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 09-08-2006
08/09/2006
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ADVFN III |
Morning Euro Markets Bulletin |
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| Daily world financial news from AFX/Associated Press |
Supplied by advfn.com | | |
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London |
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London shares open up but fall back to breakeven; ITV weighs, BA UPDATE
LONDON - UK blue chips opened marginally higher but slipped into the red in early deals, following a negative close on Wall Street, and with a weak outlook from ITV and several heavyweights trading ex-dividend weighing on the downside, dealers said.
At 8.46 am, the FTSE 100 index was 1 point lower at 5,817.1, while the broader indices managed to creep into positive terrain.
Across the Atlantic overnight, Wall Street gave up early gains to close lower as the FOMC paused its interest rate hike campaign, as expected, allowing investors to shift their concern to worrying about when rate hikes will be resumed.
The Fed left interest rates unchanged at 5.25 pct for the first time in 18 meetings. The decision to take a breather came as economic growth is slowing -- a development that Fed policymakers suggested should eventually help lessen inflation risks posed by lofty energy prices.
The DJIA ended 45.80 points down at 11,173.60, the S&P 500 index closed 4.25 points lower at 1,271.50 and the Nasdaq Composite finished 11.65 points below at 2,060.85.
Meanwhile, in Asia this morning, trading was mixed, with Hong Kong shares higher as the Fed's rate decision led investors who had been staying on the sidelines ahead of the decision to buy into selected blue chips such as Swire Pacific, China Mobile and HSBC, dealers said.
Sentiment was also fuelled by retreating oil prices after OPEC announced that it would be ready to make up any shortfall in supply following BP's Alaskan pipeline closure. The September Nymex crude contract was virtually unchanged this morning at 76.32 usd per barrel, having fallen 0.67 usd overnight.
And the oil price slide was accompanied by a decline in commodity prices, with gold well below 640 usd an ounce at the Hong Kong midday close, and silver and copper also both moving lower.
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The Nikkei 225 index ended the morning session 174.38 points lighter at 15,290.28, while Hong Kong's Hang Seng stood 143.65 points higher at 17,191.85.
In London, a handful of blue chips trading ex-dividend -- AstraZeneca, BG Group, BP, HBOS, Lloyds, TSB, Reckitt Benckiser and Rio Tinto -- took 12.26 points off the index.
While among company-specific news, ITV was a casualty yet again, extending yesterday's decline when CEO Charles Allen announced his resignation from the troubled broadcaster.
This morning, the shares fell back a penny at 97-1/4 after the broadcaster's weak third-quarter outlook overshadowed its better-than-expected first-half results.
ITV warned of further falls in advertising revenues, while also announcing revenues for the first six months of 2006 rose 3 pct to 1.077 bln stg, and operating EBITA, excluding the effect of recently disposed businesses, were 1 pct higher at 205 mln stg.
The mining sector also weighed, falling on the back of the retreating commodity prices, with Rio Tinto sliding 40 pence at 2,710, BHP Billiton down 15 pence at 983 and Lonmin 22 pence lighter at 2,641.
Xstrata was also lower, down 14 pence at 2,203, despite news the Falconbridge board has finally recommended shareholders accept the Anglo-Swiss miner's offer.
Still among M&A, Sage Group fell back 3 pence at 219 as investors showed their displeasure at news it has agreed to acquire Florida-based Emdeon Practice Services (EPS) from its parent company Emdeon, Inc, for an enterprise value of
approximately 565 mln usd to be paid in cash.
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Not all was doom and gloom, however, with BA the top riser, up 11-1/4 pence at 389-1/2 after UBS hiked its price target on the UK national carrier up to 500 pence per share, on the back of the broker's increased earnings estimates and expectations that consensus forecasts will have to rise.
The broker said BA stands at a crucial point on the road to its goal of achieving a 10 pct operating margin by full-year 2008 which, with a strong revenue environment, capacity reduction and settlement on the pensions issue, the broker thinks is achievable.
Among those reporting, Aviva got off to a positive start, up 2-1/2 pence at 733, after the insurer met market expectations with a 27 pct increase in first-half profit, buoyed by robust sales growth in its domestic market.
Responding to the numbers, Merrill Lynch said they were 'good' but 'unsurprising' and reiterated its 'buy' advice on the stock.
The strong numbers also propelled a number of peers higher. Legal & General added a penny at 124-1/4, while Friends Provident was also a penny stronger at
176.
On the second line, Enodis stood out among the fallers, plunging almost 16 pct or 34 pence at 183 after announcing after the close yesterday that it has terminated talks with Manitowoc regarding a possible offer for the company.
Enodis said the two companies were unable to reach a mutually acceptable solution.
The kitchen equipment maker had already rebuffed a 210 pence share proposal from Manitowoc in May, while a rival 195 pence bid from another US group Middleby Corp was also rejected by the Enodis board.
On the economic data front, the BoE will today issue its quarterly inflation report this morning, while investors will also be eyeing UK June trade data.
The global goods trade deficit is expected to narrow to 6.2 bln stg from 6.8 bln in the previous month, while the UK's non-EU trade deficit is seen at 3.6 bln stg versus a wider 3.7 bln in May.
Across the pond, US wholesale trade data for June is expected to slow to 0.6 pct from 0.8 pct in the previous month, while weekly oil inventories could provide some direction for oil majors later in the session.
Forward Diary of Events:
For a breakdown of forthcoming events, click here
Small Caps Report:
For the most recent UK Small Caps summary, click here
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Paris |
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PARIS - Shares are expected to open higher in modest bargain-hunting as relief at the Fed's decision to freeze US interest rates last night was offset by indications this may only be temporary, dealers said.
