ADVFN III Evening Euro Markets Bulletin -Monday, September 24th 2012-.

	ADVFN III	Evening Euro Markets Bulletin
	Daily world financial news

Monday, 24 September 2012

London Market Report

FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts

London close: Miners hit as no sign of gear-change in China Market Movers techMARK 2,136.85 -0.08% FTSE 100 5,838.84 -0.24% FTSE 250 11,903.11 -0.39% After reaching a nadir at midday, equities pared losses in the afternoon session, with defensive stocks enjoying a bit of support. The morning had been characterised by gloom over China's economy and differences of opinion among the heavy hitters in the Eurozone. Chinese central-bank advisor Song Guoqing comceded over the week-end that there are precious few signs of the Chinese economy recovering its mojo in the third quarter. Sur le continent, investor sentiment was knocked by renewed concerns over the single currency region following France and Germany's failure to agree a schedule for initiating shared oversight of the region's banking sector. Economic data from Germany further soured sentiment. Germany's IFO business climate indicator fell to 101.4 points in September, down from 102.3 in the previous month and the 102.5 expected by the market consensus. The business climate gauge has declined for a fifth consecutive month according to data from the IFO Institute in Munich. Undermined Miners led the fallers in the wake of the comments about the Chinese economy. Analysts at JP Morgan advised its clients to take profits in the sector because stalling economic growth in the US and more significantly in China, are expected to offset the US Fed´s third round of asset purchases. Furthermore, JP Morgan analysts have specifically recommended avoiding shares of Khazakmys and Anglo American. Analysts at Bank of America Merrill Lynch seemed to be coming round to JP Morgan's view, at least so far as shares of Anglo American are concerned, as they downgraded the stock to "neutral" from "buy". Mining giant Bumi was also weighing on the sector after it said it was investigating allegations of financial and other irregularities at its Indonesian operations. The investigation centres on PT Bumi Resources, in which the company has a 29% interest, with particular focus on that firm's development funds. "The extensive development funds in PT Bumi Resources Tbk and the one development asset in PT Berau Coal Energy Tbk were marked down to zero in the accounts of Bumi plc as at December 31st 2011, except for one investment with a carrying value of $39m in the consolidated financial statements," the statement said. While Bumi was gloomy, Petra Diamonds shone brightly after a trading update. The company offered reassurance on the recent unrest in the South African mining sector, which has seen workers killed and a number of mines closed. "With regards to Petra, it is important to note that the majority of the group's employees are skilled and semi-skilled workers, as block cave mining is a highly mechanised process," it said. "Petra has a strong track record of stable labour relations and has not over recent months experienced any disturbances related to employee unrest or external intimidation of employees." Fund manager Aberdeen Asset Management saw its assets under management (AuM) edge up in the first two months of the second half of the year. AuM at the end of August stood at £184.3bn, up from £182.7bn at the end of June. Gross new business during July and August totalled £6.1bn, but overall the group saw a net outflow of £0.1bn. Aberdeen's much smaller sector peer MAM Funds saw assets under management grow for the third quarter in a row and said the second half of the year had started well. AuM reached £1.72bn at the end of June, up 3.5% from £1.67bn at the end of December. Elsewhere in the financial sector, taxpayer-owned Royal Bank of Scotland (RBS) unveiled plans to cut an extra 300 jobs at its investment bank. RBS now aims to cut 3,800 roles at its investment banking arm by the end of 2013, 300 more than previously anticipated. The lion's share of those jobs, 3,000, will be gone by the end of this year. Defence firm QinetiQ started the day with a bang as it aid its first half performance had been better than expected on the back of the majority of two key orders for the Q-Net vehicle survivability product beingdelivered earlier than originally planned. Dairy products firm Dairy Crest warned of lower first half profits, as challenging conditions continue, but said profit expectations for the full year ending March 31st 2013 remain unchanged. Profit before tax and exceptional items slipped to £14.9m in the six months ended July 28th, from £16.2m in the corresponding period of last year at Irn-Bru maker AG Barr. The company took a £1m hit from adverse currency movements, although around £0.6m of this is expected to unwind in the second half of the year. On a constant currency basis, first half profit before tax was £0.3m behind the similar period in the prior year. Sales in the first seven weeks of the second half have shown double digit percentage growth. Other markets The price of oil has south at a rate of knots, with the