Tuesday 24 July 2012
QUOTE OF THE DAY
Money isn't everything, but it certainly keeps you in touch with your children
- Alexander Hamilton
THIS MORNING IN LONDON
FTSE 100
5,526.99
-6.88 -0.12%
FTSE 250
10,928.91
32.00 0.29%
FTSE 350
2,935.17
-2.05 -0.07%
FTSE All Share
2,871.61
-1.76 -0.06%
AIM 100
3,000.55
2.53 0.08%
AIM All Share
667.41
-1.09 -0.16%
12:02 pm
Stocks lower as Spanish yields keep rising
- Investors digest PMI data from China and Eurozone
- Moody's turns 'negative' on Germany, Netherlands and Luxembourg
- Spanish bond yields continue to set new records
The Footsie was slightly lower by Tuesday lunchtime as Eurozone jitters continue to dampen equity markets. The index was swinging between gains and losses in morning trade as investors had to digest a raft of economic data and gloomy comments from Moody's.
Spanish 10-year bond yields continued to set new records this morning, up 10.5 basis points at 7.603% by midday. Borrowing rates surged yesterday on reports that more Spanish regions will following Valencia in asking for government aid. Markets are now concerned that this will lead to a full-scale bailout for the southern European nation. This morning, Spain manage dto meet its target at a short-term debt sale, but had to pay euro-era high yields.
Meanwhile, it is feared that the International Monetary Fund might not provide any additional funds for Greece, prompting concerns that the country will default on its debt. Yesterday, however, the Washington based lender reiterated its support for Greece.
Moody's Investors Service revised the outlooks on the triple-A ratings of Germany, the Netherlands and Luxembourg to 'negative' from 'stable' due to the rising uncertainty regarding the outcome of the Eurozone debt crisis and the increased likelihood of Greece's exit from the single-currency region.
The German Finance Ministry scoffed at Moody's decision saying that the risks in the Eurozone are "nothing new"; that while pointing to the fact that financial markets disagree, as is evident by its record low financing costs. In a statement, the ministry said that "Germany will continue to defend its 'safe haven' status through solid economic and financial policy."
There's a barrage of economic data due out today across the globe, including purchasing managers' indices (PMIs) from the Eurozone - manufacturing PMI fell from 45.1 to 44.1 in July, under expectations of a rise to 45.3. Meanwhile, services PMI increased from 47.1 to 47.6m, above the 47.3 forecast.
In China, the preliminary HSBC manufacturing PMI rose from 48.2 to 49.5; while the sector is still contracting, the PMI is at a five-month high.
FTSE 100: Croda provides a lift, while financials fall.
Strong demand for its speciality chemicals in America offset weaker trading conditions in Europe for Croda International in the first half of 2012, causing shares to jump 5%.
Banking stocks Barclays, Standard Chartered, Lloyds, RBS and HSBC were in the red today as Eurozone concerns continue to take their toll. Shares fell despite Investec reiterating its 'buy' ratings for all five stocks, saying that while the upcoming first-half results season will be "unexciting", lenders are unlikely to provide a negative surprise.
Imperial Tobacco fell after saying that while net revenue was up 3% in the first nine months of the year, stick equivalent volumes fell 3%. The group also noted "challenging conditions" in some markets.
Oil giant BP was higher on the back of reports that Rosneft is looking to buy its stake in Russian joint venture TNK-BP.
FTSE 250: Provident, Man and Int'l Personal Finance jump
Provident Financial, the small loans specialist, advanced this morning after reporting a sparkling performance from its Vanquis Bank division in the first half of 2012. First half pre-tax profit rose 17.0% to GBP72.9m from GBP62.3m the year before.
Hedge fund manager Man Group surged despite funds under management falling from $58.4bn to $52.7bn and adjusted profits almost halving. The firm said it was on track to achieve its cost-cutting target of $95m and said it will save further in the next 18 months.
The doorstep lender International Personal Finance (IPF) jumped after saying that it is to return a pile of cash to shareholders after reporting a big rise in customer numbers and underlying profits at the half year stage.
Heading the other way was consumer products group PZ Cussons after tough trading conditions in Nigeria and Australia plus soaring raw material costs dented profits in the year to May 31st.
FTSE 100 - Risers
Croda International (CRDA) 2,384.00p +6.95%
Aggreko (AGK) 1,936.00p +1.57%
Amec (AMEC) 1,068.00p +1.52%
Rolls-Royce Holdings (RR.) 848.00p +1.50%
SSE (SSE) 1,395.00p +1.38%
Shire Plc (SHP) 1,893.00p +1.34%
Burberry Group (BRBY) 1,263.00p +1.04%
Unilever (ULVR) 2,174.00p +0.88%
Serco Group (SRP) 563.50p +0.81%
WPP (WPP) 798.00p +0.76%
FTSE 100 - Fallers
ICAP (IAP) 300.20p -2.28%
Aviva (AV.) 269.00p -2.25%
Kingfisher (KGF) 253.00p -1.90%
International Consolidated Airlines Group SA (CDI) (IAG) 146.10p -1.68%
Admiral Group (ADM) 1,131.00p -1.65%
Glencore International (GLEN) 304.45p -1.42%
Vodafone Group (VOD) 177.00p -1.23%
Standard Chartered (STAN) 1,439.50p -1.23%
Legal & General Group (LGEN) 123.90p -1.12%
RSA Insurance Group (RSA) 106.90p -1.02%
FTSE 250 - Risers
Provident Financial (PFG) 1,295.00p +10.40%
Man Group (EMG) 75.05p +8.53%
International Personal Finance (IPF) 253.70p +7.41%
Regus (RGU) 90.35p +3.26%
Ruspetro (RPO) 133.50p +3.01%
RPS Group (RPS) 231.90p +2.84%
African Barrick Gold (ABG) 325.20p +2.59%
Salamander Energy (SMDR) 196.70p +2.02%
Senior (SNR) 181.60p +1.97%
Stobart Group Ltd. (STOB) 121.00p +1.94%
FTSE 250 - Fallers
PZ Cussons (PZC) 305.10p -5.16%
Morgan Crucible Co (MGCR) 241.50p -4.24%
Savills (SVS) 360.10p -3.92%
Telecom Plus (TEP) 791.00p -2.94%
Cable & Wireless Communications (CWC) 31.52p -2.87%
Henderson Group (HGG) 91.65p -2.66%
Stagecoach Group (SGC) 276.50p -2.64%
NMC Health (NMC) 195.00p -2.26%
Ocado Group (OCDO) 74.20p -2.05%
CSR (CSR) 295.80p -1.96%
WHAT THE BROKERS SAY
THE LATEST ON THE CRAZY BOARD
The top 5 hot company threads on the Bulletin Board:
Oracle Coalfields
Norseman Gold
3 Legs Resources
Falkland Oil & Gas
Running trading thread
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BOOK OF THE WEEK
By Jack D. Schwager
A book review by James Faulkner of WatsHot.com
As of April 2012 the hedge fund industry reached a record high of $2.13 trillion total assets under management, having surpassed the previous high of $1.93 trillion in 2008 before the onset of the financial crisis. While the industry remains a relatively small component of the financial sector at large (it accounted for just 1.1% of the total funds and assets held by financial institutions as of 2009), it is often said to attract the creme de la creme of industry talent, and is home to the money of the some of the richest people on the planet.
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