UK/Euro Financial Market Daily Morning Briefing – UK/Euro Financial Market Daily Morning Briefing
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A daily snapshot of the UK, French, German and Dutch markets just after the market open. Including a diary of key financial events across the UK and a summary of U.S after market close. Click here to receive or daily bulletins. News provided by AFX/Associated Press.
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UK/Euro Financial Market Daily Morning Briefing 02-11-2006
11/02/2006
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ADVFN III |
Morning Euro Markets Bulletin |
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Daily world financial news from AFX/Associated Press |
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London |
London shares open lower as US economic woes hit miners, Wolseley
Leading shares were lower in opening deals as continuing fears over the health of the US economy hit heavyweight miners and Wolseley, offsetting well received numbers from BG and Unilever, dealers said. At 9.00 am, the FTSE 100 was down 16.2 points at 6,133.4, reflecting the negative wider market. Volume was fair with 222 mln shares changing hands in 31,073 deals. Overnight, Wall Street closed lower as the latest batch of economic data revealed manufacturing growth was at its slowest in more than three years and that the housing market continues to struggle. The Dow Jones industrial average fell 49.71 to 12,031.02, the Standard & Poor's 500 dropped 10.13 to 1,367.81, and the Nasdaq slipped 32.36 to 2,334.35. And today, ahead of Friday's October non-farm payroll numbers, investors will eye the latest serving of economic data, including US weekly jobless claims and third quarter factory orders. Meanwhile, the mood was mixed in Asia this morning, as the Nikkei 225 index closed down 25.24 at 16,350.02, while the Hang Seng finished up 261.13 at a record 18,714.78. Back in London, ICI was an early casualty, down 5 at 389, as strong third quarter results were offset by cautious comments over the group's North American paints operations and rising costs. This morning, the group's third-quarter adjusted pretax profit rose 10 pct to 144 mln stg -- topping a consensus figure of about 138 mln. But, it added although it remains confident 2006 full year profit will be in line, demand for paint in North America is expected to "remain weak". Nevertheless, Merrill Lynch reiterated its 'buy' advice and said the slowdown in North American paints might hinder the shares in the very near term, but it still thinks there is more value to extract from running ICI more efficiently.
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However, miners were the main drag on blue chips as worries over global growth, and the US in particular, prompted investors to cash in on recent gains. Vedanta Resources was off 27 at 1463, Rio Tinto fell 43 at 2928, Antofagasta lost 6-1/2 at 509-1/2, Kazakhmys eased 15 at 1203 and BHP was down 12 at 1024. In pharmas, Smith & Nephew was also under the cosh, down 6-1/4 at 503 as caution ahead of the medical devices group's results later today offset reports it is in preliminary 20 bln usd merger talks with US rival Biomet. As for the numbers, analysts are looking for earnings before interest, tax and amortisation, what the company calls trading profit, of 137 mln usd, up 17 pct from 117 mln in the same period last year. Elsewhere, Wolseley fell 22 at 1184 as data out of the US yesterday showed the housing market continued to struggle, countering news this morning the construction materials group continued its acquisition spree with six further bolt-on deals for a combined 61 mln stg. And Vodafone slipped back 3/4 at 134-3/4 as investors dismissed reports in The Times that Russian conglomerate Alfa Group is seeking to buy 20 pct of the mobile phone giant -- with a view to possibly merging later on. In contrast, Unilever topped the board after the Anglo-Dutch group's third quarter results beat expectations. Sentiment was further boosted as the group said it will return an additional 250 mln eur to shareholders, over and above a previously announced 500 mln eur share buyback. In response, Credit Suisse reiterated its 'neutral' stance. BG was also courted, 5-1/2 higher at 678-1/2 after the oil & gas group reported an 11 pct rise in third quarter earnings, topping expectations, buoyed by strong production and commodity prices. Net profit rose to 342 mln stg from 307 mln a year earlier, a shade ahead of forecasts, while operating profit grew 15 pct to 633 mln stg from 551 mln, which was broadly in line. In response, Merrill Lynch reiterated its 'buy' advice and said BG remains one of its high conviction calls within large cap Integrated Oils and it sees growth over the period to 2012 as being more than double the rate of the European sector average.