most actively trade futures contract for Brent crude off $2.42 at $109.00 a barrel. The yield on the benchmark 10-year gilt is 1.81%, down from 1.84% earlier this morning. FTSE 100 - Risers Shire Plc (SHP) 1,845.00p +1.71% Reckitt Benckiser Group (RB.) 3,638.00p +1.08% Smith & Nephew (SN.) 693.00p +1.02% Compass Group (CPG) 711.50p +0.99% Sainsbury (J) (SBRY) 347.80p +0.84% British Sky Broadcasting Group (BSY) 738.50p +0.75% AstraZeneca (AZN) 2,962.50p +0.70% United Utilities Group (UU.) 727.00p +0.69% BT Group (BT.A) 233.50p +0.65% BG Group (BG.) 1,253.50p +0.60% FTSE 100 - Fallers Eurasian Natural Resources Corp. (ENRC) 330.60p -4.03% Evraz (EVR) 261.50p -3.82% GKN (GKN) 218.90p -3.14% Vedanta Resources (VED) 1,056.00p -2.76% Anglo American (AAL) 1,887.50p -2.61% Sage Group (SGE) 317.10p -2.37% Glencore International (GLEN) 354.15p -2.17% Kazakhmys (KAZ) 714.00p -2.06% ITV (ITV) 88.10p -2.06% Rio Tinto (RIO) 2,980.00p -2.01% FTSE 250 - Risers Petra Diamonds Ltd.(DI) (PDL) 118.00p +7.57% QinetiQ Group (QQ.) 182.90p +6.46% Computacenter (CCC) 377.40p +2.78% Brown (N.) Group (BWNG) 274.30p +2.58% Diploma (DPLM) 467.90p +2.23% SIG (SHI) 104.70p +2.05% Barr (A.G.) (BAG) 459.90p +1.97% Pace (PIC) 168.30p +1.85% Shanks Group (SKS) 90.15p +1.75% Stobart Group Ltd. (STOB) 116.50p +1.75% FTSE 250 - Fallers Bumi (BUMI) 147.60p -24.66% Talvivaara Mining Company (TALV) 157.60p -4.25% Centamin (DI) (CEY) 91.80p -4.08% Imagination Technologies Group (IMG) 512.50p -3.57% Petropavlovsk (POG) 424.30p -3.48% Dunelm Group (DNLM) 662.00p -3.36% Bodycote (BOY) 388.60p -2.85% Travis Perkins (TPK) 1,055.00p -2.77% Oxford Instruments (OXIG) 1,316.00p -2.73% New World Resources A Shares (NWR) 283.50p -2.64% FTSE TechMARK - Risers BATM Advanced Communications Ltd. (BVC) 17.50p +6.06% Antisoma (ASM) 1.69p +4.64% Oxford Biomedica (OXB) 2.46p +2.07% FTSE TechMARK - Fallers E2V Technologies (E2V) 130.25p -4.05% Filtronic (FTC) 41.50p -4.05% Ricardo (RCDO) 378.25p -3.26% Vislink (VLK) 30.50p -3.17% Promethean World (PRW) 23.25p -3.12% Skyepharma (SKP) 97.75p -2.74% Xaar (XAR) 242.50p -2.22% Europe Market Report FTSE 100 Euronext Dax perf CAC 40 The Swiss Stock Market Pulled Back Monday On Growth Concerns The Swiss stock market lost ground at the beginning of the new trading week, as investors took profits. The market was under pressure in early trade, after the disappointing German Ifo business sentiment report. The difference of opinion between Germany and France over banking regulation and ongoing concerns about Chinese growth also had a negative impact. Growth concerns in China were triggered again after Song Guoqing, an academic adviser to the People's Bank of China, said he saw no signs of a rebound in the third quarter and domestic investment is unlikely to expand dramatically in the short term. The Swiss Market Index fell by 0.13 percent Monday and finished at 6,597.22. The Swiss Leader Index declined by 0.32 percent and the Swiss Performance Index lost 0.16 percent. Shares of cyclicals stocks were under pressure Monday. Lonza led the way, with a loss of 2.4 percent and Schindler fell by 1.6 percent. Geberit decreased by 1.3 percent and Adecco lost 1.2 percent. Financial stocks also finished in negative territory at the start of the new trading week. Credit Suisse declined by 2.0 percent and UBS fell by 1.1 percent. Swiss Life was the largest decliner among the insurers, with a loss of 2.1 percent. US Market Report US open: Apple leads stocks lower -Apple off 2% after iPhone 5 sales estimates Dow Jones Industrial: -0.33% Nasdaq Comp.: 0.73% S&P 500: -0.44% The major US equity benchmarks have opened lower by 0.5% on average. That on the back of a rather weak news-flow out of the Eurozone over the weekend. Of interest, some market commentary is today calling attention to the poor performance year-to-date in the Dow Jones Transportation average as a precursor to weakness in financial markets. This ahead of what traditionally are two very weak months for stocks before seasonal strength kicks in during the run-up to the year´s end. With somewhat less negative implications perhaps, income at oil and gas producers will fall by 24% in the three months ending in September, the largest decline in three years, according to more than 1,200 analyst estimates compiled by Bloomberg. Excluding the retreat, earnings in the benchmark gauge for US stocks would climb 2.5%, the 12th straight increase, amid gains for banks and computer makers, the data shows. Back on the company front, Apple is down 2% after saying that it sold more than 5 million of its iPhone 5s in 3 days. That number is approximately half of what was expected by some analysts. Micron Technologies has been downgraded by analysts at Pacific Crest Securities to sector perform. Red Hat´s chief executive officer is looking to make acquisitions in the "cloud space," the news agency is reporting today. Crude futures falling on economic doubts Front month West Texas crude futures are now down by 1.53% to the 91.47 dollar per barrel level on the NYMEX. 10 year US Treasuries are now gaining by 8/32 dollars, with yields at 1.78%. Broker Tips Monday broker round-up: AAL - Anglo American