Yesterday, the CAC-40 index ended up 11.61 points or 0.23 pct at 4,967.95.
On the Matif, August CAC-40 futures were trading up 18.5 points at 4,990 ahead of the official opening, and the euro was at 1.2825 against the dollar compared to 1.2838 late yesterday.
FORTHCOMING EVENTS TODAY
-June budget performance 8.45 am
-SR Teleperformance Q2 sales (EQUITYNEXT)
-Euronext Q2 sales
-Infogrames Q1 results
TOMORROW
-Bouygues Q2 sales
-Provimi Q2 sales
-Groupe Steria Q2 sales
-June industrial production 8.45 am
-June trade balance 8.45 am
-Euronext shares go ex-super dividend
-AGF H1 results, after market close
COMPANY NEWS
-Eiffage H1 sales up 25.8 pct, boosted by APRR buy, above consensus
-Pernod Ricard says to sue over the refusal of application to renew Havana
Club rum trademark in US; to sue any group that markets non-Cuban rum under that name in the US
-Bacardi plans to relaunch Havana Club rum brand in US
-Euronext Q2 sales 289.6, up 21.4 pct, lifted by strong cash, derivatives
ops
-NYSE's Thain sees merger with Euronext completed in Q1 2007
-Airbus 7-mths orders total 200, deliveries 253, trailing Boeing
POLITICS/MACROECONOMIC/MISCELLANEOUS
-France says new Mideast ceasefire resolution being prepared
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FRANKFURT |
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German shares at a glance outlook
FRANKFURT - Leading German shares were expected to open higher this morning as lower oil prices plus solid results from Adidas and the Fed's decision to leave interest rates on hold at last night's FOMC meeting lifted sentiment following recent uncertainty, dealers said.
According to Lang & Schwarz the DAX is seen opening around 18 points firmer at 5,669, having closed up 23.25 points or 0.45 pct to 5651.92 on Tuesday.
FORTHCOMING EVENTS TODAY
-EnBW Q2 results, investors teleconference
-Adidas Q2 results press conference call (10.00 am)
-Lufthansa July traffic figures (1.00 pm)
-KarstadtQuelle Q2, press conference (10.00 am)
-DIW economic barometer for August (11.00 am)
TOMORROW
-July WPI
-Salzgitter H1 results, analysts conference
-RWE Q2 results (10.00 am)
-Bilfinger Berger Q2 results
-Deutsche Telekom Q2 results
-TUI Q2 results
-GEA Group Q2 results
-STADA Q2 results, press conference, analysts meeting
-WestLB Q2 results
TODAY'S PRESS
-EU probes Deutsche Bahn's valuation of real estate assets (Handelsblatt)
-German govt postpones approval of draft law on tax reform until Aug 23 (Handelsblatt)
-Ryanair plans to set up a new hub in Bremen (Handelsblatt)
-Luebeck court says airport fee cuts for Ryanair are not legal (Die Welt)
-Loewe suffers due to price cuts in TV (Financial Times Deutschland)
-IPO candidate DGAG boosts FY net by 50 pct (Financial Times Deutschland)
-Hannover Re mulls buying Scottish Re (Financial Times Deutschland)
COMPANY NEWS
-COMMERZBANK Q2 TRADING INCOME 355 MLN EUR VS 20 MLN
-COMMERZBANK Q2 NET COMMISSION INCOME 659 MLN EUR VS 629 MLN
-COMMERZBANK Q2 NET COMMISSION INCOME 659 MLN EUR VS 629 MLN
-ADIDAS Q2 SALES 2.428 BLN EUR VS 1.516 BLN; CONSENSUS 2.364 BLN
-ADIDAS Q2 OPG 173 MLN EUR VS 152 MLN; CONSENSUS 152.4 MLN
-ADIDAS Q2 NET 82 MLN EUR VS 66 MLN; CONSENSUS 74.8 MLN
-HYPO REAL ESTATE H1 NET 270 MLN EUR, UP 26 PCT
-HYPO REAL ESTATE Q2 OPG 136 MLN EUR VS 113 MLN; CONSENSUS 138 MLN
-HYPO REAL ESTATE Q2 NET INTEREST INCOME 191 MLN EUR VS 165 MLN
-Software AG has 100 mln eur for M&A, dividends or buybacks - CFO
-Qimonda IPO to raise 546 mln usd from NY listing of ADS priced at 13 usd
MARKET NEWS/SENTIMENT
-Commerzbank down pre-open as second quarter earnings mix disappoints
-Adidas seen higher at open, Q2 beats consensus, raises guidance
-MLP downgraded to 'neutral' from 'overweight' at HSBC with a lowered price
target of 15.50 eur from 22.80 previously, following the financial services
provider's profit warning earlier this week
-Fraport downgraded to 'neutral' from 'overweight' at HSBC following a
strong recent share price performance
-Rheinmetall price target cut to 66 eur versus 74 at Citigroup
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London 0824 GMT
US dollar
yen 115.10 down from 115.58
sfr 1.2232 down from 1.2300
Euro
usd 1.2868 up from 1.2797
stg 0.6739 up from 0.6734
yen 148.20 up from 147.90
sfr 1.5735 down from 1.5744
Sterling
usd 1.9087 up from 1.9011
yen 219.79 up from 219.69
sfr 2.3344 down from 2.3377
Australian dollar
usd 0.7628 up from 0.7571
stg 0.3992 up from 0.3982
yen 87.80 up from 87.54
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+44 (0) 870 794 0236
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