Friday 6 July 2012
QUOTE OF THE DAY
My formula for success is rise early, work late and strike oil
- John Paul Getty
THIS MORNING IN LONDON
FTSE 100
5,686.79
-5.84 -0.10%
FTSE 250
11,092.30
-38.57 -0.35%
FTSE 350
3,014.67
-4.05 -0.13%
FTSE All Share
2,948.18
-4.01 -0.14%
AIM 100
3,164.72
9.63 0.31%
AIM All Share
696.52
1.90 0.27%
11:59 am
TIP OF THE DAY
from top chartist Zak Mir of Zaks-TA.com
Burberry (BRBY) Calling a top in Burberry on the hope of say, a hard landing in China, has so far proved to be a rather painful exercise. However, buying the dips has not exactly been a smooth ride either. The view at this point is that a November uptrend line should be strong enough at 320p to trigger a rebound if only back to the June 1,372 gap over the next couple of weeks. Nevertheless, the likelihood is that only an end of day close back above the June gap would really be enough to deliver a sustained / sustainable retest of the April 2012 resistance zone through 1,500p.
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Stocks fall as investors shrug off central bank action
- Markets look ahead to US jobs report
- Investors shrug off central bank action
- Aviva jumps on Delta Lloyds disposal
The Footsie was trading within a narrow range on Friday morning as investors showed caution ahead of a pivotal employment report due out in the US in the coming hours.
Stocks on Thursday seemed to shrug off the news that the Bank of England (BoE) ramped up its asset purchase programme and the European Central Bank (ECB) and the People's Bank of China (PBoC) both slashed their benchmark interest rates.
Critics to the BoE move said that the £50bn increase in quantitative easing will only have a marginal effect on the real economy. ECB governing council member Erkki Liikanen said that the European rate cut should not be expected to save the day. Meanwhile, some say that the Chinese decision reflects policymakers' concerns about a 'hard-landing'.
"Risky assets failed to rally yesterday despite policy easing measures in China, the euro area and the UK. With the data calendar otherwise light today, the market's full attention therefore turns to the US employment report," said Barclays Capital analyst Khrishnamoorthy Sooben.
The monthly jobs data from the Labor Department is expected to see over 100,000 non-farm payrolls added in June. The jobless rate is expected to remain at 8.2%.
In other news, the International Monetary Fund (IMF) has warned that it is planning to lower its global growth forecast of 3.5% this year in light of the economic situation becoming "more worrisome".
UK producer prices fell at an 0.4% month-on-month rate in June (2.3% year-on-year), according to the latest data from the Office for National Statistics. This is the largest monthly fall since November 2008, when the index fell 0.7%. The consensus estimate was for a decrease of 0.2% (2.4% year-on-year).
FTSE 100: Aviva ups size of Delta Lloyd disposal
Having promised on Thursday that it would raise money from disposals, insurance giant Aviva moved quickly to act on that pledge by saying it will sell more of its stake in Delta Lloyd than originally intended, prompting a sharp rise in its share price this morning. Providing a lift was Societe Generale which upgraded the stock from 'sell' to 'hold'.
Food, ingredients and retail firm Associated British Foods rose after saying that it is to buy ethnic flour brand Elephant Atta from Premier Foods for £34m. Analysts at Panmure Gordon said this morning that the acquisition is a "perfect fit" for AB Foods.
Miners were firmly out of favour today despite the Chinese rate cut as worries about a steep slowdown in the world's second-largest economy weighed on sentiment. Polymetal, Evraz, Kazakhmys, Glencore and Rio Tinto were registering losses. Luxury brand Burberry, a business heavily exposed and heavily dependent on growth in China, also slumped.
Plumbing and heating group Wolseley was being pressured lower after Morgan Stanley downgraded its rating on the stock to 'equal weight'. Meanwhile, Barclays was lower after after Bernstein cut its rating to 'market perform'.