ADVFN III Evening Euro Markets Bulletin -Monday, September 10th, 2012-.

	ADVFN III	Evening Euro Markets Bulletin
	Daily world financial news

Monday, 10 September 2012

London Market Report

FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts

London close: Stocks flat, markets in 'wait and see' mode Market Movers techMARK 2,114.20 -0.12% FTSE 100 5,793.20 -0.03% FTSE 250 11,841.50 +0.28% - Investors cautious ahead of pivotal week - Ruling on ESM and FOMC meeting in focus - Miners lead risers on hopes of QE3 London's FTSE 100 index finished just two points lower on Monday afternoon as investors refrained from building positions ahead of a busy week for the markets. The Footsie stayed within a narrow range for most of the day with just 20 points between the intraday high and low. "Markets have reverted to 'wait and see' mode today ahead of this week's key events out of Europe and the US as investors start to book some profits after the gains of the last few days," said market analyst Michael Hewson from CMC Markets. Investors are awaiting the German Constitutional Court ruling on the European Stability Mechanism on Wednesday, while Thursday's focus will be on the Federal Open Market Committee meeting in the US, "both of which are major event risks", according to Ishaq Siddiqi from ETX Capital. "Germany's opposition of the ECB's bond buying plan and the mixed data picture of the US economy prompt a huge degree of uncertainty over both events," he said. Stocks were given a boost towards the end of last week after European Central Bank (ECB) President Mario Draghi unveiled details of the bank's bond-buying programme, which included unlimited and sterilised purchases of sovereign debt with maturities over between one and three years. In other news, China reported significantly worse-than-expected import figures for August, falling for the first time in a non-holiday period since 2009. The trade surplus widened to $26.7bn last month, well above expectations of $19.5bn. Meanwhile, Japan's Cabinet Office slashed its estimate of gross domestic product growth for the second quarter to an annualised rate of 0.7% (consensus: 1.0%), versus the preliminary estimate of 1.4%. FTSE 100: Miners gain on hopes for further QE Mining stocks were performing well on Monday with expectations for further quantitative easing (QE) measures from the Federal Reserve driving gains. UBS said this morning that the outlook for the UK mining sector is improving: "QE triggers a return of capital flows to emerging markets, incentivising companies to stop running for cash and embark on a commodity bullish restocking phase. As in the past, QE is likely to drive up commodity prices and in turn mining equities." Kazakhmys, which was upgraded by the Swiss broker today from 'sell' to 'buy', was the best performing FTSE 100 constituent this afternoon. Sector peers Vedanta, Rio Tinto and Fresnillo were also wanted. Xstrata edged higher, extending gains made Friday when Glencore released its eleventh-hour adjustment to its offer for the miner. Glencore gave details of its proposal to Xstrata this morning, saying that "it is content with Xstrata's request for Xstrata management and senior employees to receive appropriate retention and incentive packages." Shares in retailer Marks & Spencer were up on reports that a buy-out of the firm is in the works. Banks are said to be exploring different possible means to structure a leveraged buy-out of the company, according to a report published by Reuters last Friday after the close of markets. Government-owned lender Royal Bank of Scotland (RBS) was pushed higher by reports that it could start the process of spinning off its Direct Line Insurance Group by the end of the week. Sector peer Barclays was making gains after UBS raised its target for the stock from 205p to 235p and reiterated its 'buy' recommendation. The broker said that there is "potentially significant upside if new CEO changes strategy". B&Q owner Kingfisher was making gains today after Credit Suisse initiated coverage on the stock with an 'outperform' rating. The broker said that given its historical and prospective growth, and improving returns, the stock should trade at a premium to its UK retail peers. Meanwhile, Primark and sugar group AB Foods was out of favour despite saying that adjusted operating profits in the second half will be well ahead of last year and in line with expectations. Investec said this morning it expects to lower its full-year EPS estimate due to the weaker-than-expected profits in the Ingredients division. FTSE 250: Spirax-Sarco rises after broker upgrade Spirax-Sarco was performing well after Goldman Sachs upgraded the stock to 'buy' and raised its target from 2,100p to 2,510p. Meanwhile, Laird headed the other way after the same US broker cut its recommendation to 'sell'. Electronics