Highlights of the Day
Asian Markets
Asia-Pacific shares rose as investors welcomed signals the U.S. and China are open to negotiations rather than escalating threatened tit-for-tat trade tariffs. |
U.S. Markets
Stocks closed sharply higher as Wall Street erased massive losses earlier that came after China’s announcement of new tariffs on U.S. goods sparked fears of a trade war. |
Today's News
German manufacturing sector orders edged higher last month, boosted by orders from within the single currency bloc, but nevertheless fell short of analysts’ expectations. Total factory orders rose by 0.3% month-on-month (consensus: 1.5%), according to the Ministry of Finance, following a modestly upwardly-revised drop of 3.5% in the month before.
Sophos, a provider of cloud-enabled enduser and network cybersecurity solutions, expects to report billings growth towards the top end of its previously guided range of 20-22% for the year ended 31 March 2018. This would represent approximately 18% growth on a constant currency basis, reflecting fourth quarter reported billings growth of approximately 23%, or 16% at constant currency.
Hammerson reported a strong start to the first quarter of the year as net asset value grew 1.8% to 790p, driven by retained earnings and valuation gains. Leases signed across the group rose to £7m, up 59% compared to the same period a year ago. The firm said this was achieved despite ‘ the current challenging UK retail backdrop and the headwinds currently affecting consumers and retailers’.
Fidessa Group confirmed the identities of the two new potential suitors for the financial software firm after press reports. Fidessa said the first new offer came from ION Investment Group and the other from SS&C Technologies Holdings.
BTG said that revenue was in line with expectations for the financial year end as its interventional medicine product sales reflected mid-teens growth at constant exchange rates in the oncology and vascular portfolios. Sales of the earlier-stage Interventional Medicine assets were broadly flat on a constant exchange rate basis as growth in Varithena sales was offset by lower sales of the PneumRx Coils.
Vodafone UK has acquired 50 MHz of spectrum in the 3400 MHz band for mobile data services in Ofcom’s auction for a total cost of £378.2 million. Vodafone UK will use the 3400 MHz spectrum to deploy 5G services, enabling Gigabit speeds and lower latency to enhance applications including connected vehicles and robotics, industrial automated systems, and virtual and augmented reality.
Gold Prices fell, pulling back from one-week highs reached the session before, as risk appetite recovered after the United States expressed willingness to resolve an escalating trade fight with China.
Oil Prices rose, buoyed by the U.S. government data showing a surprise drawdown in crude stockpiles.
Companies Reporting this week
Day |
Companies |
Monday: |
None of Note |
Tuesday: |
None of Note |
Wednesday: |
None of Note |
Thursday: |
None of Note |
Friday: |
None of Note |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,128.2 |
+94.2 |
+1.3% |
UK 250 |
19,403.3 |
+139.1 |
+0.7% |
GER 30 |
12,175.4 |
+217.5 |
+1.8% |
FRA 40 |
5,226.2 |
+84.4 |
+1.6% |
U.S. 30 |
24,264.30 |
+230.94 |
+1.0% |
U.S. 500 |
2,644.7 |
+30.2 |
+1.2% |
OIL (BRENT) |
68.30 |
+0.28 |
+0.4% |
GOLD |
1,325.14 |
-8.05 |
-0.6% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Micro Focus |
1035 |
+30 |
+3.0% |
Shire |
3701 |
+101 |
+2.8% |
Sophos |
488.1 |
+72.1 |
+17.3% |
Just Eat |
671.4 |
-22.8 |
-3.3% |
Aviva |
491 |
-11.4 |
-2.3% |
Rank Group |
183.6 |
-29.9 |
-14% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
Just Eat |
JPMorgan |
Underweight |
694.2 |
656 |
Barclays |
Goldman Sachs |
Neutral |
207.4 |
220 |
Segro |
Deutsche Bank |
Buy |
604.4 |
670 |
Entertainment One |
RBC Capital |
Outperform |
280 |
340 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
8.30am: U.K. Services PMI |
54.5 |
53.9 |
– |
Sources
https://www.marketwatch.com/story/asian-markets-gain-on-hopes-of-averting-trade-war-2018-04-04
https://www.cnbc.com/2018/04/04/us-stock-futures-dow-data-trade-tech-and-politics-in-focus.html
https://uk.reuters.com/article/us-global-oil/oil-gains-on-u-s-crude-drawdown-easing-of-tension-in-u-s-china-spat-idUKKCN1HC04T
https://uk.reuters.com/article/global-precious/precious-gold-slips-as-u-s-china-trade-war-fears-ease-idUKL4N1RI1SW
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1522911608904410600.html
http://www.stockmarketwire.com/article/5920216/Vodafone-UK-acquires-spectrum-for-5G-services.html
http://www.stockmarketwire.com/article/5920168/BTG-revenue-in-line-with-expectations-despite-lower-sales-of-PneumRx-Coils.html
http://www.stockmarketwire.com/article/5920097/Sophos-billings-growth-at-top-end-of-guidance.html
http://www.stockmarketwire.com/article/5920094/Hammerson-reports-strong-Q1-despite-challenging-UK-retail-backdrop.html
https://uk.webfg.com/news/international-economic/german-factory-orders-fall-far-short-of-forecasts-in-february–3226093.html
http://www.bbc.co.uk/news/live/business-43584368