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Finance & Stock Market News
Glance-UK stocks rebound as focus shifts to U.S. jobs
Fri, 3rd Aug 2012 09:49
* FTSE 100 rallies 0.8 percent, regains 5,700 level
* RBS bounces back after broadly in-l
* IAG falls as full-year guidance cut
By Jon Hopkins
LONDON Aug 3 (Reuters) - Britain's leading share index rose
on Friday, recovering after sharp falls in the previous session,
with financial stocks bouncing back led by Royal Bank of
Scotland after its H1 results offered some comfort for
hard-pressed investors.
RBS was the top blue chip gainer, rallying 4.7 percent
following hefty falls in the previous session, as the
part-nationalised bank rounded off the UK banks first-half
reporting season with broadly in-line numbers, posting a first
half operating profit of 1.83 billion pounds, down from 1.97
billion the year before, broadly in line with
expectations.
The bank, which is 82 percent-owned by the government, also
confirmed it has dismissed a number of employees for misconduct
as a result of its investigations into the Libor interest rate
rigging scandal and, along with other banks, is still under
investigation by regulators.
'Given all of the distractions, the fact that RBS continues
to edge in the right direction at all is of some comfort to
investors,' Richard Hunter, Head of Equities at Hargreaves
Lansdown Stockbrokers said in a note.
'For the moment, there remains much to be done, during which
time the market consensus of a hold is unlikely to be disturbed
in either direction,' Hunter added.
RBS was among Thomson Reuters StarMine's lowest ranked
companies for earnings quality in the FTSE 100, with a score of
15 out of 100 prior to the release of these results, compared
with the sector median of 39.
That means its earnings growth is expected to be difficult
to sustain over the next 12 months based on what has contributed
to those earnings in the recent past.
Volume in RBS shares was solid, at 42.7 percent of the
90-day daily average after an hour and 15 minutes of trading.
At 0821 GMT, the FTSE 100 was up 45.13 points, or
0.8 percent at 5,707.33, recapuring the 5,700 level surrendered
following a 0.9 percent slide on Thursday which came after the
European Central Bank failed to deliver widely expected stimulus
measures to help tackle the euro zone debt crisis.
Investors in London shrugged aside that ECB disappointment
on Friday to focus on hopes that July's U.S. jobs data, due at
1230 GMT, could prompt the U.S. Federal Reserve to launch
further stimulus measures if they miss forecasts.
'There might be a feeling that maybe the move yesterday on
the ECB was overdone - I think we're getting a bit of a relief
off that, and as we've seen with the jobs figures in recent
months, whatever happens, the market tends to view it as good,'
David Jones, chief market strategist at IG Index said.
U.S. non-farm payrolls are forecast to rise by 100,000 in
July, after an 80,000 increase in June, with the unemployment
rate seen static at 8.2 percent.
'If we get a good number, it shows the economy's maybe
better than we thought. If we get a bad number, then people
think it's going to force the Fed's hand to do more QE,' IG
Group's Jones added.
IAG PAIN
International Airlines Group was by far the biggest
FTSE 100 faller, dropping 3.9 percent as Europe's fourth-biggest
airline group by market value - formed by the merger of British
Airways and Iberia - cut its full-year profit guidance citing a
poor performance from its Spanish unit and rising fuel costs.
The guidance cut came as IAG reported an operating loss of
253 million euros ($307.6 million) in the six months to the end
of June compared to a profit of 88 million euros in the same
period a year ago
'The statement indicates deep, structural problems at Iberia
and a restructuring plan is anticipated to be finalised by the
end of September. We await further details about this on the
conference call but it is clear that IAG as a stock will
struggle until more clarity is reached on its troubled Iberia
division,' Davy Stockbrokers said in a note.
Volume in IAG shares was strong, with the stock having
traded over 57 percent of its 90-day daily average by 0821 GMT,
while overall volume for the FTSE 100 index was moderate at 9.8
percent of the 90-day daily average.
(Additional reporting by Tricia Wright; Editing by Jon Hemming)
((jon.hopkins@thomsonreuters.com)(02075428954)(Reuters
Messaging: jon.hopkins.thomsonreuters.com@reuters.net))
Keywords: MARKETS BRITAIN STOCKS/
( For related prices, Reuters users may click on - * UK stock report 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, click on - * European Equities speed guide................ FTSE Eurotop 300 index........................... DJ STOXX index................................... Top 10 STOXX sectors........................ Top 10 EUROSTOXX)
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.