retailer Dixons was up after revealing that it is seeking to retire some of its existing debt prior to issuing some new loan notes. The group has offered to buy back up to £130m pounds in outstanding debt. Of the total, £80m would come from the company's outstanding £300m 2012 bond issue which currently yields 6.125%. A further £50m would go on the 8.75% bonds due 2015. The Paragon Group of Companies was down after purchasing further unsecured loans through its Idem Capital Securities subsidiary from The Royal Bank of Scotland under the terms of a forward flow agreement. FTSE 100 - Risers Kazakhmys (KAZ) 686.50p +4.41% Royal Bank of Scotland Group (RBS) 253.00p +3.48% Vedanta Resources (VED) 1,003.00p +2.82% Marks & Spencer Group (MKS) 371.10p +2.74% CRH (CRH) 1,206.00p +2.38% International Consolidated Airlines Group SA (CDI) (IAG) 149.90p +2.18% Antofagasta (ANTO) 1,249.00p +1.88% Fresnillo (FRES) 1,756.00p +1.86% Resolution Ltd. (RSL) 214.30p +1.76% Rio Tinto (RIO) 3,069.00p +1.59% FTSE 100 - Fallers SABMiller (SAB) 2,700.00p -2.26% Glencore International (GLEN) 370.00p -2.13% United Utilities Group (UU.) 687.00p -2.00% Associated British Foods (ABF) 1,280.00p -1.99% National Grid (NG.) 681.00p -1.66% British American Tobacco (BATS) 3,124.50p -1.54% Severn Trent (SVT) 1,690.00p -1.52% BAE Systems (BA.) 327.70p -1.44% Unilever (ULVR) 2,245.00p -1.32% Tullow Oil (TLW) 1,386.00p -1.28% FTSE 250 - Risers JD Sports Fashion (JD.) 723.50p +9.37% Bwin.party Digital Entertainment (BPTY) 103.70p +7.80% Ferrexpo (FXPO) 196.50p +7.49% Bank of Georgia Holdings (BGEO) 1,320.00p +5.85% Hays (HAS) 81.25p +5.79% Dixons Retail (DXNS) 20.25p +5.03% Spirax-Sarco Engineering (SPX) 2,126.00p +4.47% Petropavlovsk (POG) 394.00p +4.23% Man Group (EMG) 83.90p +4.03% Lonmin (LMI) 619.00p +3.86% FTSE 250 - Fallers Laird (LRD) 230.50p -4.20% Ruspetro (RPO) 114.70p -4.02% Dairy Crest Group (DCG) 344.00p -3.70% Premier Farnell (PFL) 185.40p -2.78% Premier Oil (PMO) 376.90p -2.71% Paragon Group Of Companies (PAG) 199.20p -2.64% Yule Catto & Co (YULC) 166.40p -2.06% Barr (A.G.) (BAG) 458.40p -2.05% Cranswick (CWK) 813.50p -1.99% AZ Electronic Materials SA (DI) (AZEM) 323.00p -1.82% Europe Market Report FTSE 100 Euronext Dax perf CAC 40 Europe close: Markets slip on China fears Greek PM meeting Eurozone officials on rescue programme - China numbers worry markets - Philips down after Goldman hit FTSE 100: -0.03% Dax 30: -0.01% Stoxx 600: -0.22% Cac 40: -0.37% Ibex 35: -0.32% FTSE MIB: -0.11% European stocks retreated on Monday as investors cashed in on the big gains of the previous week. Last Thursday equities got a big boost when the European Central Bank revealed plans to buy the debt of distressed euro area nations but investor attention has now turned to the strings the ECB will attach to any intervention in the bond market. Most observers would agree that the conditions imposed on Greece have been disastrous and no one wants a repeat if Spain and Italy ask for help. Today the Greek Prime Minister Antonis Samaras has been meeting EU officials after he failed to win agreement from his coalition partners for the latest round of cuts demanded by the country's lenders. Further darkening the mood have been disappointing numbers out of China where both the industrial production figure for August (+8.9%) and imports (-2.6%) came in below expectations. COMPANIES On the Stoxx 600 index, the weakest sector was 'food and beverage' which fell 1.22%. The strongest sector was 'basic resources' which added 0.81%. The Belgo-Brasilian brewing giant InBev, the makers of Budweiser, Stellar Artois and Becks fell 2.8% amidst a general slump in the sector. Nestle (-0.6%) also had a bad day. The world's biggest maker of light bulbs, Philips Electronics, dropped 2.4% after Goldman Sachs reduced its rating from buy to neutral. Goldman also did a job on Telefonica, saying the Spanish firm didn't warrant a premium over other telecoms stocks. The stock fell back 1%. US Market Report US open: Stocks start the week slightly lower -S&P 500 trading near 5 year average PE multiple -Apple may unveil iPhone 5 this week Dow Jones Industrial: -0.14% Nasdaq Comp.: -0.25% S&P 500: -0.08% The main US equity benchmarks are now trading slightly lower. That ahead of a weekly calendar brimming with potentially market-moving events and following weak data out in China and Japan overnight. For now however investors seem to be pausing ahead of this next Thursday's rate setting meeting of the US Federal Reserve. Traders are also closely watching events in Greece and Spain. Back on the corporate front, AIG is down after the US Treasury announced its intention to lower its stake in the former insurance giant to below 50%. Plains Exploration&Production will purchase $5.5bn in Gulf of Mexico assets from BP. Of interest, the S&P 500 is now changing hands at 13.9 