance ministers agreed to give Greece two additional years until budget and deficit targets have to be met, there has no progress been made what the main sticking point is concerned which is how to raise the extra funds needed resulting from giving Greece more time," said Markus Huber, the head of German HNW trading at ETX Capital.
However International Monetary Fund (IMF) Managing Director Christine Lagarde openly showed her disapproval and said that the two organisations obviously had "different views" on the timetable that the Hellenic Republic needs to complete.
A number of economic indicators across Europe are scheduled for release later this morning: the UK consumer price index; the UK retail price index; and the German ZEW index, which is expected to increase from -11.5 to -10.0 in November. Meanwhile, Italy is expected to sell €6.5bn of short-term debt today.
"Overall sentiment is clearly negative today, there is also plenty of uncertainty remaining regarding the US and the 'Fiscal Cliff' too and it shouldn't be much of a surprise if last week's lows would be put to test early on," Huber said. FTSE 100: ITV jumps after half-year report
Net advertising revenue (NAR) at ITV fell in the third quarter, but not as much as the rest of the market, the broadcaster said. The company took a hit from the Olympics and Paralympics, which were shown on the BBC. Shares surged by over 5% in the opening hour.
Telecoms giant Vodafone fell after plunging into the red after being hit by a huge £5.9bn impairment charge during the half year ended September 30th, related to its operations in Spain and Italy.
Continuing delays on Anglo American's Minas-Rio iron ore project in Brazil are likely to push up the cost of the project more than the market had been expecting, causing shares to tank early on.
Building materials giant CRH rose despite scaling back its earnings forecast this year on the back of ongoing weakness in Europe and Hurricane Sandy disrupting its operations in eastern America.
Outsourcing giant Capita gained after saying it is confident it will deliver 3% organic growth for the year and an improved cash conversion rate for 2012 as compared to 2011.
FTSE 250: De La Rue drops as paper volumes fall
Bank note printer De La Rue fell sharply after saying that while banknote print volumes were up 4.0% to 2.9bn notes in the six months ended September 29th, banknote paper volumes declined 15% to 4,500 tonnes.
Salamander Energy tanked after announcing it has abandoned a well off the coast of Thailand after concluding it wasn't good enough to be commercialised.
House builder Persimmon fell after saying that the UK housing market continues to be challenging and mortgage availability remains the key constraint; however it is still confident about future growth.
Afren, the energy firm focused on Africa and the Middle East, has seen revenue smash through the billion dollar in the first nine months of the year, but shares fell.
Petra Diamonds rose after reporting a 188% increase in first-quarter revenue and saying that lost production due to "challenging labour relations" in the South African mining industry will to some extent be made up during the coming months.
Nickel miner Talvivaara continues to be hit by concerns about its operations in Finland which have been affect by an "unfortunate gypsum pond leakage" that started last week.
| UK Event Calendar | | Tuesday November 13
INTERIMS
Hibu, HML Holdings, Norcros, Oxford Instruments, Synergy Health, TalkTalk Telecom Group , Trifast, Vodafone Group, Workspace Group
QUARTERLY EX-DIVIDEND DATE
Lilly (Eli) & Co
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
ABC Consumer Confidence (US) (22:00)
Treasury Budget Statement (US) (19:00)
ZEW Survey (EU) (10:00)
ZEW Survey (GER) (10:00)
Q3
Arnoldo Mondadori Editore SPA, Bank Pekao SA GDS (Reg S)
GMS
Creat Resources Holdings Ltd. (DI)
IMSS
Afren, Cineworld Group, CRH, Drax Group, Persimmon
AGMS
Crown Place VCT, Global Petroleum Ltd., Wolf Minerals Limited
UK ECONOMIC ANNOUNCEMENTS
Consumer Price Index (09:30)
Producer Price Index (09:30)
Retail Price Index (09:30) | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | | The French market is in negative territory on Tuesday, after uncertainty prevailed over Greece, with the eurogroup and the International Monetary Fund failing to reach an agreement on the bailout at yesterday's meeting in Brussels.
Jean-Claude Juncker, the head of Eurogroup, said Euro area finance ministers would hold an extraordinary meeting again on November 20 to finalize the payment of the next tranche of Greek aid.
Finance ministers granted Greece two extra years to meet its budget targets, although they indicated that they would hold more negotiations before nailing down a new deal. The additional time would leave a funding hole of around 32.6 billion euros through 2016.
It is now unclear whether the International Monetary Fund will take part in the contribution as IMF Chief Christine Lagarde said she did not agree with Juncker. Lagarde said the appropriate timetable to reduce Greece debt to 120 percent is by 2020.
Germany's economic confidence declined unexpectedly by 4.2 points to -15.7 points in November, survey data from the Centre for European Economic Research showed. The expected reading for November was -10.
U.K. annual inflation accelerated more than expected to 2.7 percent in October, from 2.2 percent in September, the Office for National Statistics said. Inflation was forecast to rise to 2.4 percent.
The Euro Stoxx 50 index of eurozone bluechip stocks is falling 0.90 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is dropping 0.72 percent.
