ADVFN
Morning Euro Markets Bulletin
Daily world financial news
Wednesday, 10 September 2014
London Market Report
FTSE 100
Euronext
Dax perf
CAC 40
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London open: Ex-div stocks, Sports Direct lead UK markets lower
UK equity markets declined on Wednesday morning with ex-dividend stocks providing a drag, along with poorly-received trading updates from the likes of Sports Direct and London Stock Exchange (LSE).
The FTSE 100 was trading down 0.4% at 6,803 within the opening hour.
London stocks were also tracking declines seen on Wall Street on Tuesday after a high-anticipated product launch from tech giant Apple underwhelmed US investors.
The company unveiled two new versions of its iPhone as well as its first wearable watch device and a new contactless payment system, though these were widely expected by the market, causing the shares to finish in the red by the close. Apple's stock has still risen by over 22% since the start of 2014 and is close to a record high.
Markets were awaiting a Bank of England inflation report hearing on Wednesday. Four members of the Monetary Policy Committee (MPC) will sit down before the Treasury Committee and answer questions on its inflation report, providing an opportunity for the market to glean more concrete guidance on monetary policy.
Speculation surrounding the outcome from another opinion poll on Scottish independence was also keeping UK investors nervous. Results from a recent Indyref pooll are set to be announced and come just a few days after aYougov poll revealed that 'yes' campaigners had marginally won more support ahead of the 18 September referendum.
Ex-div stock, Sports Direct and LSE fall
Admiral was a heavy faller in early deals after going ex-dividend. Other stocks trading without access to their latest dividend payments included AL Noor Hospitals Group, Berendsen, Bwin.party Digital Entertainment,G4S, Savills, Standard Life, Land Securities, Hargreaves Lansdown, Restaurant Groupand Rank Group.
Sports retailer Sports Direct slumped after revealing details of how England's disappointing performance at the World Cup affected sales. Group sales were up 12.2% in its fiscal first quarter, as 16.3% growth in the largest sports retail business was partly offset by declines in the premium lifestyle and brands divisions.
The London Stock Exchange edged lower after saying that trends have been broadly unchanged since its trading update on 22 August.
Heading the other way was B&Q and Brico Depot owner Kingfisher after replacing its chief executive as it reported flat profits due to currency volatility, although it said the buoyant UK housing market had lifted demand for DIY products.
Along with an impressive set of final results, housebuilder Barratt Developments pledged to return almost ?1bn to shareholders over the next three years via special dividends, helping the stock higher.
Market Movers
techMARK 2,855.42 +0.03%
FTSE 100 6,829.55 -0.08%
FTSE 250 15,746.01 -0.14%
FTSE 100 - Risers
Morrison (Wm) Supermarkets (MRW) 174.20p +2.47%
Lloyds Banking Group (LLOY) 73.43p +1.70%
Marks & Spencer Group (MKS) 433.50p +1.26%
Petrofac Ltd. (PFC) 1,107.00p +1.10%
Persimmon (PSN) 1,325.00p +1.07%
Smiths Group (SMIN) 1,352.00p +0.90%
Rio Tinto (RIO) 3,244.50p +0.89%
Barclays (BARC) 226.75p +0.82%
Vodafone Group (VOD) 206.90p +0.71%
Centrica (CNA) 326.30p +0.68%
FTSE 100 - Fallers
Unilever (ULVR) 2,693.00p -1.28%
Land Securities Group (LAND) 1,058.00p -1.21%
Royal Dutch Shell 'B' (RDSB) 2,513.50p -1.06%
Coca-Cola HBC AG (CDI) (CCH) 1,414.00p -1.05%
Ashtead Group (AHT) 1,012.00p -0.98%
St James's Place (STJ) 699.50p -0.92%
Hammerson (HMSO) 599.00p -0.83%
