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ETX Capital’s team of analysts provide a daily briefing and global market report to keep you informed as you trade. To get From the Floor delivered directly to your inbox each morning please apply for an ETX Capital account.
ETX Capital - UK Market Snapshot: UK markets extended their losses for the fifth straight day, closing lower on Friday, as worsening debt crisis in Europe and signs of a slowdown in China, weighed on market sentiment. Broadcaster, ITV dropped 3.7%, as HSBC assigned an “Underweight” rating to the stock. Lloyds Banking Group, the top decliner on the FTSE 100 index, dropped 6.2%, while Barclays and Royal Bank of Scotland retreated 3.2% and 5.1%, respectively, amid concerns over their exposure to Spain and the rest of eurozone. Miners, BHP Billiton, Anglo American, ENRC, Rio Tinto, Vedanta Resources and Xstrata dropped between 1.2% and 4.3%, after China’s State Information Centre forecasted a slowdown in the country’s economy for the second quarter. Man Group declined 4.1%, after Standard & Poor’s downgraded the stock to “Negative” from “Stable”, while Burberry Group slipped 4.2%, amid concerns over its Chinese exposure. FTSE 100 shed 1.3% to settle at 5,267.6, while FTSE 250 tumbled 1.5% to close at 10,431.9.
European Market Snapshot: Other European markets slid on Friday, amid concerns that China’s economic growth might falter and Greece might leave the euro bloc, escalating the region’s debt crisis. BMW, Volkswagen and Porsche dropped between 2.0% and 2.4%, after China’s car dealerships reported a rise in inventory levels in the country, while Volvo lost 4.6%. Exporters, LVMH and Pernod-Ricard fell 2.0% and 3.9%, respectively, amid concern that a slowdown in China’s economy would affect demand. Industrial sector stocks, EADS, Man Se and Lafarge dropped between 0.7% and 3.3%, after their US peer, Caterpillar reported slowing growth in sales. However, losses were limited by gains in banking sector stocks amid speculation of a European ban on short selling. BNP Paribas and Societe Generale gained 2.9% and 2.3%, respectively. FTSEurofirst 300 index declined 1.1% to 970.2. German DAX Xetra 30 eased 0.6% to 6,271.2. French CAC-40 closed 0.1% lower at 3,008.0.
US Market Snapshot: US markets ended lower on Friday, amid continued concerns about the European debt crisis and as Facebook’s debut on Wall Street failed to live up to investors expectations. Design software maker, Autodesk tumbled 12.9%, as the firm forecasted lower earnings for the second quarter. Nasdaq OMX group dropped 4.4%, following a technical snag in the debut of Facebook IPO. Hewlett-Packard, the top laggard on the DJIA index, declined 2.7%, as it mulled to cut up to 30,000 jobs amid dwindling demand for personal computers. JPMorgan lost 1.3%, following a report in The Wall Street Journal that the bank’s trading losses would total as much as $5 billion, surpassing initial estimate of $2 billion. Internet firms, Groupon, Pandora Media and Zynga dropped between 6.7% and 13.4%. DJIA shed 0.6% to 12,369.4. NASDAQ tumbled 1.2% to 2,778.8. S&P 500 slipped 0.7% to 1,295.2.
Asian Market Snapshot: Asian markets are trading mostly higher this morning, on hopes that the Chinese government might announce further quantitative easing to stimulate the country’s economic growth. In Japan, Fanuc gained value, following report that the company has planned to boost its production of numerical-control equipments. Inpex and Japan Petroleum Exploration paced higher, in line with a rise in crude oil prices. In Hong Kong, YGM traded lower, after the company reported lower-than-expected sales growth in China in past two months. In South Korea, exporters, Samsung Electronics, Kia Motors and LG displays paced gains, reversing their earlier session losses, as worries eased after world leaders pledged to keep Greece in the eurozone. Nikkei 225 index is trading 0.3% higher at 8,633.9. Hang Seng index is trading 0.4% lower at 18,871.8, while the Kospi index is trading 0.7% higher, at 1,794.6.
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Daily news summary
Download our daily news summary to read key newspaper headlines affecting the financial markets each day. To get ETX Capital’s daily news summary delivered directly to your inbox, please apply for an ETX Capital account.
ETX Capital - The Times - Gilts: The yield on ten-year gilts hit a new record low, falling another basis point to 1.83%, as investors continued to run scared of Europe’s debt crisis and hunt safer homes for their money. The June gilt future settled 24 ticks higher at 118.81 after a credit rating agency downgraded Spanish lenders and fears grew that Greece would leave the Eurozone.
Bet of the day: As Facebook made its high-profile debut on Wall Street, spread-betters looked to back other social media companies on its coat-tails. One was LinkedIn, the networking site for professionals. After six months on the back foot, it is now comfortably beating expectations and charging towards its best.