The CAC 40 index is currently losing 0.9 percent.
Alcatel Lucent is declining 4.4 percent, followed by GDF Suez, which is dropping 2.9 percent.
Sanofi is losing 1.8 percent. Insurer Axa and carmaker Renault are falling 1.7 percent each.
Carrefour is falling 1.6 percent and Michelin is sliding 1.2 percent.
Elsewhere in Europe, the German DAX and the UK's FTSE 100 are losing around 0.8 percent each. Switzerland's SMI is dropping 0.4 percent.
Across Asia/Pacific, markets ended firmly in the red. Australia's All Ordinaries and China's Shanghai Composite Index fell 1.5 percent each, while Hong Kong's Hang Seng index retreated 1.1 percent. Japan's Nikkei 225 index ended down 0.2 percent.
In the U.S., futures point to a lower open on Wall Street. In the previous session, the major averages ended the day nearly flat, as many traders were away from their desks amid the Veteran's Day holiday, and continued uncertainty about the looming fiscal cliff kept many others on the sidelines. While the S&P 500 inched up 0.01 percent, the Dow was flat and the Nasdaq edged down 0.02 percent.
In the commodity space, crude for December delivery is losing $0.56 to $85.01 per barrel and December gold is falling $5.4 to $1725.5 a troy ounce. |
| US Market Report | US close: Stocks tread water
Market movers
Dow Jones Industrial: -0 at 12,815
S&P 500: +0 at 1,380
NASDAQ Composite: -0 at 2,904 All three of the major US equity benchmarks ended the day more or less unchanged as investors awaited the outcome of the meeting of Eurozone Finance ministers, where the Greek crisis was sure to be high on the agenda.
Today is Veterans Day in the US, which will also have had an impact on trading levels. M&A in focus
Although company results announcements were thin on the ground, mergers and acquisitions (M&A) news provided some trading opportunities.
Paints retailer Sherwin Williams will buy Mexican paints maker Comex for $2.34bn, in a cash deal it will fund through bond issues, while in a deal announced over the week-end, castings maker Precision Castparts is to purchase Titanium Metals, the titanium producer, for $2.9bn.
Elsewhere, Leucadia National, which already holds about 28.6% of New York-based Jefferies, will acquire the rest of the broker for $2.76bn.
Biotechnology outfit Gilead Sciences was boosted by promising results for one of its experimental drugs against Hepatitis C.
Software titan Microsoft was the biggest faller among Dow Jones constituents, even as sales of its "Halo 4" game raked in more than $220m within 24 hours of going on sale. The previous instalment in the first person shooter franchise took $300m in sales in the first week of release and the latest iteration looks set to smash that record, although it faces competition from Activision Blizzard's own first person shooter, "Call of Duty", which goes on sale on Tuesday.
Chip equipment maker KLA Tencor was wanted after analysts at RBS upgraded their view on the company´s shares to "outperform" from "underperform".
JP Morgan on the other hand has cuts its view on shares of heavy-equipment manufacturer Caterpillar to "neutral".
Bond markets closed
Bond markets were closed in observance of Veterans Day in the US, but the futures markets were trading. West Texas sweet light crude for December delivery fell 50 cents to $85.57 a barrel on the New York Mercantile Exchange.
S&P 500 - Risers
Titanium Metals Corp. (TIE) $16.50 +42.61%
Gilead Sciences Inc. (GILD) $73.93 +13.72%
Sherwin-Williams Co. (SHW) $149.06 +5.84%
Celgene Corp. (CELG) $75.66 +5.82%
Allegheny Technologies Inc. (ATI) $28.29 +5.68%
Precision Castparts Corp. (PCP) $179.69 +4.88%
GameStop Corp. (GME) $23.09 +4.43%
VF Corp. (VFC) $159.68 +4.41%
Best Buy Co. Inc. (BBY) $15.85 +3.59%
VeriSign Inc. (VRSN) $42.97 +3.59%
S&P 500 - Fallers
J.C. Penney Co. Inc. (JCP) $17.97 -12.94%
D. R. Horton Inc. (DHI) $19.40 -5.83%
Lennar Corp. Class A (LEN) $36.38 -4.54%
Seagate Technology Plc (STX) $28.05 -3.49%
PulteGroup Inc. (PHM) $16.25 -3.27%
Leucadia National Corp. (LUK) $21.14 -3.03%
Express Scripts Holding Co (ESRX) $51.92 -2.68%
R.R. Donnelley & Sons Co. (RRD) $9.17 -2.65%
International Game Technology (IGT) $13.18 -2.37%
Nvidia Corp. (NVDA) $11.91 -2.26%
Dow Jones I.A - Risers
United Technologies Corp. (UTX) $76.95 +1.46%
AT&T Inc. (T) $33.87 +0.98%
Walt Disney Co. (DIS) $47.45 +0.83%
Boeing Co. (BA) $73.69 +0.60%
3M Co. (MMM) $89.18 +0.42%
Home Depot Inc. (HD) $61.16 +0.33%
Caterpillar Inc. (CAT) $85.18 +0.27%
Wal-Mart Stores Inc. (WMT) $72.48 +0.24%
Cisco Systems Inc. (CSCO) $16.85 +0.21%
McDonald's Corp. (MCD) $84.88 +0.17%
