Thursday, August 20, 2015

Global financial Markets Update




The FTSE 100 is called to open 40 points lower at 6363.

UK Gilt 10 Year Yield 1.83%, Spot Gold $1139.40 +5.11, Brent Crude $46.89. -0.57.

A tumble in oil prices Wednesday prompted investors to sell shares of energy companies, weighing on the broader stock market. Stocks had briefly pared losses to trade near the flatline after the minutes from the Federal Reserve's July meeting showed no clear sign that officials are ready to raise interest rates next month. The Dow Jones Industrial Average fell 162.61 points, or 0.9%, to 17348.73, capping a turbulent session. The blue-chip index had dropped as much as 229 points and briefly recouped all losses in the wake of the Fed minutes. The S&P 500 declined 17.31 points, or 0.8%, to 2079.61 and the Nasdaq Composite lost 40.30 points, or 0.8%, to 5019.05

PRESS COMMENTARY  



China's stock markets swung wildly on Wednesday as the authorities battled to restore investor confidence; shares on China’s main market - the Shanghai Composite - ended the day 1.2% higher having earlier plunged by as much as 5%, Telegraph.

Britain’s banks and finance firms performed surprisingly well in the credit crunch and its aftermath because the industry is enormous, with good links to countries all around the world, according to analysis from leading academics, Telegraph



COMPANY NEWS



U.K. gambling group Rank Group PLC (RNK.LN) said full-year profit rose and lifted the dividend by a quarter.

Royal Ahold NV, reported second-quarter profit that topped analysts’ estimates as the company revamped U.S. stores and online sales grew in the Netherlands.

Primary Health Properties PLC (PHP.LN), said the net asset value rose 6.3% in the first half, with earnings also showing year-on-year gains.

KAZ Minerals PLC (KAZ.LN)  swung to a first-half net loss as the copper price tumbled to multi-year lows. The company also reaffirmed its full-year copper output guidance despite a delay to the commissioning of one of its projects as a result of a fire last week.

WH Smith PLC (SMWH.LN) reported that fiscal 2015 outcome is expected to be slightly ahead of the consensus of analysts' expectations due to a strong second half performance in the travel division.

Sportech PLC (SPO.LN)  reported a fall in first half pretax profit, mainly due to the absence of any large exceptional gains in the period, and said that it remains confident in the underlying strength of the business.

Bank of Georgia Holdings PLC (BGEO.LN) reported a rise in interim net profit and said it expects a strong second half performance.

DNO Posts 2Q Net Loss; CWI Production Rises to 99.6kboe/d

Premier Oil PLC (PMO.LN) swung to an interim pretax loss as low oil prices hit revenues and kept its full year production guidance at 55,000 barrels of oil equivalent per day.

Straumann forecasts 2015 organic rev. growth in mid- to higher-single-digit range, saw growth in mid-single- digit range; sees 2015 adj. Ebit margin target in “low twenties,” saw at least 20% (organic).

Meggitt PLC (MGGT.LN) said that it has won a three-year fuel cell contract worth up to $39.8 million from the U.S. Defense Department.

Stock Spirits Group PLC (STCK.LN)  reported a massive fall in first half pretax profit due to ongoing market disruption in Poland and said that 2015 earnings, before interest, taxes, depreciation and amortization, is anticipated to be between 60 million Euros ($66.32 million) and EUR68 million.

Source Quilter Cheviot

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