Wednesday, April 13, 2016

FINANCIAL MARKETS UPDATE 13/04/2016

The FTSE 100 is called to open 58 points higher at 6300
UK Gilt 10 Year Yield 1.4418 Spot Gold $1247.85 -7.65 Brent Crude $43.92 -77.7
$ per £ 1.4239
$ per € 1.1351
€ per £ 1.2546

U.S. stocks rose to a one-week high as crude pushed past $42 a barrel to overshadow a tepid start to the first-quarter earnings season. Energy producers surged 2.7 percent as crude climbed to a four-month high after Saudi Arabia and Russia were seen agreeing on whether to freeze oil production. Chesapeake Energy Corp. surged the most on record after pledging assets to maintain access to financing. Alcoa Inc. slid 3.4 percent after the largest U.S. aluminum producer cut its forecast for global demand. Juniper Networks Inc. plunged 7.5 percent after sales missed forecasts, dragging the semiconductor industry lower. The S&P 500 added 1 percent to 2,061.74 at 4 p.m. in New York. The index has alternated gains and losses for four days and is now little changed for the month of April. The Dow Jones Industrial Average climbed 165.05 points, or 0.9 percent, to 17,721.46.



 

PRESS COMMENTARY

• The Daily Telegraph: A British exit from the EU risks causing "severe global damage" that would drag down UK growth for years to come, the International Monetary Fund has warned.

• Financial Times: The heads of the world's largest oil trading houses sought to draw a line under nearly two years of falling prices on Tuesday as Brent crude rose to its highest level so far in 2016.

COMPANY NEWS

Tesco PLC swung to a full-year profit as the British supermarket giant bounced back from a year-earlier period weighed down by property write-downs, even as revenue continued to decline. For the year to Feb. 27, Tesco's pre-tax profit was GBP162 million ($230.8 million), compared with a loss of GBP6.33 billion a year ago.

McCormick Abandons Premier Foods Bid, Says Board Wants Too Much. McCormick & Co. abandoned plans to make a takeover bid for Premier Foods Plc, saying the U.K. company’s board wants too high a price. McCormick finished a review of Premier’s finances with the cooperation of the company’s management, the Sparks, Maryland- based company said in a statement Wednesday.

U.K. retailer WH Smith PLC (SMWH.LN) reported 11% growth in first half pre-tax profit due to strong performance by both its business units, travel and high street.

De La Rue PLC (DLAR.LN) said it expects full-year underlying operating profit to be around 62 million pounds ($89.7 million), above previous expectations, on a revenue broadly in line with views, adding that expectations for fiscal 2017 remain unchanged.

WS Atkins Says Traded Well Through 4Q; Sees FY In Line. Co. says traded well through 4Q; expects to report underlying results for the year in line with expectations. Says good progress toward 8% group operating margin. Sees net funds of ~GBP190m at March 31.

Halfords 11-Week LFL Up 2.6%, On Track For FY Profit Expectation. Halfords says for 11-wks to April 1, group LFL 2.6%, Retail LFL +3.1%, Autocentres LFL +1.7%. Source Quilter Cheviot

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