Highlights of the Day

Asian Markets

Asian stocks bounced from near two-week lows on Tuesday as investors paused for breath following the heavy selling of recent sessions and waited to see if the dollar’s rally was sustainable.

U.S. Markets

U.S. stocks ended the session little changed as investors grappled with rising bond yields and a mixed bag of earnings reports. The closely watched yield on the 10-year Treasury note climbed, settling just below the psychologically important 3% level.

Today's News

London Stock Exchange Group reported higher quarterly income as its clearing, capital markets and UK Russell businesses grew strongly, further helping ease lingering investor after a difficult 2017 for the company.

 

Anglo American said it expected iron ore operations at Minas-Rio in Brazil, closed because of pipeline leaks, to ramp up in the fourth quarter of 2018, resulting in a $300-$400 million reduction in group earnings (EBITDA) for the year.

 

Banco Santander the euro zone’s biggest bank by market value, posted a better-than-expected 10 percent rise in first-quarter net profit on strength in its largest market, Brazil. Santander, the first among Spanish banks to report quarterly numbers, bagged a net profit of 2.05 billion euros (1.8 billion pounds) in the first three months of the year, from 1.87 billion euros a year ago. Analysts had forecast 2.01 billion euros.

 

St. James’s Place said its funds under management grew 13% in the first quarter as it increased net inflows. FUM reached £89.91bn amid net inflows of £2.60bn, up from inflows of £1.99bn in the previous corresponding period. Retention of client funds stood at 96%.

 

Melrose Industries said GKN, which it recently acquired, generated lower earnings and margins in the March quarter. The engineering group said the results were sourced directly from GKN management accounts for the three months up to 31 March, before it officially acquired the business on 19 April. Sales slipped slightly to £2.60bn, while operating profit fell 16% to £181.5m and the operating profit margin contracted by 1.2 percentage points to 7.0%.

 

The UK Competition & Markets Authority has approved the takeover of Nisa Retail Ltd by Co-operative Group Ltd for £143.5m. The Telegraph in August last year reported blue-chip grocer J Sainsbury PLC withdrew its £130m bid to buy the convenience store chain as it awaited the CMA’s ruling on Tesco PLC’s takeover of Booker Group PLC.

 

Oil Prices gave up earlier declines to settle higher, as reports that a Saudi-led air strike killed the head of the Houthi rebels in Yemen raised the potential for disruptions to the flow of crude in the Middle East.

 

Gold Prices settled lower for a third session in a row, touching the lowest level in nearly five weeks, as the commodity has been buffeted by a strengthening dollar and gains in the benchmark Treasury note.

Companies Reporting this week

Day Companies
Monday: None of Note
Tuesday: None of Note
Wednesday: Whitbread
Thursday: Capita Group
Friday: None of Note

Early Market Movements

UK 100 7,412.1 +13.2 +0.2%
UK 250 20,313.9 -2.5 -0.0%
GER 30 12,578.5 +6.1 +0.1%
FRA 40 5,427.2 -11.4 -0.2%
U.S. 30 24,448.69 -14.25 -0.1%
U.S. 500 2,670.3 +0.2 +0.0%
OIL (BRENT) 75.07 +0.36 +0.5%
GOLD 1,326.55 +1.72 +0.1%

UK Risers & Fallers (8:15am)

United Utilities 716.8 +13 +1.9%
Severn Trent 1893 +33 +1.8%
Vectura 91.45 +4.45 +5.1%
Paddy Power Betfair 7120 -200 -2.7%
Anglo American 1754.8 -20.8 -1.2%
William Hill 302.15 -33.95 -10.1%

Latest Broker Views

BP Goldman Sachs Buy 521.6
Centamin Goldman Sachs Conviction Buy List 153.3
Tullow Oil Credit Suisse Outperform 233.4
Anglo American JP Morgan Overweight 1775.6

Forthcoming Economic Data

Time/Date Previous Forecast Outcome
9.00am: Public Sector Net Borrowing -0.3bn 1.1bn
3.00pm: USD CB Consumer Confidence 127.7 126.0

Sources:

http://www.stockmarketwire.com/article/5944036/St-Jamess-Place-first-quarter-funds-under-management-up-13pct-on-year.html

https://uk.reuters.com/article/uk-global-markets/asian-stocks-bounce-dollar-oil-near-recent-highs-idUKKBN1HV023?il=0

https://uk.reuters.com/article/uk-lse-results/lses-income-rises-as-row-over-ceo-departure-fades-idUKKBN1HV0IX?il=0

https://uk.reuters.com/article/uk-angloamerican-production/anglo-americans-minas-rio-delay-hits-earnings-by-300-400-million-idUKKBN1HV0IP?il=0

https://uk.reuters.com/article/uk-santander-results/santander-first-quarter-profit-rises-10-percent-buoyed-by-brazil-idUKKBN1HV0BG?il=0

 

 

 

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