London open: Stocks fall ahead of key US jobs data
Market Movers
- techMARK 2,105.42 -0.23%
- FTSE 100 5,852.66 -0.16%
- FTSE 250 12,104.81 +0.11%
The FTSE 100 opened slightly lower on Friday morning following a strong rise the day before, as investors showed caution ahead of some pivotal economic data due out across the Pond later today.
Financial trader Shavaz Dhalla from Spreadex said that investors are nervous about taking on too much risk ahead of the "market-moving US non-farm report" due out at 13:30 London time.
Dhalla said: "The current US president as well as candidate for the presidential position will also be keenly eyeing the jobs figure. The consensus for the change in the number of employed people is 123,000.
"However, a figure which comes in below expectations will not only prove damaging for investors' confidence in the global recovery but could act as sufficient ammunition for the leading presidential candidate to launch an offensive on the failures of the current US president's measures to stimulate growth." FTSE 100: Admiral and Meggitt disappoint with Q3 results; RBS subdued
Car insurance firm Admiral dropped after seeing a 2% decrease in third-quarter turnover. "Little has changed since the half year. The UK car insurance market is cyclical and we are in the softer part of the cycle with premium rates coming down," said Chief Executive Henry Engelhardt.
Aerospace, defence and energy components group Meggitt was unwanted after saying that organic revenues were flat year-on-year and revenue growth will be in the mid-single digits in 2013.
Banking giant RBS was little changed after reporting a statutory loss before tax of £1.26bn for the three months to September 30th after taking a £1.46bn charge in own-credit adjustments and a £400m bill for PPI redress. Investec maintained its 'sell' rating for the stock this morning, saying that it had expected a loss of £1.0bn.
Oil giant Tullow was a high riser after JPMorgan Cazenove upgraded its stance on the shares to 'overweight'. In contrast, engineering giant Weir was under the weather after Jefferies cut its rating to 'hold' and supermarket group Morrisons fell after Morgan Stanley downgraded the stock to 'underweight'.
FTSE 250: Bumi gained on appointment of Rothschild Group
Mining group Bumi advanced after saying it has appointed Rothschild Goup as its financial adviser with immediate effect to evaluate the proposal received from Long Haul Holdings.
Hotels group Millennium & Copthorne fell despite seeing RevPAR rise 2.6% in the third quarter, with London enjoying an Olympic boost.
Hikma Pharmaceuticals dropped after saying that it has opted to halt commercial production of generic drugs at Eatontown facility in the US until mid-January while it gets to grips with compliance issues raised by the Food & Drug Administration (FDA).
Bwin.party digital entertainment, the world's largest listed online gaming company, fell after seeing revenues slip in the third quarter with several factors to blame, including a better regulation and the weak economic environment in Europe.
FTSE 100 - Risers
Aberdeen Asset Management (ADN) 341.90p +2.06%
Tullow Oil (TLW) 1,430.00p +1.63%
Schroders (SDR) 1,573.00p +1.35%
International Consolidated Airlines Group SA (CDI) (IAG) 165.40p +1.29%
IMI (IMI) 988.00p +1.13%
Rio Tinto (RIO) 3,199.00p +1.06%
Land Securities Group (LAND) 818.50p +0.92%
Burberry Group (BRBY) 1,225.00p +0.82%
CRH (CRH) 1,184.00p +0.77%
BHP Billiton (BLT) 2,023.50p +0.72%
FTSE 100 - Fallers
Admiral Group (ADM) 1,084.00p -5.08%
Pennon Group (PNN) 704.00p -1.88%
Croda International (CRDA) 2,137.00p -1.61%
GlaxoSmithKline (GSK) 1,366.00p -1.55%
Weir Group (WEIR) 1,768.00p -1.45%
Morrison (Wm) Supermarkets (MRW) 263.80p -1.38%
Royal Bank of Scotland Group (RBS) 283.90p -1.15%
Marks & Spencer Group (MKS) 391.40p -1.11%
National Grid (NG.) 704.50p -0.91%
Standard Life (SL.) 297.70p -0.90%
FTSE 250 - Risers
Bumi (BUMI) 267.00p +7.53%
Perform Group (PER) 410.00p +4.06%
Dixons Retail (DXNS) 24.23p +3.64%
Chemring Group (CHG) 268.60p +3.07%
New World Resources A Shares (NWR) 268.90p +2.67%
Ferrexpo (FXPO) 225.50p +2.59%
BBA Aviation (BBA) 208.90p +2.55%
Carpetright (CPR) 716.00p +2.51%
Daejan Holdings (DJAN) 2,925.00p +2.45%
COLT Group SA (COLT) 111.40p +2.20%
FTSE 250 - Fallers
Hikma Pharmaceuticals (HIK) 726.50p -3.65%
Centamin (DI) (CEY) 64.95p -3.20%
