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London close: Stocks hit by Bullard comments as post-Fed rally fades

Fri, 20th Sep 2013 16:39

The exuberant post-Fed mood quickly faded on Friday with comments from one US policymaker dampening stocks before the close of trade.Risk appetite was also scaled back as caution set in ahead of the German elections at the weekend with the outcome still highly uncertain.The FTSE 100 finished 28.96 points lower at 6,596.43, a fall of 0.44% on the day.The Federal Reserve surprised analysts on Wednesday with the decision not to scale back stimulus, sparking a huge surge on global stock markets worldwide. After a broadly flat start this morning however, stocks sank into the red by the afternoon after the head of the St Louis Fed, James Bullard, said that the central bank could still taper quantitative easing at its next meeting in October. He admitted that this month's decision to maintain stimulus was a close call."This admission so soon after Wednesday's surprise has introduced an element of sogginess to today's afternoon trading with investors reluctant to take on any significant new positions ahead of the weekend, in what has been a fairly positive week for European equity markets," said Senior Market Analyst Michael Hewson from CMC Markets.Also on investors' minds today will be the looming elections in Germany this weekend, with the outcome still highly uncertain given that a rising euro-sceptic movement across the country could complicate things for Angela Merkel's CDU party. Chris Beauchamp, Market Analyst at IG said that the elections is "the only real cloud on the horizon now" and it would be a major upset if euro-sceptics made significant gains. He said: "Like most Europeans, Germans have had enough of the crisis and would rather not rock the boat, even if it is they that are underpinning the rescue and recovery efforts."FTSE 100: Miners track metal prices lowerFalling metal prices were weighing on mining stocks today as commodities pulled back after recent gains. Vedanta, Antofagasta, Fresnillo, Randgold, Anglo American and ENRC fell sharply as gold, silver and copper values took a hit.Food and sweeteners manufacturer Tate & Lyle was also a heavy faller after the stock's rating was cut by Credit Suisse from 'outperform' to 'neutral'. The bank said: "The long-running forward price-to-earnings multiple is 12 versus 13.5 today. That looks right to us."United Utilities was retreating after yesterday's strong gains, dragged down after Beaufort Securities lowered its recommendation to 'hold'.Banking stocks were also out of favour with domestic lenders RBS, Lloyds and Barclays among the worst performers. RBS, which announced this morning the sale of a further 20% stake in Direct Line Insurance, was being weighed down by comments by Investec which said that the third-quarter trading statement on November 1st "may (once again) prove to be a poor time to own the shares!"Heading the other way was supermarket chain Sainsbury after Citigroup upgraded the group to 'neutral' ahead of its second-quarter trading update in a couple of weeks. The bank said it expects a "big improvement" in like-for-like sales trends from the first quarter.BP was also making gains this morning on market chatter that US oil major Exxon could be interested in making a bid for its smaller rival. One analyst however suggested that these rumours should be taken "with a pinch of salt" perhaps as a result of light news flow on Friday. Pharmaceuticals group AstraZeneca rose after receiving a green light from European regulators for its nasal influenza vaccine for children.FTSE 250: Premier Farnell, ICAP hit by downgradesElectronic components distributor Premier Farnell was a heavy faller after yesterday's first-half report as Numis cut the stock to 'hold', outweighing a Cantor Fitzgerald upgrade to 'buy'.Interdealer broker ICAP was also trading lower after Bank of America Merrill Lynch downgraded the stock to 'neutral'. The group was also making headlines on reports that it could soon agree a settlement with regulators over the LIBOR rate-rigging scandal.Insurance firm Jardine Lloyd Thompson, meanwhile, was in demand after buying Towers Watson's reinsurance brokerage business for $250m.FTSE 100 - RisersShire Plc (SHP) 2,593.00p +2.01%Persimmon (PSN) 1,127.00p +1.44%GKN (GKN) 360.70p +1.41%Sainsbury (J) (SBRY) 396.40p +1.38%International Consolidated Airlines Group SA (CDI) (IAG) 328.60p +1.20%Pearson (PSON) 1,301.00p +1.17%Centrica (CNA) 402.20p +1.16%Reed Elsevier (REL) 845.00p +1.14%Johnson Matthey (JMAT) 2,878.00p +0.91%Schroders (SDR) 2,631.00p +0.88%FTSE 100 - FallersVedanta Resources (VED) 1,116.00p -4.37%Antofagasta (ANTO) 851.50p -3.89%Randgold Resources Ltd. (RRS) 4,676.00p -3.41%Fresnillo (FRES) 1,033.00p -3.37%Anglo American (AAL) 1,591.00p -2.69%London Stock Exchange Group (LSE) 1,558.00p -2.62%Tate & Lyle (TATE) 766.50p -2.23%Old Mutual (OML) 191.90p -1.89%Standard Chartered (STAN) 1,535.50p -1.82%Barclays (BARC) 273.45p -1.74%FTSE 250 - Risersesure Group (ESUR) 262.70p +5.08%Bwin.party Digital Entertainment (BPTY) 120.50p +3.97%Centamin (DI) (CEY) 45.50p +3.27%Jardine Lloyd Thompson Group (JLT) 942.00p +2.95%Playtech (PTEC) 739.50p +2.71%Cranswick (CWK) 1,189.00p +2.50%Kenmare Resources (KMR) 27.50p +2.23%Ted Baker (TED) 1,909.00p +2.19%Countrywide (CWD) 570.00p +2.15%Big Yellow Group (BYG) 425.60p +1.94%FTSE 250 - FallersAnite (AIE) 112.50p -6.64%Alent (ALNT) 340.00p -6.21%Britvic (BVIC) 554.50p -5.78%Premier Farnell (PFL) 215.20p -5.66%Vesuvius (VSVS) 432.20p -5.43%Polymetal International (POLY) 669.00p -5.17%Hochschild Mining (HOC) 202.40p -4.89%Daejan Holdings (DJAN) 3,652.00p -4.80%Lonmin (LMI) 332.00p -4.68%Tullett Prebon (TLPR) 352.50p -4.60%BC
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24 Jun 2013 11:38

