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 |  Subject: ADVFN Morning Euro Markets Bulletin : April, 9th 2010  Fri Apr 09, 2010 8:57 am | |
| by ADVFN.comADVFN offer FREE streaming stocks and shares data form around the world. SEE | London Market Report |
Miners up on quiet day
Market Movers
techMARK 1,667.62 +0.45%
FTSE 100 5,764.42 +0.91%
FTSE 250 10,436.62 +0.55%
Miners are giving London’s top stocks a lift on a relatively quiet day on the company news front. Xstrata is leading the way, closely followed by Kazakhmys, Antofagasta, Anglo American and Eurasian Natural Resources.
Mining giant Rio Tinto is also up after it said it is in talks with several of its iron ore customers about moving to quarterly pricing of iron ore contracts. The move comes after rivals BHP Billiton and Vale switched to shorter term pricing arrangements.
Recruitment firm Michael Page said gross first quarter profit is up 2.9% on the same period last year and 8% higher on the last quarter of 2009. "The improvement in our performance has been driven largely by greater permanent recruitment activity, as confidence levels have increased leading to a higher rate of job churn, and a stronger than expected performance in the UK," said Michael Page chief executive Steve Ingham.
D1 Oils said it continues to be ‘actively engaged’ in a series of discussions with third parties regarding the provision of material levels of equity finance which may include the possibility of an offer being made for the biofuels group. However, the group cautioned that there can be no certainty that an offer will be made for the company or any equity financing will result.
Construction group Galliford Try has won a contract worth up to £500m with Thames Water to upgrade water and waste water treatment facilities in the London region.
Intellectual property group RWS Holdings is on track to meet market expectations for the full year but said its technical translations teams, especially in Germany, have experienced severe trading conditions.
US based bio-refining company GTL said trading in the second half “substantially exceeded” first half, while full year figures should be “significantly” ahead of market expectations.
Recycling bin maker Straight has been chosen as a supplier of plastic wheeled bins to a consortium of local authorities in a contract that could generate revenues of more than £4m.
FTSE 100 - Risers
Xstrata (XTA) 1,293.00p +2.38%
Kazakhmys (KAZ) 1,589.00p +2.06%
Cairn Energy (CNE) 432.10p +1.98%
Lloyds Banking Group (LLOY) 63.70p +1.82%
Antofagasta (ANTO) 1,064.00p +1.82%
Next (NXT) 2,280.00p +1.74%
Anglo American (AAL) 2,956.00p +1.70%
Eurasian Natural Resources (ENRC) 1,230.00p +1.65%
Rio Tinto (RIO) 3,969.50p +1.65%
InterContinental Hotels Group (IHG) 1,050.00p +1.65%
FTSE 100 - Fallers
RSA Insurance Group (RSA) 128.70p -0.16%
Shire Plc (SHP) 1,448.00p -0.14%
Inmarsat (ISAT) 746.50p -0.13%
Schroders NV (SDRC) 1,167.00p -0.09%
AstraZeneca (AZN) 2,931.50p -0.09%
GlaxoSmithKline (GSK) 1,273.00p -0.04%
Schroders (SDR) 1,439.00p -0.00%
BT Group (BT.A) 122.40p +0.08%
ICAP (IAP) 384.90p +0.13%
Vodafone Group (VOD) 148.65p +0.13% |
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| | UK Event Calendar for today |
INTERIM DIVIDEND PAYMENT DATE
Cassidy Brothers
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Wholesales Inventories (US) (14:00)
GMS
Gladstone Pacific Nickel
FINALS
Zhaikmunai GDR (Reg S)
ANNUAL REPORT
Chesnara, John Menzies, Mercantile Inv Trust, Morson Group
IMSS
Michael Page International
AGMS
Hygea VCT, Vatukoula Gold Mines
TRADING ANNOUNCEMENTS
John Menzies, Michael Page International, X5 Retail Group GDR (Reg S)
UK ECONOMIC ANNOUNCEMENTS
Producer Price Index (08:30)
FINAL DIVIDEND PAYMENT DATE
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| | European, Currencies Market |
Trichet comments buy Euro some time
Greece's woes continue to take centre stage as CDS spreads on Greek debt continue to hit new highs. Trichet's comments suggesting Greece won't default have pulled the Euro off its lows, and soothed some investor fears, but it’s hard not to see how this won't just delay the inevitable and push the Euro below its lows at 1.3270.
Trichet has no power whatsoever in this sorry saga to control events and this is part of the problem. Any solution remains in the hands of the prevaricating politicians who, in Germany’s case have more local concerns in mind, mainly voter disapproval of any money going Greece’s way.
So called European unity on this subject has not been helped by an intervention by the Bundesbank who have heavily criticised the so-called joint EU/IMF rescue deal agreed last month.
This bickering merely serves to highlight the reasons for the current market concerns. The market is basically saying to the politicians, you’ve agreed this bailout last month; the details remain sketchy, "show me the money"!
The politicians bluff has now been called.
Sterling on the other hand continues to remain fairly firm, albeit on the sidelines after production data came in above market expectations yesterday while house price data for March showed an increase of 1.1%.
Today’s producer price data will give further indications of whether or not inflation continues to edge lower as suggested by the Bank of England’s price forecasts. Consensus forecasts suggest otherwise as PPI data is expected to have risen by 1.3% month-on-month in March, thereby causing the year-on-year increase to be 7.1%.
NIESR data on growth also showed that the UK grew by around 0.4% in the first quarter of 2010.
Yesterday’s decision to leave interest rates unchanged here and in Europe, barely raised an eyebrow.
