|Day's Range||7,507.59 - 7,642.21|
|52 Week Range||6,734.00 - 7,727.50|
The FTSE 100 surged on Friday as fears over the coronavirus in China were eased by the World Health Organization.
European stocks rebounded sharply on Friday as the World Health Organization eased concerns over the coronavirus crisis in China.
On Thursday, ECB President Christine Lagarde told a news conference that risks to growth in the Euro Zone remained tilted to the downside.
(Bloomberg) -- Coutts & Co., the private banker to Queen Elizabeth II, is famed for its ornate London offices and white-glove service to wealthy clients.But it isn’t above some bargain-hunting, and these days the bank is looking for value close to home: the stocks of mid-size British companies.The reason is Brexit. With U.K. Prime Minister Boris Johnson passing his withdrawal agreement this week and the country poised to depart the European Union at the end of the month, uncertainty surrounding the process is beginning to clear. That has made Coutts bullish on smaller manufacturers and other U.K. firms that may benefit from rising confidence in the domestic economy.“Ever since the referendum passed in June 2016, U.K. equities have been unloved, undervalued, and under-owned,” said Monique Wong, senior portfolio manager at the 328-year-old bank. “But a big part of the Brexit story is now behind us and mid-caps have been trading at a bigger discount than large caps.”Work AheadEven so, there’s still work ahead as officials in London and Brussels hash out a new trade agreement. Johnson’s insistence on completing a deal by the end of the year may stoke market risk if months tick by with little progress. Should sterling fall as a result, that could favor the stocks of larger U.K. companies that rely on exports for growth.Still, many investors have seen enough to make them buyers of smaller British equities, Wong said. Last year, the FTSE 250 index of mostly mid-size companies returned 29%, outpacing the 17% advance of the large-cap FTSE 100. Between June 24, 2016 -- the day after the Brexit vote -- and the end of 2018, it was the export-heavy FTSE 100 that outperformed.Coutts, a unit of Royal Bank of Scotland Group Plc, is also high on another unloved group: stocks from mainland Europe. As fears of a U.S. recession dissipate and the trade war between Washington and Beijing eases, demand may rise for European manufactured goods and lift equities, especially in Germany, Wong said.“Europe is a leveraged play on the global economic cycle,” she said.Coutts’s growth strategy portfolio, which combines stocks, bonds and alternative assets, returned 17% last year.To contact the reporter on this story: Edward Robinson in London at email@example.comTo contact the editors responsible for this story: Pierre Paulden at firstname.lastname@example.org, Steven Crabill, Peter EichenbaumFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Finablr, the financial services group that owns Travelex, shed more than a quarter of its value on Friday after it emerged that more than half of its stock had been used by majority owner and billionaire BR Shetty as security against debt from buying the British currency platform in 2015. India-born Mr Shetty is one of the region’s best-known billionaires. In 1980, he set up UAE Exchange, a remittance business, which expanded in tandem with the growing expatriate population working in the oil-rich federation.
European stocks fell on Thursday as the European Central Bank left key monetary policy unchanged as expected, with investors backing away from perceived riskier assets such as equities amid a growing coronavirus crisis out of China. Worries about international trade policy were also resurfacing for investors after comments made by President Donald Trump in Davos at the World Economic Forum. Extending earlier losses, the Stoxx Europe 600 index (XX:SXXP) dropped 0.6% to 420.29, and headed for its fourth-straight losing session.
U.K. macroeconomic data could surprise on the upside and the U.K. may not cut rates after all. Good for banks, say analysts at Jefferies.
European investors are getting ready for an ECB meeting, but are distracted by concerns over the coronavirus in China. Trade worries are also cropping up.
(Bloomberg) -- In Europe, a rising tide isn’t lifting all boats equally.The region’s main stock index may be reaching new peaks in 2020, but a majority of country benchmarks are still some way off their heights, particularly those in southern Europe that were worst hit in the euro-area debt crisis. Near the top of that list is Italy, where renewed political uncertainty roiled bank stocks on Wednesday, pushing the FTSE MIB Index even further away from a 20-year-old record.In contrast, Germany’s DAX just became the latest gauge to reach a new peak, boosted by fading trade tensions and improving macro data. That came close on the heels of the Stoxx Europe 600 Index, which smashed its previous closing high of 2015. The U.K.’s FTSE 100, freshly in demand amid receding Brexit worries and bets on global growth, is nearest to joining the club next.Growing concern about China’s coronavirus outbreak weighed on European equities on Thursday, with most country gauges in the red. That’s adding fresh risk to a market at a time when most of Europe’s lagging benchmarks are yet to recover from the aftershock of the global financial crisis. Profit growth too has barely budged despite repeated bullish calls each year.In fact, the descent of southern European gauges was so acute during the debt crisis that even a strong outperformance now only closes the gap a little: Despite last year’s world-beating 49% rally, the Greek ASE remains farthest from the peak -- about 85%, while gauges in Spain, Italy and Portugal are about 40% or more away from their highs.Rallies in the DAX and FTSE 100 gauges indicate the exporter-heavy indexes have found favor amid improving global macro conditions. The Swiss Market Index is at record levels, having benefited from its defensive composition, while France’s industrial-heavy CAC 40 Index and the Dutch AEX Index -- home to multinational companies such as Unilever and ASML Holding NV -- are about 13% off their peaks.(Updates with today’s market move in fourth paragraph.)To contact the reporter on this story: Namitha Jagadeesh in London at email@example.comTo contact the editors responsible for this story: Blaise Robinson at firstname.lastname@example.org, Paul JarvisFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
China's move to ban all travel from two of its biggest cities heading into the Lunar New Year has increased concern for the potential spread of the deadly coronavirus and put global financial markets in a defensive mood Thursday.
European stocks struggled to stay positive on Wednesday, as investors continued to watch for developments in the China coronavirus outbreak. The DAX was clinging to a fresh record.
Global markets rebound after virus-related fears subside. Risk is still present so traders should be cautious with equity markets trading at all-time highs.
Speaking generally, it tends to be the case that when investors get wind of something non public that might be beneficial to the share price, such as takeover interest, they’ll want to see it publicised. In our view, Quilter would be a good candidate for Private Equity, rather than public market, ownership at the present time, given the extensive ongoing restructuring and platform transformation project.
London stocks struggled along with Europe as investors continued to keep an eye on China’s coronavirus, which is now in five countries and has infected hundreds, as well as killing nine.
London-focused housebuilder Berkeley Group plans to almost double its capital return to shareholders to £1bn over the next two years in a sign that last year’s general election has returned confidence to the sector. The FTSE 100 group did not explicitly mention Brexit or the recent Conservative victory in its update on Wednesday but hinted that greater political certainty was a factor in the increase of £455m on top of the existing dividend and share buyback programme. “Since 2016 [when the UK voted to leave the EU] like all responsible businesses, Berkeley has been mindful of the volatile operating environment and has been cautious in its investment,” the housebuilder said.
European stocks struggled for a foothold on Wednesday amid a barrage of company news and as investors tried to shake off fears over China’s coronavirus. German stocks are hovering at a record.
China's swift reaction to the coronavirus outbreak, as well as a series of stronger-than-expected U.S. earnings last night, has Wall Street futures, as well as global stocks, on the rebound Wednesday.
U.K. employment grew by 208,000 in the three months to November as the unemployment rate stayed at 3.8%, the Office for National Statistics reported Tuesday. Average weekly earnings stayed at 3.2%, and the claimant count for December edged up to 3.5% from 3.4%. The British pound rose after the publication of the data, with sterling rising to $1.3028 versus Monday's close of $1.3009.