Highlights of the Day
Asian Markets
Asian markets were mixed, with Japan’s benchmark index trading just below the flat line. Investors are also expected to turn their attention to the Federal Reserve’s two-day policy meeting later in the week. |
U.S. Markets
U.S. stocks ended modestly higher Friday, with the U.S.500 breaking a four-day losing streak after mostly upbeat economic data, though major indexes still suffered hefty weekly declines. |
Today's News
British households’ current financial pressures moderated in March, underpinned by higher workplace incomes and softer inflation, results of a survey by IHS Markit and market research company Ipsos Mori revealed. The seasonally adjusted Household Finance Index, of HFI, rose to a three-month high of 43.1 in March from 42.4 in February. However, any score below 50 suggests pessimism regarding finances among the UK households.
The maximum stake for fixed odds betting terminals (FOBT) should be cut to £30 or less, the UK’s Gambling Commission has recommended. It comes after consultation on FOBTs for the Department for Digital, Culture, Media and Sport (DCMS). The DCMS wants “to reduce the risks that consumers, especially those that are vulnerable, face from gambling”. It says the maximum stake on “slots games”, which are like traditional fruit machine games, should be £2.
Further to its announcement on 9 March about the proposed combination of Dana Incorporated and GKN Driveline, Dana announced that the new combined business will hold a standard listing on the London Stock Exchange, in addition to being listed on the New York Stock Exchange.
Micro Focus International downgraded its revenue guidance and said its chief executive, Chris Hsu, had resigned. The company now expected revenue for the year through October to be 6-9% below the prior year. That compared to previous guidance of a 2-4% fall. The impact of the downgrade on the adjusted Ebitda margin was expected to be mitigated by planned cost cutting, which was tracking ahead of schedule, the company said.
Melrose has confirmed it has offered to invest £1bn in engineering giant GKN’s pension fund as it battles to secure a takeover deal. The move could allay concerns from the pensions watchdog and MPs, who have called for the deal to be blocked. The offer comes after GKN rejected what Melrose said last week was its final offer of about £8.1bn. GKN makes parts for planemakers Airbus and Boeing, as well as parts for Volkswagen and Ford cars.
French real estate investment fund Klepierre this morning confirmed it made an approach for Hammerson that was rejected in less than a day. It offered 615p per share – a premium of around 40.7 per cent to Hammerson’s closing price on 16 March. In a statement, the French firm said that on the 8 March it made a proposal “on a non-adversarial basis” to the Hammerson board with the intention of kicking off “a constructive dialogue” regarding a possible offer. It was turned down in less than a day on the 9 March. It said a further announcement will be made “if and when appropriate”.
Gold Prices extended losses into a fourth session, with the dollar remaining supported as investors expect the U.S. Federal Reserve to raise interest rates this week.
Oil Prices fell as increased drilling in the United States pointed to more output, raising concerns about a return of oversupply.
Companies Reporting this week
Day |
Companies |
Monday: |
None of Note |
Tuesday: |
None of Note |
Wednesday: |
Kingfisher * Ferrexpo |
Thursday: |
Ted Baker * Allied Minds |
Friday: |
Next |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,135.8 |
-28.4 |
-0.4% |
UK 250 |
19,841.6 |
+36.7 |
+0.2% |
GER 30 |
12,356.3 |
-33.2 |
-0.3% |
FRA 40 |
5,261.2 |
-21.5 |
-0.4% |
U.S. 30 |
24,946.51 |
+72.85 |
+0.3% |
U.S. 500 |
2752.0 |
+4.7 |
+0.2% |
OIL (BRENT) |
65.93 |
-0.28 |
-0.4% |
GOLD |
1,309.11 |
-5.13 |
-0.4% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Hammerson |
553 |
+115.9 |
+26.5% |
Barclays |
216.2 |
+6.7 |
+3.2% |
Ladbrokes Coral |
177.3 |
+6.85 |
+4.0% |
Micro Focus |
1079.5 |
-805 |
-42.7% |
Anglo American |
1720.6 |
-48.8 |
-2.8% |
Ferrexpo |
302.05 |
-10.95 |
-3.5% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
Unilever |
Goldman Sachs |
Neutral |
3787 |
4000 |
Hikma Pharmaceuticals |
Barclays |
Underweight |
1125.25 |
480 |
Inmarsat |
Goldman Sachs |
Neutral |
402.65 |
480 |
Close Brothers Group |
Berenberg |
Hold |
1441 |
1530 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
All Day: G20 Meetings |
– |
– |
– |
Sources
https://www.moneycontrol.com/news/business/markets/asian-shares-trade-mixed-as-markets-await-fed-meeting-2530999.html
https://www.marketwatch.com/story/us-stock-futures-struggle-as-political-worries-return-to-haunt-investors-2018-03-16
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1521447270711587500.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1521442715711195000.html
https://uk.webfg.com/news/news-and-announcements/combined-gkn-driveline-dana-business-would-have-london-listing–3197977.html
http://www.stockmarketwire.com/article/5897538/Micro-Focus-International-downgrades-revenue-guidance-CEO-resigns.html
http://www.bbc.co.uk/news/business-43455480
http://www.bbc.co.uk/news/business-43452676
https://uk.reuters.com/article/global-precious/precious-gold-prices-edge-down-as-dollar-stays-firm-ahead-of-fed-meeting-idUKL3N1R11OC
https://www.reuters.com/article/us-global-oil/oil-prices-fall-as-increased-u-s-drilling-points-to-higher-output-idUSKBN1GV05K
http://www.cityam.com/282505/frances-klepierre-confirms-hammerson-approach-rejected-less
http://www.bbc.co.uk/news/live/business-43430964