Millennium & Copthorne Hotels (MLC) 501.00p -2.05%
Balfour Beatty (BBY) 314.40p -2.00%
Computacenter (CCC) 362.00p -1.44%
Halfords Group (HFD) 352.10p -1.32%
Cable & Wireless Communications (CWC) 37.51p -1.29%
Telecom Plus (TEP) 840.00p -1.23%
WH Smith (SMWH) 625.50p -1.11%
UK Event Calendar
| Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Europe open: Investors waiting on critical employment report
-Investors waiting on US employment report
FTSE-100: -0.12%
Dax-30: -0.18%
Cac-40: -0.31%
FTSE Mibtel 30: -0.52%
Ibex 35: -0.48%
Stoxx 600: -0.03%
European equities have started the day slightly lower, as traders pull in their horns –especially following yesterday´s gains- and ahead of the release, this afternoon, of the latest monthly employment report Stateside.
For some any effect from Sandy will only show up in next month´s data, so by itself that should not be a factor in next week´s Presidential elections. However, the bad weather –should it persist- could yet play a role. In any case, today´s data is the last before Americans head to the polls, so even more is in play today than usual.
Acting as a backdrop, some reports are calling attention to the recent improvement in the Baltic Dry Freight index, usually a good indicator for global commerce and growth.
Also of interest, in today´s Financial Times James Mackintosh tells readers that recent market moves –rises led by cyclicals- show that there is quite some optimism as regards economic growth. In his opinion, however, that is only justified if one believes that central banks have more ammunition left in their armouries –or not- as Governor King has recently suggested.
Other considerations to be taken into account by the shortest-term investors and traders are that the last two months of the year are usually amongst the best for equities and the still relatively ´bearish´ sentiment of small investors, according to the latest weekly survey data out from AAII.
Alcatel burns a hole in investors´ pockets
Alcatel Lucent is now the worst performer on the Stoxx 600, following its latest results. The company has burned through half a billion euros in cash during the latest reporting period.
Deutsche Telekom is considering slashing its dividend by up to a third from 2013 onwards, German business daily Handelsblatt has reported.
Beiersdorf, the maker of Nivea, has increased its revenue outlook for the year.
The best performance in the DJ Stoxx 600 is now to be seen in the following industrial groups: personal and household goods (0.59%), automobiles (0.53%) and basic resources (0.48%).
Eurozone PMI slightly ahead of forecasts
The Markit Eurozone purchasing managers index for the month of October
has come in 45.4, versus last month´s reading of 46.1 (Consensus: 45.3).
The Markit German purchasing managers index for the month of October
has come in 46, versus last month´s reading of 47.4 (Consensus: 45.7).
The Markit French purchasing managers index for the month of October
has come in 43.7, versus last month´s reading of 42.7 (Consensus: 43.5). Single currency dropping towards technical support ahead of data
The euro/dollar is now down by 0.53% to the 1.2878 dollar level.
Front month Brent crude futures are off by 0.399 dollars to the 107.74 dollar mark in ICE trading. |
| US Market Report | US close: Stocks rise on positive economic indicators
Dow 13,233 +137
Nasdaq 3,020 +43
S&P 500 1,428 +16 US stocks moved firmly on Thursday, getting November off to a positive start following a set of broadly positive economic indicators ahead of Friday's monthly employment report.
As an aside, and as regards the impact of Sandy, Credit Suisse today told clients that: "While the event is certainly traumatic for those living through it, we think the overall impact on economic activity is likely to be small. After Katrina, which was a much bigger disaster, the stock market actually rose by 2% in the two weeks after the event. US reinsurers have typically outperformed in the 12-month period after major natural disasters on the back of improvements in pricing - however, given that natural catastrophe losses overall this year have been mild, this might not happen this time."
All of the above ahead of tomorrow´s all important monthly employment report. Ironically, if Sandy does have an effect on the recollection of data for the same it should not be evident until the following month -and after the elections- some are saying.
