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Finance & Stock Market News
Glance-UK's FTSE slips, waiting for U.S. jobs report
Fri, 6th Jul 2012 09:15
* FTSE 100 index sheds 0.2 percent
* Strong U.S. jobs report could be good or bad
*
By Jon Hopkins
LONDON July 6 (Reuters) - Britain's top share index fell in
early trade on Friday, with investors cautious ahead of key U.S.
jobs data, worried that an encouraging report might lower the
chance of another round of policy action in the United States.
Some analysts have upgraded their forecasts for U.S. June
non-farm payrolls numbers, due at 1230 GMT, following Thursday's
U.S. private sector jobs data which came in much better than
expected. The ADP report showed an addition of 176,000 job last
month, against a forecast of 105,000.
Credit Agricole revised its prediction for non-farm payrolls
to 135,000 from 100,000, while Goldman Sachs hiked its forecast
to 125,000 from 75,000. A Thomson Reuters survey published
earlier this week had predicted an addition of 90,000 workers.
'If the figure today is equal to or greater than
expectations, then the market will simultaneously discount a
diminished chance of QE (quantitative easing) by the U.S. with
an improvement or stabilising to outlook, with the potential
outcome to prices likely to be a paradoxical equilibrium of both
good and bad news,' said David White, Financials Trader at
Spreadex.
At 0746 GMT, the FTSE 100 index was down 10.05
points, or 0.2 percent, at 5,682.58, having closed 0.1 percent
higher on Thursday.
Early volume was very thin, however, at less than 5 percent
of the 90-day daily average, as most investors preferred to
stick to the sidelines ahead of the U.S. data.
Weakness in energy stocks and miners were the main drags on blue chip sentiment as
commodity prices fell on demand concerns, with cautious broker
comment also weighing on the miners.
Societe Generale said more earnings downgrades could be on
the way for the miners and repeated its 'underweight' stance on
the sector, as the broker fears an expected rebound in China
activity will fail to materialise.
Moves by central banks in China, Europe and Britain on
Thursday to loosen monetary policy in an attempt to boost
flagging global growth ended up spooking investors, who saw the
measures as a sign of growing alarm about the global economic
slowdown.
'The decisions on the part of the Bank of England to extend
its asset purchase programme ... and the ECB to cut its rate (on
Thursday) ... were both expected and the buzzword today seems to
be diminishing returns and the fact the central banks are
running out of ammo,' said Andrew Crook, trader at Sucden
Financial.
BROKER ACTION
Downgrades in ratings by Morgan Stanley, in a review of
European Business Services groups, weighed on two of the biggest
individual blue chip fallers - plumbing supplies firm Wolseley and testing equipment group Intertek, which
lost 1.5 percent and 1.4 percent respectively.
'Business Services is a stock-picking sector not a
need-to-own. For 2H12, we see the most attractive opportunities
among the underperforming areas of the last 18 months: staffing,
outsourcing and value,' Morgan Stanley said.
Broker comment also had a positive impact for some blue
chips, with insurer Aviva, the top FTSE 100 gainer - up
3.2 percent - helped by an upgrade in rating from Societe
Generale to 'hold' from 'sell'.
SocGen's move came in the wake of a strategy review by
Aviva, unveiled on Thursday, which saw Britain's No.2 insurer
plan to sell or close more than a quarter of its businesses.
Aviva kicked off that programme on Friday by selling part of
its stake in Dutch rival Delta Lloyd for 318 million
pounds ($494 million).
Ahead of Friday's key U.S. data, investors will eye British
wholesale inflation numbers, due at 0830 GMT, with PPI input
numbers seen falling 2.1 percent on the month, and PPI input
numbers forecast to be down 0.2 percent.
(Editing by Catherine Evans)
((jon.hopkins@thomsonreuters.com)(02075428954)(Reuters
Messaging: jon.hopkins.thomsonreuters.com@reuters.net))
Keywords: MARKETS BRITAIN STOCKS/
( For related prices, Reuters Terminal users may click on - * UK stock report .L/R FTSE index: techMARK 100 index: FTSE futures: Gilt futures: Smallcap index: FTSE 250 index: FTSE 350 index: Market digest: Top 10 by vol: Top price gainers: Top % gainers: Top price losers: Top % losers: * For related news, click on - * UK hot stocks: Wall Street: Gilts report: Euro bond report Pan European stock report: Tokyo stocks: HK stocks: Sterling report: Dollar report: * For company prices, click on - * Company directory: By sector: * For pan-European market data and news, click on - * Daily European stocks report........................ European Equities speed guide................ FTSE Eurotop 300 index........................... DJ STOXX index.....................)