Dow Jones I.A - Fallers
Microsoft Corp. (MSFT) $28.22 -2.12%
Hewlett-Packard Co. (HPQ) $13.41 -1.47%
Travelers Company Inc. (TRV) $68.43 -0.80%
Coca-Cola Co. (KO) $36.08 -0.58%
American Express Co. (AXP) $55.52 -0.56%
General Electric Co. (GE) $20.89 -0.52%
E.I. du Pont de Nemours and Co. (DD) $43.13 -0.48%
Bank of America Corp. (BAC) $9.39 -0.42%
Johnson & Johnson (JNJ) $69.68 -0.27%
Pfizer Inc. (PFE) $24.11 -0.25%
Nasdaq 100 - Risers
Gilead Sciences Inc. (GILD) $73.93 +13.72%
Celgene Corp. (CELG) $75.66 +5.82%
Green Mountain Coffee Roasters Inc. (GMCR) $24.83 +4.28%
VeriSign Inc. (VRSN) $42.97 +3.59%
Research in Motion Ltd. (RIMM) $8.81 +3.16%
KLA-Tencor Corp. (KLAC) $47.60 +2.94%
Apollo Group Inc. (APOL) $19.25 +2.64%
Yahoo! Inc. (YHOO) $17.51 +1.45%
Alexion Pharmaceuticals Inc. (ALXN) $91.98 +1.30%
Priceline.Com Inc. (PCLN) $633.43 +1.21%
Nasdaq 100 - Fallers
Seagate Technology Plc (STX) $28.05 -3.49%
Randgold Resources Ltd. Ads (GOLD) $109.29 -2.71%
Express Scripts Holding Co (ESRX) $51.92 -2.68%
Nvidia Corp. (NVDA) $11.91 -2.26%
Vertex Pharmaceuticals Inc. (VRTX) $44.00 -2.24%
Microsoft Corp. (MSFT) $28.22 -2.12%
F5 Networks Inc. (FFIV) $86.14 -2.04%
Cerner Corp. (CERN) $77.02 -2.00%
NetApp Inc. (NTAP) $26.82 -1.92% |
| FX and Commodities round-up | FX round-up: Euro at two-month low against dollar
The euro traded at a two-month low against the dollar on Monday, in thinner than usual holiday trading, as markets fretted about Greece's bailout programme.
US bond markets and banks were closed in Monday for the Veterans Day holiday.
The single currency fell to $1.2710, little changed from a two-month low of $1.2688 on Friday, as Greece's international creditors failed to agree on the country's bailout programme despite the Greek government approving a tough 2013 budget.
Uncertainty about whether Greece will receive a fresh round of bailout funds, to avoid a default on its loans, kept pressure on the euro and fuelled mild safe haven flows.
The dollar index, which measures the greenback against a basket of six major currencies, rose to 81.052 from 81.044 on Friday, helped by concerns about the US fiscal cliff.
Against the yen, the dollar changed hands at ¥79.48 compared to ¥79.52 on Friday after data showed the Japanese economy contracted more than expected in the last quarter as the strong yen and ongoing territorial dispute with China takes its toll on the country's exports. The euro hardly moved against the Japanese currency at ¥101.06.
Sterling bought $1.5877 on Monday compared to $1.5901 on Friday after the Bank of England kept interest rates and its bond-buying programme unchanged. Commodities: Oil slips on flush US stockpiles
Crude oil futures fell on Monday after a key energy report highlighted surplus supplies in the US.
The International Energy Agency said the US would replace Saudi Arabia as the world's biggest oil producer by 2020 because of the surge in shale-oil. The EIA added that by 2030, the US could become a net oil exporter.
The report underlined surplus oil stockpiles in the US as output soars and demand weakens. The report said US oil output has risen 7% to 10.8m barrels each day in the last year. However demand remains weak amid high US unemployment and increasingly fuel -efficient vehicles.
Significantly increased US oil output also means less imports from oil rich nations. Oil prices on Monday were little moved by news of increased tensions between Syria and Israel.
Crude for December delivery settled down 50 cents at $85.57 a barrel on the New York Mercantile Exchange.
Economic data also dominated market play as figures showed that Japan's economy contracted sharply in the last quarter, raising fears of recession. In contrast, China's export growth climbed to a five-month high, beating expectations.
Investors also kept a close eye on developments in the Eurozone as Greece's international creditors failed to agree on how to put the nation's bailout programme back on track.
Meanwhile on the ICE futures exchange Brent crude lost fell 41 cents to trade at $108.99 a barrel.
Among precious metals gold prices were little moved on Monday as traders weighed up stronger demand from India and China against ongoing uncertainty about the Eurozone and the upcoming fiscal cliff in the US.
Gold for December delivery settled unchanged at $1,730.90 an ounce on the Comex division of the New York Mercantile Exchange.
Silver for December delivery dropped 8 cents to settle at $32.52 an ounce while December copper added 2 cents to $3.47 a pound. |
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