Europe opened marginally lower with the FTSE100 down 0.5% and DAX 1.1% following from Asia’s close. Last night, two U.S Fed officials provided hawkish comments stating they would back a rate-hike in April. Last week’s FOMC statement, April remains “live” which allows for monetary policies to be changed.
UK quick round up:
Wolseley (LON:WOS) posted 1H results – Revenue of £6,795M from the ongoing businesses (2015: £6,418M) was 5.9% ahead and 2.7% ahead on a like-for-like basis against strong prior year comparatives. Trading profit in the ongoing businesses was £410M (2015: £390M), 5.1% ahead of last year. Profit before tax of £367M compared to £103M in the same period last year which included a significant impairment charge. Basic EPS from continuing operations were 103.5p (2015: 4.6p). An interim dividend of 33.28p per share
(2015: 30.25p per share), an increase of 10%.
United Utilities Group (LON:UU) posted a trading update “Current trading is in line with the group’s expectations for the year ending 31 March 2016. Group revenue is expected to be marginally higher than last year, as the impact of lower allowed regulated revenue for 2015/16 is more than offset by higher than assumed volumes and an increase in sales in our non-regulated business. Underlying operating profit for 2015/16 is in line with management expectations, albeit lower than 2014/15. Reported operating profit will be impacted by additional costs and asset impairments incurred in relation to the unprecedented flooding incidents which occurred during December 2015, although we expect these charges to be largely offset by insurance proceeds.”
Bellway (LON:BWY) reported 1H results: Profit before taxation rose by 42.6% to £226.6M (2015 – £158.9M) (…) EPS rose by 43.7% to 148.7p (2015 – 103.5p). (…) the Board to declare an interim dividend of 34.0p per share (2015 – 25.0p), a rise of 36.0% compared to the same period last year.
Thomas Cook Group (LON:TCG) published a pre-close trading update: “Bookings continue to be disrupted by a volatile geopolitical backdrop, as some customers postpone their holiday decisions, leading to a later booking pattern for the Summer season.” “Maintain our previous guidance for the full year, but as highlighted at our last update, this is dependent on seeing a sustained recovery in customer confidence as we progress through the Summer season.”
IG Group (LON:IGG): “Revenue in the third quarter reached a new record level of £122.0M, 18% ahead of the same period in the prior year, and around 9% ahead of the second quarter of the 2015 financial year, the previous highest quarter.”
HSBC (LON:HSBA) has sold its loans written to Irish oil and gas explorer Petroceltic International (LON:PCI) at appx. 30% of face value, reported Bloomberg citing sources with knowledge of the deal.
Global News
Asian stocks were hit by hawkish comments from U.S. Federal Reserve officials backing an interest rate hike in April, confusing the monetary policy outlook less than a week after Fed Chair Janet Yellen had set out a more cautious path to interest rate increases this year. The Shanghai Composite Index lost 0.4%. Japan’s Nikkei stock index added 1.9%.
Oil prices rose during the Asian trading session this morning, adding to gains from the previous session after data showed U.S. crude inventories fell for the first time since January and as commodity prices broadly strengthened. U.S. crude futures for May were up 18 cents at $41.70 a barrel, after settling up 0.8% at $41.54 on Monday. Brent crude futures for May delivery were 17 cents higher at $41.71 a barrel after rising 0.8% on Monday. Iran may join other oil producers planning to freeze production to support prices at a later date, OPEC’s secretary general said on Monday.
US stocks closed little changed on Monday. The S&P 500 gained 0.1 %, to 2,051.6. Sherwin-Williams (NYSE:SHW) fell 5.3% after it agreed to buy rival U.S. paint company Valspar (NYSE:VAL). Valspar shares jumped 23.1%. IHS (NYSE:IHS) rose 10.3 % after the U.S. business research provider said it would buy London-based Markit (NASDAQ:MRKT) in an all-stock deal valued at about $5.9 billion. Markit’s Nasdaq-listed shares rose 13.6%. Apple (NASDAQ:AAPL) stock ended flat at $105.91.
Global Market Data:
FR 09:00: Mar P Markit France Manufacturing PMI, exp.: 50.2
FR 09:00: Mar P Markit France Services PMI, exp.: 49.5
FR 09:00: Mar P Markit France Composite PMI, exp.: 49.6
GE 09:30: Mar P Markit/BME Germany Manufacturing PMI, exp.: 50.8
GE 09:30: Mar P Markit Germany Services PMI, exp.: 55
GE 09:30: Mar P Markit/BME Germany Composite PMI, exp.: 54.1
GE 10:00: Mar IFO Business Climate, exp.: 106
GE 10:00: Mar IFO Current Assessment, exp.: 112.7
GE 10:00: Mar IFO Expectations, exp.: 99.5
EC 10:00: Mar P Markit Eurozone Manufacturing PMI, exp.: 51.4
EC 10:00: Mar P Markit Eurozone Services PMI, exp.: 53.3
EC 10:00: Mar P Markit Eurozone Composite PMI, exp.: 53
UK 10:30: Feb CPI MoM, exp.: 0.4%
UK 10:30: Feb Retail Price Idx, exp.: 260.2
UK 10:30: Feb RPI MoM, exp.: 0.5%
UK 10:30: Feb PPI Input NSA MoM, exp.: 0.5%
UK 10:30: Feb PPI Output NSA MoM, exp.: 0%
UK 10:30: Feb PPI Output Core NSA MoM, exp.: 0.1%
UK 10:30: Feb Public Finances (PSNCR)
UK 10:30: Feb Central Government NCR
UK 10:30: Feb Public Sector Net Borrowing, exp.: 5.1B
UK 10:30: Feb PSNB ex Banking Groups, exp.: 5.9B
GE 11:00: Mar ZEW Survey Current Situation, exp.: 53
GE 11:00: Mar ZEW Survey Expectations, exp.: 5.4
EC 11:00: Mar ZEW Survey Expectations
US 14:00: Jan FHFA House Price Idx MoM, exp.: 0.5%
US 14:45: Mar P Markit US Manufacturing PMI, exp.: 51.9
US 15:00: Mar Richmond Fed Manufact. Idx, exp.: 0%
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