times the expected earnings of its members, according to data compiled by Bloomberg. That's the highest since February 2011 and almost matches the average ratio since 2007 of 14. Goldman Sachs has cut its recommendation on shares of Wells Fargo to buy from Conviction buy. 10 year US Treasuries are now flat, with yields at 1.67%. Front month West Texas crude futures are declining by 0.85% to the 95,60 dollar per barrel mark on the NYMEX. S&P 500 - Risers Cliffs Natural Resources Inc. (CLF) $41.17 +3.16% Advanced Micro Devices Inc. (AMD) $3.54 +2.61% Sprint Nextel Corporation (S) $5.16 +2.58% First Solar Inc. (FSLR) $20.93 +2.40% Alpha Natural Res (ANR) $7.06 +2.32% Vulcan Materials Co. (VMC) $41.25 +2.23% Cabot Oil & Gas Corp. (COG) $42.98 +1.92% PPG Industries Inc. (PPG) $115.27 +1.88% Tesoro Corp. (TSO) $40.84 +1.74% Regions Financial Corp. (RF) $7.49 +1.70% S&P 500 - Fallers International Paper Co. (IP) $34.74 -4.28% Chesapeake Energy Corp. (CHK) $19.67 -3.32% American International Group Inc. (AIG) $32.94 -3.09% Boeing Co. (BA) $71.03 -2.55% Mosaic Company (MOS) $59.57 -2.36% Intel Corp. (INTC) $23.67 -2.15% Colgate-Palmolive Co. (CL) $104.05 -2.12% Express Scripts Holding Co (ESRX) $61.99 -2.07% Constellation Brands Inc. Class A (STZ) $32.96 -2.05% Celgene Corp. (CELG) $73.98 -1.94% Dow Jones I.A - Risers Alcoa Inc. (AA) $9.25 +1.65% Home Depot Inc. (HD) $57.60 +0.59% Verizon Communications Inc. (VZ) $43.89 +0.39% Caterpillar Inc. (CAT) $88.42 +0.36% Bank of America Corp. (BAC) $8.82 +0.23% Merck & Co. Inc. (MRK) $44.14 +0.20% Chevron Corp. (CVX) $114.23 +0.20% American Express Co. (AXP) $57.83 +0.17% AT&T Inc. (T) $37.34 +0.11% Travelers Company Inc. (TRV) $65.25 +0.06% Dow Jones I.A - Fallers Boeing Co. (BA) $71.03 -2.55% Intel Corp. (INTC) $23.67 -2.15% 3M Co. (MMM) $91.26 -1.68% Cisco Systems Inc. (CSCO) $19.28 -1.43% Microsoft Corp. (MSFT) $30.52 -1.39% Coca-Cola Co. (KO) $37.62 -0.74% General Electric Co. (GE) $21.44 -0.69% United Technologies Corp. (UTX) $79.03 -0.48% Wal-Mart Stores Inc. (WMT) $73.57 -0.34% Walt Disney Co. (DIS) $51.60 -0.27% Nasdaq 100 - Risers Expeditors International Of Washington Inc. (EXPD) $38.40 +1.64% Green Mountain Coffee Roasters Inc. (GMCR) $28.22 +1.40% Warner Chilcott Plc (WCRX) $13.04 +1.40% QUALCOMM Inc. (QCOM) $62.49 +0.90% Amgen Inc. (AMGN) $84.55 +0.70% Randgold Resources Ltd. Ads (GOLD) $112.08 +0.55% KLA-Tencor Corp. (KLAC) $52.11 +0.50% Sandisk Corp. (SNDK) $44.48 +0.50% Vertex Pharmaceuticals Inc. (VRTX) $57.37 +0.47% Wynn Resorts Ltd. (WYNN) $103.20 +0.45% Nasdaq 100 - Fallers Intel Corp. (INTC) $23.67 -2.15% Express Scripts Holding Co (ESRX) $61.99 -2.07% Baidu Inc. (BIDU) $107.44 -1.96% Celgene Corp. (CELG) $73.98 -1.94% Electronic Arts Inc. (EA) $13.77 -1.92% Apollo Group Inc. (APOL) $29.77 -1.72% Avago Technologies Ltd. (AVGO) $35.58 -1.71% BMC Software Inc. (BMC) $42.70 -1.45% Cisco Systems Inc. (CSCO) $19.28 -1.43% Monster Beverage Corp (MNST) $57.39 -1.43% Broker Tips Broker tips: Miners, AB Foods, Chariot The outlook for the UK mining sector is now improving as expectations for quantitative easing (QE) increase, according to UBS on Monday morning. The broker said: "QE triggers a return of capital flows to emerging markets, incentivising companies to stop running for cash and embark on a commodity bullish restocking phase. As in the past, QE is likely to drive up commodity prices and in turn mining equities." UBS has upgraded its rating for Kazakhmys from 'sell' to 'buy' and reiterated its 'buy' calls on ENRC and Ferrexpo. Investec has reiterated its 'hold' rating and 1,300p target for Primark owner and sugar group Associated British Foods as the firm's pre-close trading update guided to full-year results slightly below forecasts. "We read the FY as a little below our expectations at Group level, with the usual swings and roundabouts underneath," said analyst Martin Deboo. The slightly miss is due to weaker-than-expected profits in Ingredients. "The two principal Divisions of Sugars and Primark (75% of profits) appear to be more or less in line with our FY12E numbers. However we expect a £100m impairment charge in Australia and weak Ingredients to embarrass ABF a little this morning," Deboo said. Seymour Pierce has retained its 'sell' recommendation for AIM-listed oil and gas group Chariot Oil and Gas, which plummeted on Monday morning after revealing that it has plugged and abandoned its Kabeljour exploration well, offshore Namibia. "We have been long-term 'sellers' of Chariot since our February initiation, highlighting the under explored nature of their acreage. We also pointed to the optimistic chance of success estimate prior to drilling," said Seymour's Sam Wahab. Wahab said that the Kabeljou result, as well as the setback at Tapir South, "concludes a disappointing year for Chariot following heavy initial fundraising."