Tiddler to watch: Condor Resources jumped 10.3% to 4p. It declared itself “really pleased” with tests on gold samples from its La India project in Nicaragua, after the latest encouraging update in the past few months. Like many smaller exploration companies, the shares have more than halved this year as investors lost their appetite for risk.
Insurers call for action to halt rise of metal thieves: Days after a gang stole a plaque commemorating victims of the 1993 Warrington bombings, the insurance industry will detail this week the financial impact of metal theft for the first time.
Investors’ allies fear their guns may be spiked: Three leading companies could fall foul of investor uprisings this week as shareholders press ahead with an unprecedented round of protests over pay and perks for bosses.
Value of an all-night vigil: Ecclesiastical Insurance, which specialises in providing cover for the nation’s churches, has received more than 10,400 metal theft claims since January 2007 — costing more than £26.5 million in payouts.
London market bucks the trend and trades up: London is the only part of Britain where trading up to a bigger home is the main motivation for selling a property, providing further evidence of the two-speed housing market.
African miner turns to the City’s rich seam of cash: An incubator for small African mining projects is the latest natural resources company to head towards a flotation on London’s Alternative Investment Market.
Not Nasdaq’s finest hour: Nasdaq’s Chief Executive has admitted that the exchange’s technology may have hampered Facebook’s groundbreaking flotation last week, according to reports in the United States.
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Sunday news summary
ETX Capital’s sunday news summary provides a downloadable weekly newsletter with key headlines in popular newspaper titles for the day. To have this delivered directly to your inbox each Sunday please apply for an ETX Capital account.
ETX Capital - The Sunday Times—
-Revolts at Shell and HSBC: HSBC and Shell are expected to feel the heat of the “shareholder spring” this week after an influential adviser urged investors to vote down their pay plans
-Broadgate guru eyes Battersea: A consortium comprising one of the best-known property men of the 1980s, a super-rich South African family and the billionaire Reuben brothers, is bidding for Battersea power station, writes Oliver Shah
-Anglicans embrace Mammon to beat pension crisis: The church needs cash after a poor run of investments left a big deficit in the funds for retired members of the clergy
-France to rescue mortgage giant: A new front opens in the Eurozone crisis as the funding squeeze pushes a €33 billion French lender to the brink of collapse
-Rain drenches retail revival hopes: Households could gain some welcome respite this week with figures expected to show that inflation fell in April
-Irish bailout fears: Ireland could be forced to seek a second bailout because of mounting losses in its banking industry, according to a bank
-Credit Suisse puts JO Hambro on the block: Credit Suisse has quietly hung a ‘for sale’ sign over JO Hambro Investment Management, the upmarket wealth manager it bought in 2001
-Banned Verrier still works for broker: The trader who was handed a lifetime ban from the city is still being employed by the broking giant BGC Partners
-JP Morgan’s home loans bet: The secretive operation behind JP Morgan’s trading losses has propped up all its new British mortgages over the past four years
-Manduca to take over as Prudential Chairman: Paul Manduca, the City fund management veteran, is in line to become Prudential’s new Chairman, replacing Harvey McGrath
-Oil refinery faces closure: Nearly 1,000 jobs hang in the balance as the administrator to the Coryton refinery in Essex scrambles to find a new owner
-Rail fat cats send £700 million to offshore tax havens: The three companies that own Britain’s trains have paid their offshore owners almost £700 million in dividends since 2008
-Gravy train still runs for rolling stock’s fat controllers: Investors in leasing companies are taking huge dividends through opaque offshore operations, prompting calls for a shake-up
-Speaker firm sounds out buyers: A maker of sound systems that powered Pink Floyd and the Who could soon be sold by its American backer for about £40 million
-Market probe after Facebook charge: America’s stock market watchdog has launched an investigation into the series of glitches that marred Facebook’s float
-Canon in the frame to prop up Jessops stores: Canon, the giant Japanese camera maker, is to enter the ailing British high street with a deal to prop up Jessops
-WPP’s Sir Martin Sorrell: The advertising boss faces another pay row, with investor unrest over his £13 million package. If it is voted down, he could be in a fix
-Papers besieged by online hordes: In America, newspaper advertising revenues have fallen by more than half since 2000. In Britain it plummeted by a third
-Hutchison threat to quit mobile market: The Hong Kong owner of the 3 phone network seeks special treatment in the forthcoming ‘4G’ airwaves auction
-Vodafone bumps up dividend: Vodafone will unveil an inflation-busting increase in investor payouts, cementing its status as Britain’s biggest dividend payer
-Goldfinger checks in to rescue ailing Jurys Inn chain: A former star trader at Goldman Sachs nicknamed ‘Goldfinger’ is poised to become a big investor in the hotel chain Jurys Inn
-Jeweller hooked on 20 big spenders: Britain’s top jeweller, Graff Diamonds, relies on only 20 high-rollers for almost half of its $755 million annual sales
-Bolland strug
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