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Also in a threadbare risers board, GlaxoSmithKline took on 9 at 1041, after an upgrade in stance to 'neutral' from 'underweight' by JP Morgan on valuation grounds following the recent post-results slide by the drugs giant's stock. The US broker said it believes GlaxoSmithKline's current valuation takes into account the firms poor operational outlook, with the group's inherent financial strength limiting the downside at these levels. On the second line, JD Wetherspoon jumped 19-1/2 to 584-1/4 following an upbeat trading statement from the pubs operator, with Dresdner Kleinwort prompted to raise its rating to 'add' from 'hold' in response. JD Wetherspoon said its like-for-like sales in the thirteen weeks ended October 29 2006 increased by 9.2 pct compared to a decline of 0.9 pct in the equivalent period a year ago. Total sales increased by 9.7 pct to 220.4 mln. Also in favour was Carphone Warehouse, 3-1/2 to the good at 298, after the mobile phone retailer posted broadly in-line interim results, accompanied by reassuring news regarding a possible Vodafone deal. Excluding its investment in broadband and the Virgin Mobile France joint venture, Carphone Warehouse said pretax profits would have risen over 60 pct to 59.3 mln stg -- at the top end of the 55-60 mln range.
UK Diary of Events
For a diary of key UK financial and corporate events today, click here
US Summary
For a summary of US stocks at yesterday's close of trade, click here
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Paris |
PARIS - Market data at 9.40 am:
Major indices: CAC-40 down 32.41 or 0.60 pct at 5,338.45 SBF-80 down 24.04 or 0.38 pct at 6,259.44 SBF-120 down 22.94 or 0.59 pct at 3,879.41
Volume: 320 mln eur 2 CAC-40 stocks up 38 CAC-40 stocks down
Major gainers: Business Objects up 0.34 or 1.18 pct at 29.07, announces tie-up with IBM Schneider Electric 0.35 or 0.42 pct at 82.90 Euronext up 0.35 or 0.44 pct at 79.65, reports record cash and derivatives trading in year-to-date PPR up 0.10 or 0.08 pct ast 118.50
Major losers: Arcelor-Mittal down 0.74 or 2.19 pct at 33.06 on profit-taking Michelin down 0.95 or 1.49 pct on profit-taking Thomson down 0.18 or 1.32 pct on profit-taking Safran down 0.22 or 1.24 pct at 17.48 as employees want to sell shares, possibly to GE
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Frankfurt |
FRANKFURT - Market data at 9.15
Top DAX risers Altana, up 1.54, or 3.53 pct at 45.12; Q3 numbers ahead of estimates. EBIT rose to 240 mln eur from 175 mln Continental, up 1.1, or 1.3 pct at 88.06; Several brokers adjust ratings & price targets. Henkel, up 0.69, or 0.66 pct at 105.21; Deutsche Boerse, up 0.72, or 0.56 pct at 128.29; October trading volume rises 23 pct year-on-year. FMC, up 0.5, or 0.48 pct at 104.85; Ongoing strength post Q3 Top DAX fallers ThyssenKrupp, down 0.32, or 1.17 pct at 29.51; Metro, down 0.44, or 0.95 pct at 45.83; RWE, down 0.66, or 0.86 pct at 76.43; DCX, down 0.32, or 0.77 pct at 45.34; Off on BMW numbers BMW, down 0.2, or 0.04 pct at 45.20; Q3 numbers slightly light at EBIT level, confirms guidance. BASF, down 0.24, or 0.35 pct at 68.33; Q3 slightly ahead of estimates, unclear picture.
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Forex |
Singapore 0728 GMT |
Sydney 0232 GMT |
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US dollar |
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yen 117.31 |
up from |
117.24 |
sfr 1.2470 |
up from |
1.2460 |
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Euro |
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usd 1.2745 |
down from |
1.2751 |
stg 0.6689 |
up from |
0.6688 |
yen 149.45 |
down from |
149.49 |
sfr 1.5888 |
unchanged |
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Sterling |
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usd 1.9048 |
down from |
1.9072 |
yen 223.32 |
down from |
223.56 |
sfr 2.3741 |
down from |
2.3756 |
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Australian dollar |
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usd 0.7705 |
down from |
0.7723 |
stg 0.4044 |
down from |
0.4049 |
yen 90.370 |
down from |
90.505 |
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