Today's Closing Update
U.S. shares fell, with the tech sector once again leading the day’s decline as large-cap names in the sector sold off and as investors awaited a speech by Federal Reserve Chairwoman Janet Yellen and watched developments surrounding controversial health-care legislation in the U.S. Senate.
European and U.K. shares fell, as a drop in auto stocks after Germany’s Schaeffler cut its profit outlook and disappointment over a failed buyout of Stada offset gains among basic resources firms and Spain’s Bankia.
The European Central Bank will need to be prudent in withdrawing monetary stimulus as that can be done only gradually with the euro area still in need of considerable policy support to bring inflation back to target in a sustainable way, according to ECB President Mario Draghi. “In the current context where global uncertainties remain elevated, there are strong grounds for prudence in the adjustment of monetary policy parameters, even when accompanying the recovery,” Draghi said in a speech at an ECB forum in Sintra, Portugal. “Any adjustments to our stance have to be made gradually, and only when the improving dynamics that justify them appear sufficiently secure.”
WPP said that some of its information technology systems have been hit by a global cyber attack. “WPP is assessing the situation and is taking appropriate measures,” it said as it emerged that companies across the globe have been affected by a major cyber attack, with firms in the Ukraine among the first to report problems.
Playtech lost ground as its founder, Israeli billionaire Teddy Sagi, sold a bigger-than-expected stake in the group on the back of strong investor demand. Brickington Trading, a subsidiary of a trust of which Sagi is the beneficiary, sold 36.5m shares at 924p each. Playtech had said that the sale would be around 32m shares.
3i Infrastructure has confirmed that it is “considering its options” in relation to its interest in Anglian Water Group. “These considerations are at an early stage and, as such, there can be no certainty that they will lead to a sale of all or any of the company’s interest in AWG.” AWG is held through 3i Osprey, a partnership managed by 3i Investments, which is the company’s investment adviser.
The Competition and Markets Authority said there are reasonable grounds to believe that proposals put forward by Heineken might remedy competition concerns over its £402.7m proposed purchase of London-listed pub operator Punch Taverns’ estate. “As part of an initial investigation, the CMA looked in detail at areas where pubs operated by Heineken and Punch currently compete. It has identified 33 local areas where their pubs would not face sufficient competition after the merger, which could lead to price increases or deterioration in the quality of the service on offer.”
Allied Irish Banks opened more than 8% higher in their trading debut, after the government, which owns 99.9% of the bank, sold a 25% interest. Irish finance minister Michael Noonan said back in May that the government was planning on selling a stake in the bank after rescuing it during the financial crisis in 2009 in a bailout that cost taxpayers €21bn. The government sold its interest in the bank – 678.6m shares – at €4.40 each in the IPO, valuing the stake at €2.99bn. An additional 3.75% of the lender’s shareholders’ equity would also be offered via a so-called ‘green-shoe’ option.
Google has been fined a hefty $2.7bn by the European Commission for breaching EU antitrust rules. The Commission ruled that Google has abused its market dominance as a search engine by giving illegal advantage to its own comparison shopping service. The given fine is said to be the regulator’s largest penalty to date against antitrust issues.Google must now end the conduct within 90 days, otherwise will need to face penalty payments of up to 5% of the average daily worldwide turnover of Alphabet, Google’s parent company.
Oil prices rose for a fourth consecutive session, boosted by a weaker dollar, but worries over persistent oversupply capped gains.
Gold rose to recover from its lowest level in nearly six weeks, supported by a softer dollar ahead of a speech later in the day by Federal Reserve Chair Janet Yellen for clues on whether the U.S. will keep raising rates this year.
Market Close
Market |
Index |
Change |
% Change |
UK 100 |
7434.4 |
-12.4 |
-0.2% |
UK 250 |
19,526.8 |
-157.8 |
-0.8% |
GER 30 |
12,671.0 |
-99.8 |
-0.8% |
FRA 40 |
5,258.6 |
-37.2 |
-0.7% |
U.S. 30 |
21,419.70 |
+10.15 |
+0.1% |
U.S. 500 |
2,439.7 |
+0.6 |
+0.0% |
OIL (BRENT) |
47.01 |
+1.18 |
+2.6% |
GOLD |
1,247.71 |
+2.99 |
+0.2% |
UK Risers & Fallers
Company |
Price |
Change |
% Change |
Ferrexpo |
198.85 |
+10.7 |
+5.7% |
Glencore |
287.65 |
+10.45 |
+3.8% |
Rio Tinto |
3157 |
+100 |
+3.3% |
Northgate |
450.5 |
-86 |
-16.2% |
GKN |
331.2 |
-14.9 |
-4.3% |
Admiral Group |
1994 |
-46 |
-2.3% |
Reported Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
10:30am: Bank of England Financial Stability Report |
– |
– |
– |
11:00am: Bank of England Governor Carney speaks |
– |
– |
– |
11:00am: U.K. CBI Realised Sales |
2 |
4 |
12 |
3:00pm: U.S. CB Consumer Sales |
117.9 |
116.1 |
118.9 |
Sources:
http://www.marketwatch.com/story/wall-street-stocks-on-track-to-slip-hurt-again-by-a-drop-for-techs-2017-06-27
http://uk.reuters.com/article/europe-stocks-idUKL8N1JO14X
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1498564256552038800.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1498565383022073800.html
https://www.digitallook.com/news/risers-and-fallers/ftse-250-movers-miners-shine-but-northgate-skids-lower-as-profit-drops–2742886.html
https://www.digitallook.com/tops/news.html
https://www.digitallook.com/news/news-and-announcements/3i-infrastructure-considering-its-options-over-awg–2742133.html
https://www.digitallook.com/news/news-and-announcements/wpp-hit-by-cyber-attack–2743444.html
https://www.digitallook.com/news/new-issues/allied-irish-banks-surges-in-market-debut–2742072.html
https://www.digitallook.com/news/news-and-announcements/cma-says-heinekens-proposals-might-remedy-competition-concerns–2741872.html
http://www.business-standard.com/article/reuters/gold-rebounds-from-six-week-low-as-dollar-sags-ahead-of-yellen-speech-117062700500_1.html
https://www.reuters.com/article/us-global-oil-idUSKBN19I01H