|Day's Range||7,322.01 - 7,376.31|
|52 Week Range||6,536.50 - 7,727.50|
Geopolitics is in focus, with Brexit, Iran, and the U.S – China trade war likely to keep the markets busy. Stats and the RBNZ are also of influence.
British stocks climbed higher on Friday on hopes for a Brexit deal and after U.S.-China trade talks resumed but the FTSE 100 was held back by a stronger pound.
UK inflation in August dropped to its weakest level since December 2016, driven by the prices of computer games and clothing, and offering a boost for consumers against the backdrop of a strong labour market and Brexit-related economic uncertainty, writes Bethan Staton. The decline in inflation, ahead of a meeting of the BoE Monetary Policy Committee, weakened any pressure to increase interest rates. The aggressive pricing strategy at the new venture, Schroders Personal Wealth, comes as it seeks quickly to become a big player in the financial advice market and meet ambitious asset growth targets.
(Bloomberg) -- European stocks have been on a tear over the past month, signaling investor optimism returning to the market. Not so fast, say strategists.They predict losses of more than 4% in both the Stoxx Europe 600 Index and the Euro Stoxx 50 Index of the region’s biggest companies by the end of the year, according to the average response in a Bloomberg poll. European equities have rebounded strongly since mid-August as trade war tensions eased and the region’s central bank boosted stimulus, with the Stoxx 600 within reach of a one-year high reached in July.They may give up some of those gains in the coming months, if the forecasts prove correct. The Stoxx 600 will close out the year at a level of 374, or 4.4% below Thursday’s close, and the Euro Stoxx 50 will end 2019 at 3,391, implying a 4.5% drop, according to the average prediction in a Bloomberg poll of strategists.While some risks have receded, others linger. The economic backdrop, particularly in Europe, remains a cause for concern. Domestic demand is weakening in Germany, with global trade tensions and Brexit uncertainty also weighing on Europe’s largest economy, the country’s finance ministry said on Thursday. And the OECD this week lowered its global growth forecast and warned that a no-deal exit from the European Union would push the U.K. into a recession.For the U.K.’s FTSE 100 Index, which has lagged European peers this year under a Brexit cloud, there may be more woes in store. Strategists on average see the gauge dropping to 7,114 by end-2019, or a 3.3% decline from Thursday’s close. Germany’s DAX Index will fall to 11,936, 4.2% below its last close, the poll shows.To view strategists’ forecasts on the Stoxx 600 and the Euro Stoxx 50, click hereFor predictions on the DAX, click here, and here for those on the FTSE 100To contact the reporter on this story: Namitha Jagadeesh in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Blaise Robinson at email@example.com, John ViljoenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The Labour party’s plans to hand 10 per cent of shares from UK-based companies to workers over a decade would see British pension funds lose £31bn, according to new research. Shadow chancellor John McDonnell’s plan to introduce “inclusive ownership funds” under a Labour government would transfer 1 per cent of shares in all large UK companies to workers annually for 10 years.
one of the UK’s top banks in November, after being confirmed as the successor to the Royal Bank of Scotland chief executive Ross McEwan. The state-owned lender will also become the only company in the FTSE 100 index with women in both its top two executive positions, following Katie Murray’s appointment as chief financial officer last year. Ms Rose, who currently leads RBS’ commercial and private banking business, had long been seen as the favourite to succeed Mr McEwan.
Rolls-Royce has warned of further disruption for airlines using its Trent 1000 engines, saying that aircraft will be grounded for longer than it had planned. The FTSE 100 group on Friday said that it had accelerated the replacement of intermediate pressure turbine blades for some engines which had led to additional engine removals, frustrating its efforts to get Boeing’s 787 aircraft flying again. The decision is understood to be linked to an incident in August during which a Norwegian Boeing 787 suffered an engine failure over Rome caused by fractured turbine blades.