London midday: FTSE 100 nearly erases year-to-date gains

After a bright start, the FTSE 100 had sunk sharply into the red by Monday lunchtime with the index having nearly erased all of the impressive gains made since the start of the year. The Footsie was trading 1.05% lower by midday at around 6,052, compared to an intraday high of 6,132 reached early o

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24 Jun 2013 11:09

ENRC independent directors say cannot back buyout bid

LONDON, June 24 (Reuters) - The independent directors of Kazakh miner ENRC said on Monday they would not back a $4.7 billion buyout bid from the group's trio of founding shareholders. The independent committee of the board said the offer, worth around 234 pence per share, "materially underv

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24 Jun 2013 09:22

UPDATE 2-ENRC $4.7 bln buyout bid gets support from Kazakhmys

* Kazakhmys says bid for ENRC buyout "best alternative" * Founders confirm offer worth 243.3 pence per share * Kazakhmys down over 10 pct, ENRC shares below bid level By Clara Ferreira-Marques LONDON, June 24 (Reuters) - A $4.7 billion bid by the founders of ENRC to buy ou

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24 Jun 2013 08:27

London open: Stocks edge higher after recent sell-off

The FTSE 100 opened in positive territory on Monday morning, albeit only slightly, as markets made a tentative start to the new week following the dramatic sell-off seen over recent sessions. London's benchmark index closed Friday's session at just 6,116 following a number of steep declines since t

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24 Jun 2013 06:30

Kazakhmys board backs bid for ENRC, "realistic" exit

LONDON, June 24 (Reuters) - The board of Kazakh miner Kazakhmys, the single largest shareholder in miner ENRC , has said it will back a buyout bid for its troubled rival, an offer it characterised as the only "realistic opportunity" to sell out. Support from Kazakhmys, with its long-problem

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23 Jun 2013 23:51

Sunday newspaper round-up: ENRC, BIS, PBoC

The trio of Central Asian oligarchs who founded FTSE 100 listed miner ENRC are expected to return tomorrow to the markets with an even lower offer for the company. The new bid is expected by analysts to value the company at 240p per share, less even than the 260p initially tabled. While the firm´s

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23 Jun 2013 12:03

UPDATE 1-Founders set for reduced $4.7 bln buyout bid for ENRC

* Offer would be worth 234.3 pence per ENRC share * Founders face June 24 deadline for firm bid By Matt Scuffham and Clara Ferreira-Marques LONDON, June 23 (Reuters) - The billionaire founders of ENRC are close to finalising a buyout bid for the London-listed Kazakh miner, valu

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23 Jun 2013 10:08

ENRC founders close to 3.04 bln stg buyout offer

LONDON, June 23 (Reuters) - The billionaire founders of miner ENRC are close to finalising a buyout offer valuing the business at about 3.04 billion pounds ($4.68 billion), they said in a statement on Sunday. ENRC's founding trio and key shareholders - Alexander Machkevitch, Alijan Ibragimo

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21 Jun 2013 16:12

No improvement in sight as founders hammer out ENRC buyout bid

* Bidders face June 24 "put up or shut up" deadline * Offer indicated in May was for 175p in cash plus 0.231 Kazakhmys share * At current prices, offer is worth 238p/share * ENRC currently trading around 219p By Clara Ferreira-Marques LONDON, June 21 (Reuters) - The

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19 Jun 2013 17:17

London close: All eyes on tonight's Fed meeting

UK markets gave back Tuesday' slight gains as traders continued to take positions, or stay on the side lines, ahead of the all-important policy decision - and accompanying market reaction - from the US Federal Reserve due out later this evening. "Bernanke has two key messages that he wants to get a

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19 Jun 2013 12:01

London midday: Markets cautious as eyes remain fixed on Fed

A decline in risk appetite meant that UK markets were in the red on Wednesday morning ahead of the all-important policy decision from the Federal Reserve due out later this evening. "Attention is firmly on the Fed's monetary policy decision and press conference later, with investors clearly concern

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18 Jun 2013 17:04

London close: Markets move higher with Fed decision in focus

After a subdued start, the FTSE 100 finished with impressive gains on Tuesday as investors put aside worries ahead of the key 'risk event' of the week, the monetary policy meeting at the Federal Reserve. Banking stocks in London were performing well today after the China Securities Journal suggeste

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18 Jun 2013 14:34

FTSE 100 movers: Whitbread jumps as Costa drives strong first-quarter growth

Whitbread was performing well on Tuesday after the company reported a decent first quarter with group sales up 13.8 per cent, boosted by growth at Premier Inn and another strong performance from Costa which saw sales jump by an impressive 24.8 per cent. Whitbread said that while sales in its resta

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12 Jun 2013 16:58

Russian retreat from FTSE 100 extended with relegated metals firms

* Evraz, Polymetal demoted from FTSE 100 * Travis Perkins, Persimmon promoted to FTSE 100 * Russian gold miner Petropavlosk relegated to small caps * FTSE reshuffle effective after UK close on June 21 By David Brett LONDON, June 12 (Reuters) - Russian companies' exod

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12 Jun 2013 09:26

Down, not out: Russians exit FTSE 100 but London retains allure

* Russian metals firms set to exit blue chip index * Metals prices to blame, foreign ownership under wider spotlight * FTSE still appeals to miners, Russians stick with GDRs By Clara Ferreira-Marques and Alessandra Prentice LONDON/MOSCOW, June 12 (Reuters) - Two Russian m

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