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 04-09-2006
09/04/2006
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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 stay higher; miners positive buoyed by strong commodity prices
UK blue chips climbed in early deals assisted by Friday's strong rally on Wall Street and strength in the mining sector due to buoyant commodity prices, with all eyes on the BoE interest rate meeting later this week, dealers said. At 9.03 am, the FTSE 100 index was up 17.4 points at 5,966.5, a day's high, with the wider market also in positive mood. On Friday Wall Street ended an erratic week with the DJIA increased 83.00 points, or 0.73 pct, to 11,464.15. Broader stock indicators also posted gains Friday. The Standard & Poor's 500 index gained 7.19 points, or 0.55 pct, rising to 1,311.01, and the Nasdaq composite index rose 9.41, or 0.43 pct, to 2,193.16. In Asia Japan's Nikkei 225 index closed up 223.82 points at 16,358.07 while in Hong Kong the Hang Seng finished the early session up 95.76 points at 17,519.48 This week, London will have its eyes firmly set on the conclusion of Thursday's Bank of England rate-setting meeting. The BoE is poised to keep its key repo rate unchanged at 4.75 pct, following its surprise rate hike last month. Among the gainers, BAE systems, up 2-1/4 pence at 374-1/2, was assisted by weekend press reports that is expected to agree this week to sell its 20 pct stake in Airbus to EADs for 1.9 bln stg, far less than the valuation ascribed to the holding by its own accountants. Elsewhere, the Observer reported that NASDAQ is weighing a hostile bid for the LSE, sending the stock higher by 11 pence to 1,165, because chief executive Clara Furse and chairman Chris Gibson-Smith have told Nasdaq boss Bob Greifeld that they want it to stay independent for the foreseeable future.
Press comment also helped lift Severn Trent, gaining 10 pence at 1,335. The Independent on Sunday wrote that the utilities company plans to return at least 600 mln stg to shareholders when it spins off its Biffa waste business.
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Meanwhile, the miners helped sentiment as commodity prices increased. BHP Billiton was up 14 pence at 1,022, Anglo American increased 9 to 2,343, Rio Tinto plumped 20 pence to 2,718, while Antofagasta was up 4 pence at 477-3/4. Unilever benefited from positive broker comment, better by 19 pence at 1,276, having been upgraded to 'buy' from 'neutral' by UBS, with an improved price target of 22 eur from 19. The Swiss-owned broker noted that although it remains sceptical of a sustained recovery in the group, the stock's current valuation fails to reflect an expected pick-up in the second half. However, PartyGaming was the top riser, up 2-1/2 pence at 118-1/2, ahead of results on Thursday. On the downside Cairn Energy lost favour ahead of tomorrow's results, down 2 pence at 2,147. Investors will grill the company for details of plans to list its vast oil exploration and production business in India when it unveils half-year results on Tuesday. Cairn has given very little update on the share offer on the Bombay Stock Exchange ever since the plan was announced in March. Property group Hammerson had pleased investors in early trade following solid results, yet u-turned to slip 5 pence to 1,305. The firm turned in a 55.6 pct increase in first half profit, buoyed by strong demand for office space in the UK and France. The company said pretax profit for the six months to June 30 came in at 384.8 mln stg, up from 247.3 mln stg in the same period last year. Net asset value per share -- rose 12.3 pct on the year to 13.89 stg. On the second tier, Intertek Group was the top riser, up 37 points, or 5.23 pct, at 744, after posting a jump in first half pretax profits, prompting Bridgewell Securities to reiterate its 'overweight' rating and raise its full year pretax profit forecasts. Intertek posted pretax profit of 45.2 mln stg in the first half of 2006 from 39.5 mln the prior year on revenue of 327.1 mln stg, up from 272.3 mln. In reaction to the numbers, Bridgewell Securities said that all of Intertek's divisions performed well and oil, chemical and agricultural in particular grew operating profits by 22 pct, reflecting the good regulatory environment in the US and increased demand for analytic services.