US weekly jobless almost passed un-noticed with the markets eyes on Greece, but they showed a surprise increase of 18k to hit 460k to highlight Bernanke's comments last night that the US is not out of the woods yet with respect to the economy.
EURUSD – the Euro re-tested last months lows at 1.3270/80 yesterday but managed to rebound from them as Trichet’s comments prompted some profit-taking on Euro short positions. However the single currency continues to be weighed down by negative sentiment as a result of the ongoing problems in Greece. The Euro will remain susceptible to rallies back to the key down channel line on the topside around the resistance level above 1.3500 from the highs at 1.5145. While below this level the risk remains for further weakness, while a break above could well target the March highs around 1.3800.
The immediate risk remains for a break below yesterday’s lows and support at the 1.3270/80 area, and further declines towards 1.3000.
GBPUSD – the pound continues to maintain its fairly firm tone after yesterday’s positive economic data. Today’s PPI data should determine whether this remains to be the case. The broader range between the 1.5370/80, the highs in March, and the intraday support at 1.5120 as well as the broader lows below 1.5000 remains the play for now. The 50 day moving average at 1.5315 could also act as some resistance as well. A break above these highs could act as a catalyst for further gains towards the 8th February lows at 1.5530. While below 1.5370/80 the broader 1.4800/1.5300 range remains intact with support around 1.5120.
EURGBP – the euro continues its slow drift lower after breaking the 200 day moving average at 0.8875 earlier this week. This should continue to cap the Euro and push the cross lower, and the euro now looks as if it could well test towards the February lows at 0.8660 initially, while the January lows at 0.8602 in the longer term. Resistance can also be found at 0.8780.
USDJPY – yesterday’s rebound from the 92.80 area continues to push towards resistance initially at the 93.70/80 area. A break of 92.80 would target 92.30 which would be a 38.2% pullback of the up move from the lows at 88.10 to the peaks this week at 94.78.
The 7 month high this week at 94.78 as well as 95.10, remain key resistance levels and are the barriers to further gains. |
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| | US Market |
Major Averages Close Modestly Higher After Seeing Initial Weakness
With traders shrugging off concerns about the labor market and the Greek debt crisis, stocks showed a substantial turnaround over the course of the trading day on Thursday. After moving notably lower at the open, the major averages bounced well off their worst levels and into positive territory.
The initial weakness was partly due to the release of a report from the Labor Department showing an unexpected increase in initial jobless claims in the week ended April 3rd, although the increase was partly due to seasonal adjustments related to the Easter holiday and Cesar Chavez Day in California.
Airline stocks helped to lead the way back to the upside following reports that United Airlines parent UAL Corp. (UAUA) and US Airways (LCC) are in merger talks. The NYSE Arca Airline Index surged up by 3.3 percent, ending the session at its best closing level in over two years.
Significant strength also emerged among retail stocks, which benefited from the release of strong same store sales data from a number of retailers. Banking, railroad, and trucking stocks also showed notable upward moves on the day, while considerable weakness remained visible among semiconductor stocks.
The major averages gave back some ground going into the close but managed to hold onto modest gains. The Dow closed up 29.55 points or 0.3 percent at 10,927.07, the Nasdaq closed up 5.65 points or 0.2 percent at 2,436.81 and the S&P 500 closed up 3.99 points or 0.3 percent at 1,186.44. |
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| | Friday newspaper round-up |
Aviva, Petrol, Rio Tinto
Aviva, the UK insurance group, is to re-enter the Asian general insurance market in the second major move in the region by a British insurer in two weeks. The group, which has a substantial Asian life insurance business, will announce on Friday that it plans to re-enter the general market five years after selling its Asian general insurance business to Japan’s Mitsui Sumitomo Insurance for $450m, says the FT.
Average petrol prices hit an all-time high of 120p a litre yesterday, surpassing the previous peak of 119.7p in July 2008. The unwelcome new record came a few days after the Government raised fuel duty by 1p a litre. A further 1p rise is due in the autumn, with a 0.76p increase planned for next January, writes the Independent.
Rio Tinto said on Friday it had moved to quarterly pricing of iron ore contracts, becoming the latest large miner to dump annual price-fixing, in spite of widespread opposition from buyers worldwide, reports the FT.
Gordon Brown pushed through next year’s planned rise in national insurance against the advice of senior Treasury officials who argued instead for an increase in VAT, the Times has learnt.
The Telegraph added that Gordon Brown has pledged to crack down on inflated bank bonuses and stop City workers from taking risks which put the economy in danger.
David Cameron’s efficiency chief has told him to cut the public payroll by up to £2bn within a year of the general election, a saving that could lead to the loss of up to 40,000 jobs across the public sector. In an interview with the Financial Times, Sir Peter Gershon, the former government adviser who has provided the blueprint for the Conservative leader’s efficiency plans, disclosed for the first time how the party’s proposed £12bn savings should be achieved.
Germany's Bundesbank has fired a warning shot at Chancellor Angela Merkel, attacking the joint EU-IMF rescue plan for Greece as a threat to economic stability and probably illegal, according to the Telegraph.
Kraft Foods has thrown its support behind a national chain of Cadbury-branded cafés that will offer afternoon teas and a dedicated chocolatier service to compete with high street coffee shops, says the FT.
One of London’s biggest hedge funds has quit the UK for tax purposes as the Government continues to fight for the confidence of corporate Britain. BlueCrest Capital Management, which manages about $18 billion (£11.8 billion) and employs 350 staff, said in a letter to investors yesterday that it has relocated its tax headquarters to the low-cost jurisdiction of Guernsey, writes the Times. |
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