ADVFN III Evening Euro Markets Bulletin -Monday, September 3rd. 2012-.

	ADVFN III	Evening Euro Markets Bulletin
	Daily world financial news

Monday, 03 September 201

London Market Report

FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts

London close: Miners jump on hopes of central bank action Market Movers techMARK 2,107.18 +0.53% FTSE 100 5,758.41 +0.82% FTSE 250 11,503.13 +0.81% - Central banks in China, US and Europe expected to act - UK manufacturing beats expectations - Fresnillo leads miners higher Stocks markets in the States may have been closed for Labour Day but that didn't stop bourses in Europe from registering decent gains on Monday, with London's Footsie starting the week strongly, up 0.82 per cent on the day. "Despite continued poor economic data from China, as well as Europe, investors appear to be taking comfort from the fact that this is likely to make further monetary easing more likely in the near term, thus supporting asset prices," said market analyst Michael Hewson from CMC Markets. According to a monthly survey by HSBC, the China manufacturing purchasing managers' index (PMI) dropped from 49.3 in July to 47.6 in August, its lowest reading since March 2009. The news follows the official PMI data from last week which fell to a nine-month low of 49.2. Any figure below 50 indicates a contraction. "However, the data does suggest that Chinese policymakers have plenty of room to promote easing tools to spur growth and have previously this year re-armed the country by cutting rates. As such, hopes that China will soon have no choice but to stimulate growth have been the main driver of today's gains," said market strategist Ishaq Siddiqi from ETX Capital. The UK's own manufacturing data beat expectations last in August, though it still posted its fourth straight month of contraction. The manufacturing PMI rose to 49.5, from 45.2 in July, a four-month high and better than the 46 reading expected by analysts. Nevertheless, the focus of the markets this week will undoubtedly be on the European Central Bank (ECB) monetary policy meeting on Thursday at which President Mario Draghi is widely expected to unveil plans for buying sovereign debt in order to bring down bond yields in peripheral nations. Following on from last week's climax of the Federal Reserve Chairman Ben Bernanke's closely watched speech at the Jackson Hole symposium, markets widely believe that further quantitative easing (QE) is now on the cards for the central bank's next meeting on September 13th and 14th. A close eye will be keep on the upcoming payrolls and manufacturing figures due out this week in the US, which will likely be the deciding factor in whether the Fed pulls the trigger or not. FTSE 100: Miners gain on stimulus hopes A strong showing by the miners assured that the Footsie was firmly in the red on Monday afternoon in spite of some steep falls for some heavyweight stocks, such as Glencore, Admiral and ARM Holdings. Disappointing Chinese economic figures, which usually results in a sell-off in the mining sector, had the adverse effect today as speculation mounted that Chinese policy-makers would act to stimulate the world's second-largest economy, one of the biggest sources of demand for the miners. Meanwhile, precious metals peers Fresnillo and Randgold were among the highest risers on hopes that silver and gold prices (dollar-denominated commodities) will rise as the US dollar weakens after the potential launch of QE3. Other miners, such as Vedanta, Kazakhmys and Rio Tinto, also finished the day with decent gains. However, Glencore was bucking the trend on the back of rumours that it will be sticking to its original offer for mining group Xstrata in spite of growing opposition to the terms. Qatar Holdings, which