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Shares in Taylor Nelson Sofres increased 6-1/2 pence to 200, as the stock was reiterated as 'buy' at Deutsche Bank after the UK market research group posted better-than expected interim numbers alongside a reassuring full-year outlook. The group said pretax profit for the six months to June 30 was 34.1 mln stg, ahead of the 30.8 mln stg consensus and unchanged from 34.1 mln a year earlier. In response, Deutsche Bank said headline pretax profit topped its flagged 30.2 mln estimate, with the dividend raised 12 pct. Amlin was the days biggest loser, off 6-1/4 pence at 278-3/4. The insurer fell after it said first-half pretax profits had fallen to 120.1 mln stg from 138.4 mln stg a year earlier on a weak dollar. Gross written premiums rose to 846.2 mln stg from 675.8 mln a year earlier, despite lagging in the UK commercial market due to increased competition. Shares in IMI, down 9-3/4 at 497, were weaker as investors locked in profits after a strong run, the group's interim results today saw first half operating profit up 16 pct although the group faces rising raw material prices. Earlier today, the engineering group said it continues to face cost issues as it reported a 16 pct increase in interim operating profit before restructuring costs to 85.9 mln stg. IMI said rising metals prices and other raw material costs had affected margins in many of its businesses, although it said it had put measures in place to limit some of the impact in the second half. Finally, McCarthy & Stone fell down 11 pence at 1,070 after it said it still supports the 1,075 pence per share offer for the company made by Mother Bidco, after rival bidder Mars Bidco said today it will not increase its own offer of 1,030 pence. Mars Bidco is a joint venture by Barclays Capital PIA and Permira Advisers LLP. McCarthy & Stone said it is not aware of any other parties interested in acquiring the company and so encourages shareholders to submit their acceptances of the Mother Bidco offer by the next closing date, which is 3.00 pm tomorrow.
US Summary
For a summary of US stocks at Friday's close of trade, click here
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Paris |
PARIS - Market data at 9.32 am:
Major indices: CAC-40 up 12.59 points at 5,196.04 SBF-80 up 10.86 at 5,847.92 SBF-120 up 8.80 at 3,757.41
Volume: 213 mln eur 32 CAC-40 stocks up 5 CAC-40 stocks down 2 unchanged Arcelor-Mittal will join the benchmark from Sept 18.
Major gainers: Geophysique, up 2.90 eur or 2.3 pct at 131.30 after Lehman Brothers initiated coverage with an 'overweight' stance and 175 eur price target. Eutelsat, up 0.17 or 1.3 pct at 13.57 as it reported a full year net profit of 40.2 mln eur, up from a loss of 44.9 mln the previous year, and ahead of analyst expectations.
Major losers: Air Liquide, down 3.40 or 2 pct at 163 after posting first half net profit of 480 mln eur, below most analyst forecasts. But the company maintained its full year guidance, and dealers said the stock was hit by profit-taking after reaching an all-time high on Friday. Atos Origin, down 0.95 or 2.3 pct at 40.32 after Morgan Stanley cut its rating to 'underweight' from 'equal-weight' with a massively revised price target of 37 eur from 64 eur. Trigano, down 2.70 or 7.1 pct at 35.30 after CEO Francois Feuillet told Investir magazine that higher than anticipated costs could weigh on margins in the second half, dealers said.
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Amsterdam |
Forthcoming Events Tomorrow Rabobank H1 results, news conference
Today's Press
Dutch finance ministry convinces Aegon to keep 40 bln eur in The Netherlands, and not move investments to Ireland (Het Financieele Dagblad) Wolters Kluwer approved to operate China's first foreign-run bookstore (Financial Times)
Company News Rodamco Europe ups stake in 2 Paris shopping centers Wolters Kluwer to buy TaxWise of the US for undisclosed amount
Market Sentiment ING downgraded to 'add' from 'buy' by WestLB Vopak price target upped to 33 eur from 28.50 on strong H1 by ING Unilever upgraded to 'buy' vs 'neutral' at UBS Numico named ING 'top pick' among European food, HPC producers; maintained at 'buy'; Unilever kept at 'hold'
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Frankfurt |
Forthcoming Events Today IFA consumer electronics trade fair (day five of six)
Tomorrow Aug services PMI (9.55 am). Forecast 56.0 vs 56.1 Deutsche Boerse press event on data quality, Frankfurt (12.00 am) Deutsche Boerse decides on changes to the equity indices; Postbank expected to replace Schering on DAX Wacker Construction H1 results news conference Bundesbank president Axel Weber to speak at International Club of Business Journalists, Frankfurt IFA consumer electronics trade fair in Berlin (day six of six) Company News Deutsche Telekom reorganises managers' roles to fight domestic sales slump Deutsche Boerse Aug German exchanges turnover 362.6 bln eur versus 330.0 bln Eurex August contracts volume 107 mln, up 19 pct yr-on-yr
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