The October ISM manufacturing sector purchasing managers index (PMI) came in at 51.7 points, versus the 51 expected by the consensus. The new orders sub-index rose to 54.2 from 52.3. Even so, the Chair of the relevant survey Committee, Bradley J.Holcomb, has said that the rise seen in new orders is deceitful.
The Conference Board´s consumer confidence index for October came in at 72.2, below the 73 forecast. However, the previous month´s estimate has been revised down to 68.4 from 70.3. Also worth noting was that the bulk of the rise came from the current situation sub-index, which is a moderately negative aspect of the report.
The ADP employment report showed 158,000 jobs were created in October (Consensus: 135,000).
Markit´s US manufacturing sector purchasing managers´ index (PMI) came in at 51 for October, after 51.3 for the month before (Consensus: 51.3). This release is not to be confused with the much better known PMI from the Institute for Supply Management (PMI). Company news
Netflix, the video-streaming and film rental group, settled back down after Wednesday's announcment that a 10% stake in the company had been purchased by Carl Icahn.
Costco shares were also lower despite the retailer saying its same store sales had risen 7% and its monthly sales were up 9% on the previous year.
Meanwhile, Abercrombie & Fitch shares leapt after Cowen and Co gave an outperform rating on the stock.
Following Hurrica Sandy, the home improvement sector is expected to benefit as homeowners make repairs to their damanged properties, sending shares in Masco Corp. almost 7% higher.
The best performing sectors were: Coal (4.97%), Iron&Steel (4.89%) and Non-ferrous metals: (4.26%).
And the data storm continued...
Unemployment claims fell by 9,000 to 363,000 (Consensus: 370,000). Nevertheless, and as a possible note of caution, data from New Jersey and Washington DC had to be estimated due to Sandy.
The number of job cut announcements reached 47,724 in October, versus 33,800 for the month before, according to consultancy Challenger.
Unit labour costs dropped by 0.1% in the third quarter (Consensus: 0.8%).
Construction spending increased by 0.6% month-on-month (Consensus: 0.7%) in September, while the previous month´s reading has been revised notably higher.
Notable rise in crude futures as well
Front month West Texas crude futures settled 0.99% higher at $87.09 on the NYMEX.
10-year US Treasuries were falling by 10/32 dollars, with yields at 1.73% at the close.
S&P 500 - Risers
VeriSign Inc. (VRSN) $41.15 +11.01%
Abercrombie & Fitch Co. (ANF) $33.23 +8.67%
JDS Uniphase Corp. (JDSU) $10.45 +7.79%
Fossil Inc. (FOSL) $93.88 +7.78%
Tenet Healthcare Corp. (THC) $25.40 +7.63%
Masco Corp. (MAS) $16.13 +6.89%
Micron Technology Inc. (MU) $5.78 +6.64%
Macy's Inc. (M) $40.52 +6.44%
Sandisk Corp. (SNDK) $44.16 +5.70%
United States Steel Corp. (X) $21.55 +5.69%
S&P 500 - Fallers
Teradata Corp. (TDC) $63.75 -6.68%
Ross Stores Inc. (ROST) $57.13 -6.27%
Exelon Corp. (EXC) $33.58 -6.15%
Tesoro Corp. (TSO) $36.18 -4.06%
Williams Companies Inc. (WMB) $33.69 -3.72%
Western Union Co. (WU) $12.27 -3.61%
TripAdvisor Inc. (TRIP) $29.41 -2.91%
Public Service Enterprise Group Inc. (PEG) $31.14 -2.81%
Plum Creek Timber Co. (PCL) $42.79 -2.53%
Newmont Mining Corp. (NEM) $53.22 -2.49%
Dow Jones I.A - Risers
Bank of America Corp. (BAC) $9.74 +4.51%
Microsoft Corp. (MSFT) $29.51 +3.42%
Caterpillar Inc. (CAT) $87.65 +3.35%
Intel Corp. (INTC) $22.26 +2.91%
JP Morgan Chase & Co. (JPM) $42.84 +2.78%
Alcoa Inc. (AA) $8.75 +2.10%
Cisco Systems Inc. (CSCO) $17.50 +2.10%
3M Co. (MMM) $89.25 +1.88%
American Express Co. (AXP) $56.85 +1.57%
AT&T Inc. (T) $35.09 +1.45%
Dow Jones I.A - Fallers
Wal-Mart Stores Inc. (WMT) $73.45 -2.09%
Pfizer Inc. (PFE) $24.55 -1.29%
Travelers Company Inc. (TRV) $70.23 -1.00%
McDonald's Corp. (MCD) $86.80 -0.00%
Nasdaq 100 - Risers