Pharmaceuticals giant AstraZeneca was in the red after Jefferies downgraded its rating on the stock from 'buy' to 'hold', following the recent strong performance in the shares. Jefferies says that it sees "major fundamental challenges" for the group, including its clinical and business development capabilities/decision making.
FTSE 250: AVEVA up, Carrilion down on broker comments
Engineering software firm AVEVA was a high riser after Berenberg upgraded the stock to 'buy' and lifted its target price from 1,660p to 1,927p.
Support services firm Carillion was a heavy faller after UBS downgraded the stock from 'neutral' to 'sell' and cut its target price from 285p to 230p. UBS said that the firm's first-half trading update showed a "deterioration in growth prospects" and that UK construction margins are "clearly not sustainable".
FTSE 100 - Risers
Aviva (AV.) 293.90p +3.27%
International Consolidated Airlines Group SA (CDI) (IAG) 158.40p +1.73%
G4S (GFS) 291.20p +1.64%
BT Group (BT.A) 215.60p +1.17%
InterContinental Hotels Group (IHG) 1,559.00p +1.17%
Shire Plc (SHP) 1,821.00p +1.05%
Imperial Tobacco Group (IMT) 2,565.00p +1.02%
SSE (SSE) 1,404.00p +0.72%
HSBC Holdings (HSBA) 570.40p +0.71%
Reckitt Benckiser Group (RB.) 3,523.00p +0.71%
FTSE 100 - Fallers
Polymetal International (POLY) 867.00p -3.02%
ICAP (IAP) 316.30p -2.95%
Evraz (EVR) 250.90p -2.68%
Marks & Spencer Group (MKS) 320.90p -2.52%
CRH (CRH) 1,185.00p -2.39%
Wolseley (WOS) 2,365.00p -2.11%
Burberry Group (BRBY) 1,314.00p -1.87%
Kingfisher (KGF) 271.00p -1.67%
Kazakhmys (KAZ) 746.50p -1.52%
Experian (EXPN) 940.50p -1.42%
FTSE 250 - Risers
Aveva Group (AVV) 1,750.00p +3.12%
Soco International (SIA) 332.70p +2.02%
Beazley (BEZ) 144.00p +1.84%
Yule Catto & Co (YULC) 141.00p +1.66%
Ferrexpo (FXPO) 224.40p +1.54%
Spirent Communications (SPT) 168.90p +1.44%
BH Macro Ltd. GBP Shares (BHMG) 1,928.00p +1.21%
ITE Group (ITE) 200.00p +1.21%
Cable & Wireless Communications (CWC) 29.80p +1.19%
Shaftesbury (SHB) 532.50p +1.14%
FTSE 250 - Fallers
Carillion (CLLN) 254.00p -5.19%
Avocet Mining (AVM) 62.40p -3.26%
Petropavlovsk (POG) 464.90p -2.66%
Spirit Pub Company (SPRT) 46.50p -2.62%
Carpetright (CPR) 642.00p -2.58%
SIG (SHI) 98.70p -2.57%
Imagination Technologies Group (IMG) 470.90p -2.53%
Jupiter Fund Management (JUP) 213.70p -2.38%
Atkins (WS) (ATK) 711.50p -2.33%
Barratt Developments (BDEV) 138.40p -2.26%
WHAT THE BROKERS SAY
THE LATEST ON THE CRAZY BOARD
The top 5 hot company threads on the Bulletin Board:
Falkland Oil & Gas
Borders & Southern
Port Erin Biophrama
Norseman Gold
Running trading thread
Click here to discuss shares with other ShareCrazy members
BOOK OF THE WEEK
By Rodney Hobson
A book review by Aaron Padgham of t1ps.com
An equity investment usually offers two types of return, capital gain from the upward movement of a share price and income gain from a profit share, the dividend. The latter can be a valuable income stream for anymore, particularly in the current climate which has been characterised by record low interest rates. Rodney Hobson's 'The Dividend Investor' is the ultimate guide to maximising income through equity investments, guiding those who have grasped the basics of investing but are unsure on how to build a portfolio that produces a rising income stream.
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