Royal Dutch Shell 'A' (RDSA) 2,416.50p -0.82%
SSE (SSE) 1,465.00p -0.81%
British Land Co (BLND) 722.50p -0.76%
FTSE 250 - Risers
Petra Diamonds Ltd.(DI) (PDL) 187.50p +6.05%
Oxford Instruments (OXIG) 1,172.00p +2.54%
Hansteen Holdings (HSTN) 102.30p +2.10%
Lonmin (LMI) 224.00p +1.68%
Ferrexpo (FXPO) 133.10p +1.60%
Inmarsat (ISAT) 716.00p +1.56%
Cairn Energy (CNE) 177.80p +1.54%
Supergroup (SGP) 1,217.00p +1.42%
Dechra Pharmaceuticals (DPH) 763.00p +1.40%
Galliford Try (GFRD) 1,247.00p +1.38%
FTSE 250 - Fallers
Fidessa Group (FDSA) 2,240.00p -2.18%
Hochschild Mining (HOC) 161.00p -1.83%
COLT Group SA (COLT) 140.00p -1.69%
Exova Group (EXO) 183.50p -1.66%
Daejan Holdings (DJAN) 4,848.00p -1.64%
Centamin (DI) (CEY) 65.20p -1.58%
Telecity Group (TCY) 758.00p -1.56%
Croda International (CRDA) 2,184.00p -1.49%
Go-Ahead Group (GOG) 2,275.00p -1.43%
UK Event Calendar
INTERIMS
Accesso Technology Group, Advanced Medical Solutions Group, Alkane Energy, Alliance Pharma, Anpario, Belvoir Lettings, Corero Network Security, Electrical Geodesics Inc (Regs), Kingfisher, Optimal Payments Plc, Restore
INTERIM EX-DIVIDEND DATE
Admiral Group, AL Noor Hospitals Group, APR Energy, Arrow Global Group, BBGI SICAV S.A. (DI), Berendsen, Bwin.party Digital Entertainment, Cape, Centaur Media, Chesnara, Churchill China, Clarke (T.), Clarkson, Communisis, Elementis, G4S, H&T Group, Holders Technology, Lavendon Group, Rathbone Brothers, Restaurant Group, Savills, Standard Life, Temple Bar Inv Trust, Tex Holdings, Treatt
QUARTERLY PAYMENT DATE
Canaccord Genuity Group Inc., IBM Corp., Unilever
QUARTERLY EX-DIVIDEND DATE
British Assets Trust, Land Securities Group
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Crude Oil Inventories (US) (15:30)
MBA Mortgage Applications (US) (12:00)
Wholesales Inventories (US) (15:00)
FINALS
Barratt Developments, Mcbride, Purecircle Limited (DI)
IMSS
Sports Direct International
SPECIAL EX-DIVIDEND PAYMENT DATE
Admiral Group, Hargreaves Lansdown
EGMS
OAO Severstal GDR (Reg S)
AGMS
Acorn Minerals, BATM Advanced Communications Ltd., Downing One VCT , Greene King, ITM Power, Mwana Africa, Sports Direct International, Stewart & Wight, Trinity Capital
FINAL DIVIDEND PAYMENT DATE
Bacit Limited, Mulberry Group
FINAL EX-DIVIDEND DATE
Colefax Group, Dart Group, Darty, Goodwin Plc, Hargreaves Lansdown, Mattioli Woods, Rank Group, Swan (John) & Sons
Europe Market Report
FTSE 100
Euronext
Dax perf
CAC 40
Europe open: Stocks slide on Russian sanctions, uncertainty over Scotland's future
European stocks slumped as the bloc digested further sanctions on Russia and uncertainty surrounding Scotland’s upcoming referendum on independence.
The European Union (EU) has imposed stricter sanction on Moscow, including Russian state-owned oil companies raising money from European financial markets.
In Scotland an opinion poll released by TNS on Tuesday showed 38% of Scottish people back breaking away from the UK, compared to 39% against the notion. It compared to last month's poll which revealed 32% for a 'yes' vote and 45% for 'no'.
The TNS survey followed a Yougov poll over the weekend which showed most were in favour of independence, sending the pound to a 10-month low on Monday.
Elsewhere in the UK, Bank of England Governor Mark Carney will testify on the August inflation report, a day after reinforcing expectations for an interest rate hike in spring next year during a speech at the Trade Union Congress in Liverpool.
On the company front, Santander’s stocks slumped after its executive chairman Emilio Botin died of heart attack at 79.
Kingfisher gained after Europe’s largest home-improvement retailer said Ian Cheshire will step down as chief executive.
The euro fell 0.03% to $1.2933.