owns around 12% of the group, confirmed last week that it would vote against the merger at the shareholder meeting on Friday. Car insurance giant Admiral was under heavy selling pressure on Monday afternoon after Credit Suisse downgraded its rating on the shares from 'outperform' to 'neutral', saying that there isn't much upside left in the stock. Canaccord Genuity also downgraded Admiral to 'sell' today, while Exane BNP Paribas reiterated its 'underperform' recommendation. Chip group ARM Holdings was also lower after Deutsche Bank downgraded its recommendation from 'hold' to 'sell'. "Despite reflecting many of ARM's long-term growth drivers such as rising royalty rates and penetration of new markets in our model, we expect ARM's [earnings per share] growth to slow down to mid-teens," said analyst Kai Korschelt. FTSE 250: Talvivaara gains after reassuring investors Finnish zinc and nickel mining company Talvivaara was a high riser after it denied it will be cutting jobs as part of a cost savings plan. Rumours had been circulating that the low price of nickel would force a reduction in headcount. Shares in Lonmin, one of the world's biggest platinum producers, rose on after reports the firm had agreed details of a wage deal with striking miners. Work on the company's Marikana project in South Africa has been at a standstill for three weeks after a pay dispute turned violent, culminating in a bloody showdown with police that left 34 miners dead. Africa-focused oil group Ophir Energy rose after significantly upping estimates of potential resources at one of its sites in Tanzania. Meanwhile, house-builders were on the up after Panmure Gordon today lifted its targets across the sector. Barratt Developments, Taylor Wimpey and Bovis Homes all benefitted from the forecast change. FTSE 100 - Risers Fresnillo (FRES) 1,627.00p +4.23% Kazakhmys (KAZ) 610.00p +2.87% Vedanta Resources (VED) 892.00p +2.82% Sage Group (SGE) 303.50p +2.46% Wolseley (WOS) 2,602.00p +2.36% BT Group (BT.A) 222.50p +2.25% Rio Tinto (RIO) 2,795.50p +2.19% Hargreaves Lansdown (HL.) 633.00p +1.93% Next (NXT) 3,644.00p +1.93% Tullow Oil (TLW) 1,389.00p +1.91% FTSE 100 - Fallers Admiral Group (ADM) 1,150.00p -3.04% ARM Holdings (ARM) 559.50p -2.53% Aggreko (AGK) 2,337.00p -0.97% Morrison (Wm) Supermarkets (MRW) 278.20p -0.64% Ashmore Group (ASHM) 327.00p -0.61% Resolution Ltd. (RSL) 214.60p -0.56% Kingfisher (KGF) 274.10p -0.54% Xstrata (XTA) 947.20p -0.53% Severn Trent (SVT) 1,726.00p -0.29% ICAP (IAP) 316.90p -0.25% FTSE 250 - Risers Talvivaara Mining Company (TALV) 140.00p +11.64% Barratt Developments (BDEV) 158.60p +5.73% Persimmon (PSN) 734.00p +5.16% Centamin (DI) (CEY) 83.25p +4.72% Soco International (SIA) 351.50p +4.36% Bovis Homes Group (BVS) 492.60p +4.10% Hochschild Mining (HOC) 450.00p +4.05% Taylor Wimpey (TW.) 53.25p +3.90% Ophir Energy (OPHR) 586.00p +3.81% Phoenix Group Holdings (DI) (PHNX) 507.50p +3.57% FTSE 250 - Fallers CSR (CSR) 310.00p -4.79% Bumi (BUMI) 303.20p -4.65% Petra Diamonds Ltd.(DI) (PDL) 101.70p -2.68% Menzies(John) (MNZS) 613.50p -2.62% Redrow (RDW) 151.10p -2.58% Cape (CIU) 237.00p -2.23% Heritage Oil (HOIL) 190.10p -2.01% Kentz Corporation Ltd. (KENZ) 390.10p -1.86% Henderson Group (HGG) 104.20p -1.79% PayPoint (PAY) 705.00p -1.67% Europe Market Report FTSE 100 Euronext Dax perf CAC 40 Europe close: All eyes on ECB bond plan European stocks up - Draghi hints at three year bond purchases - Nokia comeback continues FTSE 100:+0.82% Dax 30:+0.63% Stoxx 600: +0.84% Cac 40: +1.19% Ibex 35: +0.18% FTSE MIB: +1.10% European markets climbed on Monday as hopes for central bank stimulus rose on both sides of the Atlantic. European Central Bank President Mario Draghi is expected to unveil a bond buying programme after the bank's