VeriSign Inc. (VRSN) $41.15 +11.01%
Research in Motion Ltd. (RIMM) $8.70 +9.78%
Green Mountain Coffee Roasters Inc. (GMCR) $26.34 +8.95%
Fossil Inc. (FOSL) $93.88 +7.78%
Micron Technology Inc. (MU) $5.78 +6.64%
Sandisk Corp. (SNDK) $44.16 +5.70%
Electronic Arts Inc. (EA) $13.00 +5.26%
Nvidia Corp. (NVDA) $12.55 +4.80%
KLA-Tencor Corp. (KLAC) $48.72 +4.65%
Vertex Pharmaceuticals Inc. (VRTX) $50.48 +4.56%
Nasdaq 100 - Fallers
Ross Stores Inc. (ROST) $57.13 -6.27%
Netflix Inc. (NFLX) $77.69 -1.96%
Costco Wholesale Corp. (COST) $97.13 -1.32%
Virgin Media Inc. (VMED) $32.49 -0.81%
Whole Foods Market Inc. (WFM) $94.46 -0.35%
Perrigo Company (PRGO) $114.55 -0.32%
Amazon.Com Inc. (AMZN) $232.14 -0.32%
Intuitive Surgical Inc. (ISRG) $540.96 -0.23%
Randgold Resources Ltd. Ads (GOLD) $119.52 -0.06%
Apollo Group Inc. (APOL) $20.07 -0.05% |
| FX and Commodities round-up | FX round-up: Dollar climbs on mixed US data
The dollar rose slightly higher on Thursday following mixed US economic reports, which included jobless data and consumer confidence.
The ICE dollar index, which measures the greenback against a basket of six other major currencies, climbed from 79.903 on Wednesday to 80.052 last night.
The WSJ dollar index, which measures the currency against a slightly broader selection, rose to 70.04 on Thursday evening, from 69.94 last the previous evening.
The October ISM manufacturing sector purchasing managers index (PMI) has come in at 51.7 points, versus the 51 expected by the consensus. The new orders sub-index rose to 54.2 from 52.3. Even so, the Chair of the relevant survey Committee, Bradley J.Holcomb, has said that the rise seen in new orders is deceitful.
The Conference Board´s consumer confidence index for the month of October has come in at 72.2, below the 73 forecast. However, the previous month´s estimate has been revised down to 68.4 from 70.3. Worth noting as well, the bulk of the rise came from the current situation sub-index, which is a moderately negative aspect of the report.
Markit´s US manufacturing sector purchasing managers´ index (PMI) has come in at 51 for October, after 51.3 for the month before (Consensus: 51.3). This release is not to be confused with the much better known PMI from the Institute for Supply Management (PMI).
Initial weekly unemployment claims fell by 9,000 to 363,000 (Consensus: 370,000). Nevertheless, and as a possible note of caution, data from New Jersey and Washington DC had to be estimated due to Hurricane Sandy.
Following this, the euro declined to $1.2941 from $1.2962, while the pound traded at $1.6127, compared to $1.6134 the previous day. Commodities: Crude oil boosted by supply decline
Front-month crude oil futures got an unexpected boost on Thursday after week supply data showed a decline, with positive economic data from China also playing a role.
The HSBC Chinese manufacturing sector purchasing managers' index for the month of October rose to 49.5, from 47.9 in the month before, according to survey compiler Markit. This was an eight-month high and not far from the key level of 50 which indicates that the sector contraction has ceased. The consensus estimate was for 49.1.
The December contract for the commodity gained 0.99% to settle at $87.09 per barrel on the New York Mercantile exchange.
Things were also looking positive for unleaded gas, which climbed 0.13% to $2.63 per gallon, while natural gas rose 0.19% to end the day at $3.70 per million British thermal units.
Heating oil was the notable exception, down 0.95% to $3.03 per gallon.
In metals, gold dropped by 0.21% to settle at $1,715.50 per troy ounce on the December contract.
Silver was also lower, also down 0.21% to $32.25 per troy ounce, while platinum dipped 0.24% to $1,573.20. Copper bucked the trend to end the day 0.98% higher at $3.55 per pound. |
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