ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for alerts Register for real-time alerts, custom portfolio, and market movers

ADVFN Morning London Market Report: Friday 12 Feb 2016

Share On Facebook
share on Linkedin
Print

London open: Rolls-Royce and banks lead FTSE bounce

© ADVFN

Led by a relief rally in Rolls-Royce and banking stocks, shares in the UK’s blue chips threw off the negative market sentiment and bounced back strongly after hitting three-year lows the day before.

Overnight, US stocks lost more than 1% while in Asia the Nikkei capped its worst week, closing down 4.84%, and the Hang Seng ended 1.22% lower.

However, the UK benchmark was driven higher as Rolls-Royce rallied by an initial 13% after the aircraft engine maker kept its 2016 guidance unchanged and halved its dividend, with 2015 profits and cash flow not as bad as analysts had feared.

After a precipitous fall on Thursday morning, banking stocks rebounded, helped by a reassuring surge from Germany’s Commerzbank as it latest quarterly results impressed.

German GDP also allayed some fears about Deutsche Bank as it hit its target 0.3% growth mark, with CPI inflation also in line at 0.5%.

Another possible boost for the financial sector was the vote of confidence from JP Morgan chief executive Jamie Dimon as he splashed out on $26m worth of the bank’s shares.

Firmer oil prices were another stimulant, boosted by comments from Saudi Arabia’s energy minister that have fuelled hopes of a coordinated production cut by OPEC members.

West Texas Intermediate was up 3% at $26.99 a barrel while Brent crude was 2.9% higher at $30.94, helping to push the Stoxx 600 oil and gas index up 2.9%.

“As another nerve shredding week draws to a close there appears to be some mild relief for investors as equities try to drive higher,” said Mike McCudden at broker Interactive Investor.

“However, it may take some time before investors are truly convinced that a move back in to riskier assets is worthwhile, as the market turmoil emanating from Asia and the euro zone shows no sign of going away any time soon. With a raft of economic data due today as well as an Ecofin meeting, we may yet see some more turbulence as we head in to the weekend break.”

Data out later today includes UK December construction output, European December industrial production, EC updated fourth quarter GDP, and in the US the major data point of the day could be January’s US retail sales numbers, where expectations are for no change over the month after a 0.1% decline in December. December business inventories and flash February University of Michigan consumer sentiment are also due.

UK larger-cap company news was thin on the ground, with the main faller being clothes retailerSupergroup, after founder Julian Dunkerton cut his stake.

Reports were that Dunkerton sold the 4.9% stake worth £53m, his first share sale since the fashion retailer listed on the stock market six years ago, in order to fund a recent divorce settlement.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Comments

  1. stirkjames says:

    Why have you stopped sending me your morning and evening market report to my email.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com