policy meeting on September 6th. On monday he was quoted as telling lawmakers at the European Parliament that the ECB is considering purchasing bonds with maturities of up to three years. Last week Draghi's US counterpart, Fed Chairman Ben Bernanke indicated he too was open to "non-conventional" measures which most observers have interpreted as opening the door to further bond purchases. The UK based research firm Markit Economics says the European manufacturing sector contracted by more than initially estimated in August. Its manufacturing Purchasing Manager's Index for the euro area was revised downward to 45.1 from an initial estimate of 45.3. Anything below 50 implies the sector is shrinking. COMPANIES Food and beverage stocks were the strongest on the Stoxx 600, rising 1.38%. The weakest segment was automobiles & parts, which fell 0.93%. Italian drinks maker Campari will buy Jamaican rum maker Lascelles DeMercado for $414.8m in a bid to hasten its push into overseas markets. It rose around 7%. Nokia continued its recent comeback, rising 4.7% as investors wonder, post Apple's court victory over Samsung, whether the ailing Finnish firm may yet yield more value. The Spanish government is expected to inject up to €5bn into failed lender Bankia, which has just reported a €4.45bn first half loss. The group gained 8% on the news. Fresenius Medical (+0.76%) has abandoned its takeover offer for Rhone Klinikum. OTHER MARKETS The euro was up 0.14% against the dollar at $1.2596 at 17:02. Futures contracts on a barrel of brent crude had risen 0.81% by 16:53. CAC 40 - Risers Pernod Ricard (RI) € 88.67 +3.50% Cap Gemini (CAP) € 30.00 +2.65% Sanofi (SAN) € 66.51 +2.24% L'Oreal (OR) € 99.73 +2.04% Technip (TEC) € 85.27 +1.83% Danone (BN) € 50.40 +1.72% Vallourec (VK) € 37.50 +1.71% Essilor International (EI) € 70.57 +1.70% Saint Gobain (SGO) € 27.73 +1.65% Accor (AC) € 25.62 +1.63% CAC 40 - Fallers Renault (RNO) € 36.82 -0.93% Peugeot (UG) € 5.96 -0.91% Credit Agricole (ACA) € 4.62 -0.45% ST Microelectronics (STM) € 4.71 -0.15% US Market Report Markets Closed Broker Tips Broker tips: Morrisons, Prudential, Home Retail Nomura has downgraded its rating for supermarket group Morrisons after analysing the recent Kantar grocery survey. According to the survey, Morrisons' volume growth lagged behind its counterparts by around 4% at the last data point. "We recognise MRW's ability to preserve profitability, having faced volume headwinds from both Asda's Netto conversions (abating) and TSCO's reset (ongoing), and expect resilient H1 interims (September 6th). However, MRW's survey volume trend proves the tipping point for us to revise our recommendation to 'neutral' (from 'buy')," the broker said. Galvan Research and Trading has recommended to buy shares of insurance giant Prudential, saying that the stock's recent underperformance is 'unwarranted'. "Although recent weeks have seen the market plump for sector peer Aviva rather than Prudential, Galvan Research regards the Pru as a 'buy' on the basis of the recent relative share price underperformance and the fact that the fundamental downside remains cushioned by very strong Asian growth," said Galvan's head of research, Andrew Gibson. Investec has upgraded its rating for Argos and Homebase owner Home Retail Group, saying that the firm's second-quarter trading statement next week could see a pick up in sentiment. "While the market short position in Home Retail has retreated, it remains very high and we therefore believe the shares should react positively to evidence of more resilient trading at Argos," Investec said on Monday morning. "With share price risk weighted to the upside in our view, we are therefore moving from 'sell' to 'buy', with a new target of 109p (70p previously)."