European shares opened higher on Friday, set for their fifth straight week of gains, with the retail sector outperforming and investors rotating into defensive stocks. The European retail sector jumped 0.8%, the most among the main sub-sectors, powered by a 2.7% gain in Casino after the debt-laden French retailer said it was in talks to sell its discount store chain Leader Price to German rival Aldi. The pan-European STOXX 600 index rose 0.1%, with London's FTSE 100 underperforming.
The state-owned lender will also become the only company in the FTSE 100 index with women in both its top two executive positions, following Katie Murray’s appointment as chief financial officer last year. Howard Davies, RBS chairman, said: “I am delighted that we have appointed Alison as our new CEO. Ms Rose, who currently leads RBS’s commercial and private banking business, had long been seen as the favourite to succeed Mr McEwan, particularly after she was made deputy head of the holding company that owns most of RBS’s businesses last year.
Target and Microsoft stock were early leaders and Herman Miller scored a breakout, while the S&P; 500 and Dow Jones today aimed to turn the week positive.
The Bank of England voted unanimously to hold interest rates at 0.75% and maintain its government purchases at £435 billion. The Bank of England said underlying growth has slowed, but remains slightly positive, and that a degree of excess supply appears to have opened up within companies. "Entrenched Brexit uncertainties and slower global growth have led to the re-emergence of a margin of excess supply. Increased uncertainty about the nature of EU withdrawal means that the economy could follow a wide range of paths over coming years. The appropriate response of monetary policy will depend on the balance of the effects of Brexit on demand, supply and the sterling exchange rate," the central bank said.
The U.K. government has submitted documents to the European Commission that outline in writing for the first time Boris Johnson's ideas on how to end the Brexit impasse, BuzzFeed News reported, citing three sources. The documents in particular focus on how to get around the issue of the so-called backstop, though the report didn't say what those proposals were. The pound exchanged hands at $1.2482, up from $1.2472 on Wednesday.
U.K. retail sales fell 0.2% in August, as the prior month's gain from Amazon Prime Day reversed with a drop in non-store retailing. Economists polled by FactSet had forecast a 0.2% dip. The year-on-year growth rate slowed to 2.7% from 3.3%.
(For a live blog on European stocks, type LIVE/ in an Eikon news window) Sept 19 (Reuters) - European shares edged higher on Thursday, helped by a rise in banks, after the U.S. Federal Reserve cut interest rates but set a higher bar for further reductions. European banks rose 1.1%, the most among the major sectors. The pan-European STOXX 600 index rose 0.2% with lender-heavy Milan and Madrid outperforming.
Here’s a look at what to expect when the Bank of England’s latest interest-rate decision is announced at 7 a.m. Eastern on Thursday.
Global stocks traded mixed Thursday, with U.S. equity futures indicating modest declines, as investors picked through two major interest rate decisions from major central banks, while preparing for a third later today, while keeping a keen eye on developments in Wall Street's overnight lending markets.
Earnings news sent Adobe and FedEx lower Wednesday. Insurer Travelers dragged on the Dow Jones today, ahead of the Fed policy decision.
Investing.com -- Shares in International Consolidated Airlines Group rose 2.0% Wednesday after BALPA, the union representing British Airways pilots, said it would call off strike action planned for next week.
European stocks on Wednesday leaned higher ahead of a key U.S. interest rate decision. After dropping for two sessions, the Stoxx Europe 600 index (XX:SXXP) increased 0.07% to 389.62, led higher by banks and insurers. Attention in markets turned to the Federal Reserve, with the central bank expected at 2 p.m. Eastern — after European markets close — to announce that it’s reducing its key interest rate by a quarter-point, cutting rates for the second straight meeting.
U.K. consumer prices slowed to 1.7% year-over-year growth in August from 2.1% in July, the Office for National Statistics said Wednesday. Economists polled by FactSet expected a 1.9% rise. Core CPI slowed to 1.5% from 1.9%. The ONS said the decline came from principally games, toys and hobbies, and cultural services, clothing and sea fares. The pound was trading at $1.2452, down from $1.2501 on Tuesday.