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 19-02-2007
02/19/2007
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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 |
London shares open higher, Sainsbury up on reheated M&A talk, miners firm Leading shares climbed higher in early deals, with fresh M&A talk surrounding Sainsbury and buyback hopes for Anglo American helping the FTSE 100 reach fresh 6-1/4 year highs this morning, dealers said. By 9.05 am, the FTSE 100 index was up 18.2 points at 6,437.7, its highest level since November 2000, while the broader indices also started the week on the front foot. US blue chips managed to end higher on Friday, regaining some poise after a larger-than-expected drop in housing starts gave Wall Street an early fright, traders said. The DJIA ended 2.56 points higher at yet another record close of 12,767.57 ahead of the Presidents Day holiday weekend. Broader stock indicators fell however, with the S&P 500 index dropping 1.27 points to 1,455.54 and the Nasdaq ending 0.79 points lower at 2,496.31. Overnight in Asia, the Nikkei 225 index closed 64.44 points at 17,940.09. The Hang Seng was closed for Chinese New Year celebrations. It looks like being another busy week ahead for earnings in the UK, with the banking sector's reporting season getting underway. Barclays, Alliance & Leicester and Lloyds TSB are all due to post results over the next five days and analysts expect a mixed bag of figures. Elsewhere, a raft of blue-chips are all due to report figures, with numbers expected from Intercontinental Hotels, Rexam, Scottish & Newcastle, Anglo American, BAE Systems, Centrica, Hanson, Shire, WPP and Rentokil. However, with no major company releases for today, investors turned to the weekend press for inspiration. Anglo American topped the early risers with a gain of 37 pence to 2,575, helped by a report in yesterday's Sunday Times that Russia's Polyus Gold has made an approach to buy the miner's 2.25 bln stg stake in Anglo Gold Ashanti.
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Today's Financial Times meanwhile, reported that Anglo American is expected to accompany Wednesday's interim results with news of a share buy-back plan that would return up to 4 bln stg. Firm commodity prices also lifted the sector, with Lonmin up 42 pence at 3,238, Rio Tinto adding 22 pence to 2,821 and BHP Billiton gaining 7 pence to 1,096-1/2. Sainsbury was the top riser in early deals however, up 6-3/4 pence at 510-3/4 after yesterday's Sunday Telegraph reported that a secretive Middle Eastern investment fund that owns a stake in the food retailer has discussed a potential joint bid for the UK's second biggest supermarket chain with Stuart Rose, the head of Marks & Spencer. Resolution shares were also in demand this morning, up 5-1/2 pence at 677, amid M&A activity in Switzerland and London. Swiss insurer Converium announced this morning that its board of directors have rejected an unsolicited offer by French reinsurer SCOR of 21 sfr per share, valuing the group at 3.1 bln sfr. Also helping the shares was a report in yesterday's Mail on Sunday that Lloyds TSB is putting its Abbey Life insurance subsidiary up for sale with an expected price tag of about 1 bln stg, adding that the sale is expected to attract bids from major players, including Resolution, Swiss Re and Pearl Group. Property stocks were also a firm feature after the Sunday Times advised readers to look out for mergers in the sector, highlighting Hammerson, up 18 at 1,676, and Shaftesbury, up 4 pence at 807, as potential M&A candidates. On the downside, a clutch of broker downgrades weighed, with United Utilities, Reed Elsevier, Centrica and AB Foods all hit by negative comment. United Utilities dropped 14-1/2 pence to 755-1/2, after Goldman Sachs cut its rating to 'sell' from 'neutral', with a reduced target of 520 pence from 554 on valuation. Reed Elsevier fell 8 pence to 628 after being downgraded to 'hold' from 'buy' by Citigroup, while ING's rating on Centrica, down 3 pence at 372, went the same way, both also on valuation grounds.