US Market Report
US close: Apple drags indices lower after intraday high
The massive attention on the iPhone 6 product launch from Apple dragged the Wall Street indices hither and thither on Tuesday and although the shares hit an intraday high they ended the day in the red, leading all three benchmarks lower.
With the Cupertino company the heaviest weighted stock on the S&P 500 and Nasdaq, both indices suffered multi-week lows on a quiet day for economic data, with the S&P 500 down 0.68% and the Nasdaq down 0.88%, while the Dow Jones fell 0.57%.
The world's largest company ended up losing 0.4% during the session to $97.99, though this meant the company held onto almost all its gains in recent months, having risen 33% higher since May's statement from Eddy Cue, Apple's head of iTunes, that the company had the most exciting pipeline in 25 years.
At its highly-anticipated product launch in Cupertino, California the company unveiled two new smartphones, dubbed the iPhone 6 and iPhone 6 Plus, along with an iWatch and a new contactless payment system called Apple Pay.
Tech rival Amazon was a leading faller, with the market disappointed with the firm's Fire phone as the company cuts the selling price to boost flagging sales.
Investors also lost the taste for McDonald’s as a result of weak August sales data, which saw global sales fall 3.7% during the month, due to higher competition in the US.
The company is also being hit by geopolitical factors it seems, as Russia also closed another outlet, citing food safety reasons, the tenth restaurant to be closed in the country recent weeks.
Meanwhile, Trump Entertainment Resorts, which operates two casinos in Atlantic City, filed for Chapter 11 of bankruptcy protection, listing assets and liabilities of between $100m and $500m in its bankruptcy petition.
In economic news, the Small Business Optimism Index provided a glint of positivity, with small business owners in the US mildly more optimistic throughout August.
The Small Business Optimism Index rose 0.4% to 96.1, broadly in line with consensus expectations at 96.0 and a modest increase from July’s reading of 95.7.
The index is four points below the level it was at before the 2007 financial crisis.
The 10-year US yield rose two basis points to 2.49%.
Brent crude oil prices remained steady at $100 a barrel, while the dollar registered new highs against the euro and the yen as European stocks recorded losses after Russia warned of possible counter-sanctions in response to the latest round of EU sanctions which was made official on Tuesday.
S&P 500 - Risers
Tenet Healthcare Corp. (THC) $61.02 +3.44%
WellPoint Inc. (WLP) $120.95 +2.39%
AbbVie Inc (ABBV) $56.86 +2.32%
Comcast Corp. (CMCSA) $56.56 +1.54%
Zimmer Holdings Inc. (ZMH) $102.35 +1.42%
Teradata Corp. (TDC) $45.43 +1.25%
FMC Technologies Inc. (FTI) $56.93 +1.21%
Newmont Mining Corp. (NEM) $25.59 +1.19%
Time Warner Cable Inc. (TWC) $152.50 +1.16%
Aetna Inc. (AET) $84.91 +1.14%
S&P 500 - Fallers
Amazon.Com Inc. (AMZN) $330.18 -4.68%
Alliance Data Systems Corp. (ADS) $245.58 -4.24%
Micron Technology Inc. (MU) $31.93 -3.64%
Avon Products Inc. (AVP) $13.18 -3.51%
Discovery Communications Inc. Class A (DISCA) $40.96 -3.49%
Garmin Ltd. (GRMN) $51.73 -3.42%
FMC Corp. (FMC) $64.08 -3.09%
Gannett Co. Inc. (GCI) $32.39 -3.08%
eBay Inc. (EBAY) $52.60 -3.01%
Under Armour Inc. Class A (UA) $70.57 -2.92%
Dow Jones I.A - Risers
Unitedhealth Group Inc. (UNH) $88.57 +0.75%
Microsoft Corp. (MSFT) $46.73 +0.56%
Coca-Cola Co. (KO) $41.94 +0.38%
Wal-Mart Stores Inc. (WMT) $76.72 +0.25%
Boeing Co. (BA) $128.17 +0.15%
United Technologies Corp. (UTX) $108.63 +0.03%
Dow Jones I.A - Fallers
Home Depot Inc. (HD) $88.92 -2.09%
Goldman Sachs Group Inc. (GS) $177.23 -1.60%
McDonald's Corp. (MCD) $91.09 -1.52%
