Highlights of the Day
Asian Markets
Asian stock markets were mixed in early trading Tuesday, following a report that the U.S. may impose more tariffs against Chinese goods. |
U.S. Markets
US stock markets tumbled in the final hours of trading amid signs that US-China tensions are reigniting.
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Today's News
France’s economy expanded at a faster pace in the third quarter largely driven by domestic demand and exports, first estimate from the statistical office Insee showed. Gross domestic product advanced 0.4% sequentially, in line with expectations, following second quarter’s 0.2% expansion.
BP said higher oil prices and a positive operating performance led to a doubling in the company’s quarterly profit. For the three months to September, BP’s replacement cost profit was $3.09bn, more than double the $1.38bn it posted the same period a year prior. Compared to the second quarter of 2018, the figure was 73% higher.
Reckitt Benckiser said its third-quarter sales slipped 2% due to mechanical disruptions at a UK infant formula plant. Revenue for the three months through September fell to £3.12bn. On a like-for-like basis, it rose 2%.
Polymetal International said it had agreed to sell its Kapan mine in Armenia to Chaarat Gold Holdings for $55m. The consideration would be payable in cash, with an option for Chaarat to elect to satisfy up to $5m with its 2021 convertible notes.
WH Smith said it had agreed to acquire airport retailer InMotion for $198m (£155m), expanding its presence into the US market. The deal would double the size of WH Smith’s international travel business, which it has been growing to offset pressure on the UK high street.
Ocado Group said US partner Kroger was expected to order 20 customer fulfilment centres over three years, with the first three ordered by the end of 2018.
Restaurant Group said it had agreed to purchase Wagamama restaurant owner Mabel Topico for £357m and would issue new shares to help fund the deal. The cash purchase price represented an enterprise value of £559m, implying a multiple of 8.7 times 2018 Ebitda, including cost and site conversion synergies, the company said.
Hunting said it delivered a solid performance in the third quarter but warned that the US offshore and international markets remain slow. The oil services group on Tuesday said revenues during the third quarter remained steady in North America.
AstraZeneca said it had agreed to sell the prescription medicine rights to its stomach acid treatment Nexium in Europe, and the global rights to its inflammatory treatment Vimovo to Grunenthal for a combined upfront payment of $815m.
Volkswagen has reported a leap in third-quarter profits, as its litigation costs eased. Year-on-year profits more than doubled to €2.76bn but still fell short short of analysts’ expectations.
Oil Prices dipped, weighed down by ongoing weakness in global stock markets and by signs of rising global supply despite looming sanctions on Iran’s crude exports.
Gold Prices edged down as the U.S. dollar firmed on renewed fears of an intensification in the Sino-U.S. trade war and worries over slowing global economic growth.
Companies Reporting this week
Day |
Companies |
Monday: |
HSBC |
Tuesday: |
Hunting * Reckitt Benckiser * BP * Standard Chartered |
Wednesday: |
Computacenter * Next * GlaxoSmithKline |
Thursday: |
BT * Shire * Smurfit Kappa * Smith & Nephew * Royal Dutch Shell * Croda International * Shire * Centamin |
Friday: |
Millennium & Copthorne * TP ICAP * Paddy Power Betfair |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,049.2 |
+22.8 |
+0.3% |
UK 250 |
18,582.4 |
+15.6 |
+0.1% |
GER 30 |
11,378.4 |
+42.9 |
+0.4% |
FRA 40 |
4,995.0 |
+5.7 |
+0.1% |
US 30 |
24,442.92 |
-245.39 |
-1.0% |
US 500 |
2,641.25 |
-17.44 |
-0.7% |
Oil (Crude) |
77.23 |
-0.11 |
-0.1% |
GOLD |
1,225.25 |
-4.17 |
-0.3% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
BP |
554.9 |
+19.7 |
+3.7% |
Sage Group |
538.6 |
+10.6 |
+2.0% |
WH Smith |
1799 |
+65 |
+3.8% |
Reckitt Benckiser |
6355 |
-256 |
-3.9% |
BAE Systems |
506.8 |
-15.6 |
-3.0% |
Hunting |
659.75 |
-37.75 |
-5.4% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
National Grid |
Goldman Sachs |
Neutral |
843.9 |
858 |
Lloyds |
HSBC |
Hold |
57.18 |
66 |
Antofagasta |
UBS |
Neutral |
756.4 |
800 |
HSBC |
Deutsche Bank |
Hold |
633.8 |
718 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
11.00am: European Prelim Flash GDP q/q |
0.3% |
0.4% |
– |
3.00pm: U.S. CB Consumer Confidence |
138.4 |
136.3 |
– |
Sources
https://www.bbc.co.uk/news/business-46026309
https://www.marketwatch.com/story/asian-markets-mixed-as-us-china-trade-tensions-rear-up-again-2018-10-29
https://www.reuters.com/article/us-global-oil/brent-crude-prices-dip-on-rising-supply-global-market-woes-idUSKCN1N402I
https://www.cnbc.com/2018/10/30/gold-markets-us-china-trade-war-dollar-in-focus.html
https://www.londonstockexchange.com/exchange/news/alliance-news/detail/1540884584145423900.html
https://www.londonstockexchange.com/exchange/news/alliance-news/detail/1540882903025276200.html
http://www.stockmarketwire.com/article/6186369/AstraZeneca-to-sell-rights-on-two-drugs-for-815m.html
http://www.stockmarketwire.com/article/6186359/Polymetal-sells-Kapan-mine-to-Chaarat-Gold-for-55m.html
http://www.stockmarketwire.com/article/6186345/WH-Smith-expands-into-US-with-198m-acquisition-of-InMotion.html
http://www.stockmarketwire.com/article/6186337/Reckitt-Benckiser-sales-slip-after-UK-infant-formula-plant-disruption.html
http://www.stockmarketwire.com/article/6186333/Ocado-to-develop-20-customer-fulfilment-centres-for-Kroger.html
http://www.stockmarketwire.com/article/6186331/Restaurant-Group-to-acquire-Wagamama-for-pound357m.html
https://www.proactiveinvestors.co.uk/companies/news/208087/hunting-warns-that-us-offshore-and-international-oil-markets-remain-slow-208087.html
https://www.bbc.co.uk/news/live/business-45991715