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AB foods meanwhile, lost 9-1/2 pence to 820-1/2, as Deutsche Bank lowered its stance on the group to 'hold' from 'buy', noting that fundamentals in sugar are "looking challenging". Fellow sugar producer Tate & Lyle eased 1-1/2 pence to 591. On the second line, Enterprise added 40-1/2 pence to 571-1/2, following a report in today's Telegraph newspaper that the cleaning and maintenance group's board has accepted a 486 mln stg, or 605 pence-a-share, bid from private equity house 3i. In reaction, Bridgewell reiterated its 'neutral' stance, noting that the reported deal price represents a hefty premium for a company which is still in recovery mode. On the economic front, it looks like being a quiet week for news in a holiday-shortened week in the US. Wednesday's US January CPI data should provide the highlight, although Thursday's weekly jobless data should also provide clues as to the health of the world's largest economy. In the UK, Tuesday's money supply data for January and Wednesday's CBI industrial trends data will be closely eyed.
UK Diary of Events
For a diary of key financial and corporate events in the UK today, click here
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 9.25 am:
Major indices: CAC-40 up 7.60 points or 0.13 pct at 5,721.19 SBF-80 up 8.59 points or 0.12 pct at 7,098.75 SBF-120 up 5.67 points or 0.14 pct at 4,192.84
Volume: 296 mln eur 15 CAC-40 stocks up 22 CAC-40 stocks down 3 CAC-40 stocks unchanged
Major gainers: EADS, up 0.38 eur or 1.51 pct at 25.50, ahead of tomorrow's Airbus restructuring announcement. Press reports have said it may involve cutting as many as 12,000 job. Michelin, up 1.10 eur or 1.33 pct at 83.70, extending Friday's gains amid the company's positive outlook for 2007. Peugeot, up 0.49 eur or 0.95 pct at 52.29, after an upgrade by UBS to 'neutral' from 'reduce.'
Major losers: Vivendi, down 0.19 eur or 0.61 pct at 31.01 Lagardere, down 0.25 eur or 0.42 pct at 59.65 Alstom, down 0.33 eur or 0.34 pct at 96.72
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Amsterdam |
Amsterdam shares AFX at a glance outlook
Forthcoming Events Wednesday Numico Q4 figures, news conference Heineken FY results, news conference Hagemeyer FY results, news conference
Company News DSM buys stake in Harland Medical Systems of the US for undisclosed amount Philips to up investment in green products by 100 mln eur/yr over coming years Nutreco buys BASF animal blends ops in 8 countries for undisclosed sum Philips to propose reappointing president, CEO Gerard Kleisterlee, for further 4 years Volkswagen eyes Netherlands as possible headquarters for heavy truck operations Market Sentiment Reed Elsevier downgraded to 'hold' from 'buy' by Cititgroup, target 650p vs 600.
KPN upgraded to 'overweight' from 'neutral' by JP Morgan.
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There is Life after Shares |
According to The Times newspaper, one of our products rose in value by 90%* last year and our market outstripped the FTSE 100 by 36.1 %.*
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*Source The Times, December 15th 2006
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Forex |
London 0930 GMT |
Sydney 0605 GMT |
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US dollar |
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yen 119.64 |
up from |
119.44 |
sfr 1.2341 |
up from |
1.2336 |
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Euro |
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usd 1.3138 |
down from |
1.3156 |
sfr 0.6214 |
down from |
0.6229 |
yen 157.18 |
up from |
157.14 |
stg 0.6735 |
up from |
0.6731 |
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Sterling |
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usd 1.9590 |
up from |
1.9546 |
yen 233.40 |
up from |
233.32 |
sfr 2.4075 |
down from |
2.4101 |
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Australian dollar |
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usd 0.7867 |
down from |
0.7881 |
stg 0.4032 |
up from |
0.4031 |
yen 94.08 |
down from |
94.100 |
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Advfn Plc, 26 Throgmorton Street, London, EC2N 2AN +44 (0) 870 794 0236
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