Verizon Communications Inc. (VZ) $48.81 -1.45%
Intel Corp. (INTC) $34.86 -1.33%
JP Morgan Chase & Co. (JPM) $59.10 -1.33%
American Express Co. (AXP) $87.85 -1.21%
AT&T Inc. (T) $34.63 -1.09%
Walt Disney Co. (DIS) $89.60 -1.06%
Chevron Corp. (CVX) $124.98 -0.97%
Nasdaq 100 - Risers
Comcast Corp. (CMCSA) $56.56 +1.54%
Altera Corp. (ALTR) $36.23 +0.86%
Vimpelcom Ltd Ads (VIP) $8.86 +0.80%
Dollar Tree Inc (DLTR) $55.94 +0.70%
Symantec Corp. (SYMC) $24.55 +0.64%
Mondelez International Inc. (MDLZ) $35.53 +0.59%
Avago Technologies Ltd. (AVGO) $88.39 +0.59%
Liberty Global plc Series A (LBTYA) $41.62 +0.57%
Microsoft Corp. (MSFT) $46.73 +0.56%
Vodafone Group Plc ADS (VOD) $33.21 +0.27%
Nasdaq 100 - Fallers
Amazon.Com Inc. (AMZN) $330.18 -4.68%
Micron Technology Inc. (MU) $31.93 -3.64%
Discovery Communications Inc. Class A (DISCA) $40.96 -3.49%
Garmin Ltd. (GRMN) $51.73 -3.42%
eBay Inc. (EBAY) $52.60 -3.01%
Illumina Inc. (ILMN) $174.83 -2.97%
TripAdvisor Inc. (TRIP) $96.48 -2.77%
Baidu Inc. (BIDU) $220.96 -2.53%
Yahoo! Inc. (YHOO) $40.76 -2.52%
Newspaper Round Up
Wednesday newspaper round-up: Scottish referendum, Apple, UK energy...
Buckingham Palace has taken the unprecedented step of warning politicians not to drag the Queen into the battle over Scottish independence. In unusually forceful language betraying signs of irritation at the highest level, a palace spokesman rejected calls from MPs, including Labour’s Simon Danczuk and the Tory Henry Bellingham, for the monarch to intervene to help to keep the Union together. - The Times
Apple’s highly anticipated entry into the world of wearable technology is the Apple Watch, CEO Tim Cook announced on Tuesday. The Apple Watch will monitor health and fitness, tracking the wearer’s movement, heartrate and activity with built-in sensors, feeding the information into Apple’s Health app for the iPhone and iPad and allowing review and analysis of the data. - The Guardian
British Gas will be forced to advise its 9m household customers that they would be better off switching to Sainsbury’s Energy, under plans from regulator Ofgem. SSE will also be forced to tell its 5m customers that they could get a cheaper deals with M&S Energy, under the proposals, expected to be published this week. Both energy giants operate so-called “white label” arrangements with the retailers, whereby British Gas and SSE supply electricity and gas to customers under Sainsbury’s and M&S branding. - The Telegraph
The City watchdog is putting contingency plans in place in case it is deluged with calls from desperate companies and consumers following a ‘yes’ vote in next week’s Scottish referendum. John Griffith-Jones, chairman of theFinancial Conduct Authority, said the regulator had done ‘some basic contingency planning’ in case Scotland votes to go independent next week. He said the regulator was prepared for a rush of calls from consumers and businesses about the implications of a ‘yes’ vote. - The Daily Mail
Monarch Airlines is in talks with unions and the pensions regulator about swingeing cuts to salaries, benefits and retirement payouts as it struggles to stay airborne after the withdrawal of its billionaire Swiss backers. The holiday carrier’s owner, the Mantegazza family of Switzerland, has refused to absorb further losses and has declined to plug a 158 million hole in Monarch’s pension fund. Staff are being asked for pay cuts and productivity improvements of between 25 per cent and 35 per cent, on top of 900 job losses from the 3,300-strong workforce. - The Times
Britain's biggest energy firms have agreed to refund more than 153m to 3.5 million domestic customers after the cash accumulated in closed accounts over the past six years, the industry body announced today. - The Guardian