COPYRIGHT
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Strong U.S. jobs report could be good or bad
*
Weak miners, energy stocks weigh
By Jon Hopkins
LONDON July 6 (Reuters) - Britain's top share index fell in
early trade on Friday, with investors cautious ahead of key U.S.
jobs data, worried that an encouraging report might lower the
chance of another round of policy action in the United States.
Some analysts have upgraded their forecasts for U.S. June
non-farm payrolls numbers, due at 1230 GMT, following Thursday's
U.S. private sector jobs data which came in much better than
expected. The ADP report showed an addition of 176,000 job last
month, against a forecast of 105,000.
Credit Agricole revised its prediction for non-farm payrolls
to 135,000 from 100,000, while Goldman Sachs hiked its forecast
to 125,000 from 75,000. A Thomson Reuters survey published
earlier this week had predicted an addition of 90,000 workers.
'If the figure today is equal to or greater than
expectations, then the market will simultaneously discount a
diminished chance of QE (quantitative easing) by the U.S. with
an improvement or stabilising to outlook, with the potential
outcome to prices likely to be a paradoxical equilibrium of both
good and bad news,' said David White, Financials Trader at
Spreadex.
At 0746 GMT, the FTSE 100 index was down 10.05
points, or 0.2 percent, at 5,682.58, having closed 0.1 percent
higher on Thursday.
Early volume was very thin, however, at less than 5 percent
of the 90-day daily average, as most investors preferred to
stick to the sidelines ahead of the U.S. data.
Weakness in energy stocks and miners were the main drags on blue chip sentiment as
commodity prices fell on demand concerns, with cautious broker
comment also weighing on the miners.
Societe Generale said more earnings downgrades could be on
the way for the miners and repeated its 'underweight' stance on
the sector, as the broker fears an expected rebound in China
activity will fail to materialise.
Moves by central banks in China, Europe and Britain on
Thursday to loosen monetary policy in an attempt to boost
flagging global growth ended up spooking investors, who saw the
measures as a sign of growing alarm about the global economic
slowdown.
'The decisions on the part of the Bank of England to extend
its asset purchase programme ... and the ECB to cut its rate (on
Thursday) ... were both expected and the buzzword today seems to
be diminishing returns and the fact the central banks are
running out of ammo,' said Andrew Crook, trader at Sucden
Financial.
BROKER ACTION
Downgrades in ratings by Morgan Stanley, in a review of
European Business Services groups, weighed on two of the biggest
individual blue chip fallers - plumbing supplies firm Wolseley and testing equipment group Intertek, which
lost 1.5 percent and 1.4 percent respectively.
'Business Services is a stock-picking sector not a
need-to-own. For 2H12, we see the most attractive opportunities
among the underperforming areas of the last 18 months: staffing,
outsourcing and value,' Morgan Stanley said.
Broker comment also had a positive impact for some blue
chips, with insurer Aviva, the top FTSE 100 gainer - up
3.2 percent - helped by an upgrade in rating from Societe
Generale to 'hold' from 'sell'.
SocGen's move came in the wake of a strategy review by
Aviva, unveiled on Thursday, which saw Britain's No.2 insurer
plan to sell or close more than a quarter of its businesses.
Aviva kicked off that programme on Friday by selling part of
its stake in Dutch rival Delta Lloyd for 318 million
pounds ($494 million).
Ahead of Friday's key U.S. data, investors will eye British
wholesale inflation numbers, due at 0830 GMT, with PPI input
numbers seen falling 2.1 percent on the month, and PPI input
numbers forecast to be down 0.2 percent.
(Editing by Catherine Evans)
((jon.hopkins@thomsonreuters.com)(02075428954)(Reuters
Messaging: jon.hopkins.thomsonreuters.com@reuters.net))
Keywords: MARKETS BRITAIN STOCKS/
( For related prices, Reuters Terminal users may click on - * UK stock report .L/R FTSE index: techMARK 100 index: FTSE futures: Gilt futures: Smallcap index: FTSE 250 index: FTSE 350 index: Market digest: Top 10 by vol: Top price gainers: Top % gainers: Top price losers: Top % losers: * For related news, click on - * UK hot stocks: Wall Street: Gilts report: Euro bond report Pan European stock report: Tokyo stocks: HK stocks: Sterling report: Dollar report: * For company prices, click on - * Company directory: By sector: * For pan-European market data and news, click on - * Daily European stocks report........................ European Equities speed guide................ FTSE Eurotop 300 index........................... DJ STOXX index.....................)
COPYRIGHT
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