* RBS bounces back after broadly in-l
ine H1 results
* IAG falls as full-year guidance cut
By Jon Hopkins
LONDON Aug 3 (Reuters) - Britain's leading share index rose
on Friday, recovering after sharp falls in the previous session,
with financial stocks bouncing back led by Royal Bank of
Scotland after its H1 results offered some comfort for
hard-pressed investors.
RBS was the top blue chip gainer, rallying 4.7 percent
following hefty falls in the previous session, as the
part-nationalised bank rounded off the UK banks first-half
reporting season with broadly in-line numbers, posting a first
half operating profit of 1.83 billion pounds, down from 1.97
billion the year before, broadly in line with
expectations.
The bank, which is 82 percent-owned by the government, also
confirmed it has dismissed a number of employees for misconduct
as a result of its investigations into the Libor interest rate
rigging scandal and, along with other banks, is still under
investigation by regulators.
'Given all of the distractions, the fact that RBS continues
to edge in the right direction at all is of some comfort to
investors,' Richard Hunter, Head of Equities at Hargreaves
Lansdown Stockbrokers said in a note.
'For the moment, there remains much to be done, during which
time the market consensus of a hold is unlikely to be disturbed
in either direction,' Hunter added.
RBS was among Thomson Reuters StarMine's lowest ranked
companies for earnings quality in the FTSE 100, with a score of
15 out of 100 prior to the release of these results, compared
with the sector median of 39.
That means its earnings growth is expected to be difficult
to sustain over the next 12 months based on what has contributed
to those earnings in the recent past.
Volume in RBS shares was solid, at 42.7 percent of the
90-day daily average after an hour and 15 minutes of trading.
At 0821 GMT, the FTSE 100 was up 45.13 points, or
0.8 percent at 5,707.33, recapuring the 5,700 level surrendered
following a 0.9 percent slide on Thursday which came after the
European Central Bank failed to deliver widely expected stimulus
measures to help tackle the euro zone debt crisis.
Investors in London shrugged aside that ECB disappointment
on Friday to focus on hopes that July's U.S. jobs data, due at
1230 GMT, could prompt the U.S. Federal Reserve to launch
further stimulus measures if they miss forecasts.
'There might be a feeling that maybe the move yesterday on
the ECB was overdone - I think we're getting a bit of a relief
off that, and as we've seen with the jobs figures in recent
months, whatever happens, the market tends to view it as good,'
David Jones, chief market strategist at IG Index said.
U.S. non-farm payrolls are forecast to rise by 100,000 in
July, after an 80,000 increase in June, with the unemployment
rate seen static at 8.2 percent.
'If we get a good number, it shows the economy's maybe
better than we thought. If we get a bad number, then people
think it's going to force the Fed's hand to do more QE,' IG
Group's Jones added.
IAG PAIN
International Airlines Group was by far the biggest
FTSE 100 faller, dropping 3.9 percent as Europe's fourth-biggest
airline group by market value - formed by the merger of British
Airways and Iberia - cut its full-year profit guidance citing a
poor performance from its Spanish unit and rising fuel costs.
The guidance cut came as IAG reported an operating loss of
253 million euros ($307.6 million) in the six months to the end
of June compared to a profit of 88 million euros in the same
period a year ago
'The statement indicates deep, structural problems at Iberia
and a restructuring plan is anticipated to be finalised by the
end of September. We await further details about this on the
conference call but it is clear that IAG as a stock will
struggle until more clarity is reached on its troubled Iberia
division,' Davy Stockbrokers said in a note.
Volume in IAG shares was strong, with the stock having
traded over 57 percent of its 90-day daily average by 0821 GMT,
while overall volume for the FTSE 100 index was moderate at 9.8
percent of the 90-day daily average.
(Additional reporting by Tricia Wright; Editing by Jon Hemming)
((jon.hopkins@thomsonreuters.com)(02075428954)(Reuters
Messaging: jon.hopkins.thomsonreuters.com@reuters.net))
Keywords: MARKETS BRITAIN STOCKS/
( For related prices, Reuters users may click on - * UK stock report 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, click on - * European Equities speed guide................ FTSE Eurotop 300 index........................... DJ STOXX index................................... Top 10 STOXX sectors........................ Top 10 EUROSTOXX)
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.
