|Day's Range||7,322.01 - 7,376.31|
|52 Week Range||6,536.50 - 7,727.50|
(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.
Investors also bought into the so-called defensive sectors such as healthcare , utilities , real-estate and food and beverage . Global equity markets were spooked at the start of the week by attacks on Saudi Arabia's oil facilities that sent oil prices soaring and heightened geopolitical concerns in the Middle East.
The FTSE 100 was down 0.3% by 0815 GMT, while the domestically focused FTSE 250 index was 0.4% higher as it tracked gains in the local currency. Hopes Britain could yet strike a deal to exit the European Union after European Commission President Jean-Claude Juncker said on Thursday one was possible helped the pound extend overnight gains versus the dollar to a two-month high.
The FTSE 100 index ended 0.6% higher and the mid-cap FTSE 250 index rose 0.2%, with the financial sector boosting both the indexes. Central banks around the world have been loosening monetary policy to stem a slowdown in economic growth. CMC Markets analyst Michael Hewson said the Fed's signal to hold back on further cuts was probably not priced in.
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.
The FTSE 100 ended 0.1% lower, while the domestically-focussed mid-cap FTSE 250 index added 0.1%. The Federal Reserve is set to conclude its latest policy meeting on Wednesday, with expectations that it will cut interest rates for the second time this year as it looks to cushion the economy from the impact of an ongoing trade war with China. "The mood today has been one of cautious optimism, as the U.S. central bank is tipped to lower interest rates, but seeing as the U.S. economy is in good shape, there is the possibility the update won't be as dovish as expected," CMC Markets analyst David Madden said.
Shares in Persimmon and Taylor Wimpey were lower on Tuesday after a government body criticised the public funding Help to Buy scheme which makes it easier for first-time buyers to afford a home and has been a big boost to British housebuilders. At 0743 GMT, Taylor Wimpey , Persimmon and Berkeley Group were all down 1.3% and 1.6%, lagging the broader FTSE 100 index, which was up 0.2%. "Help to Buy was originally intended as a short-lived scheme, but will now last for 10 years and consume over 8 times its original budget, yet the value achieved from its extension is uncertain," the House of Commons' Public Accounts Committee (PAC) said in a report published on Tuesday.
The FTSE 100 was marginally down at 0.01%. The FTSE 250 fell 0.1%, dragged lower by a collapse in the shares of fertiliser maker Sirius Minerals after the company cancelled the bond tender at the heart of a crucial project in northern England. BP fell 1.4% as crude prices dropped after a top Saudi Arabian source told Reuters that production could be fully back on line within weeks following weekend attacks that halved the kingdom's output.
Investing.com -- European stock markets opened lower Tuesday as concerns over the spike in oil prices continued to weigh on markets. Asian stocks had also weakened overnight, after the U.S. reportedly shared intelligence with Saudi Arabia showing that Iran was responsible for the weekend attack on its oil facilities. Saudi Arabia hasn't yet joined the U.S. in publicly blaming Iran, something that could raise the likelihood of a coordinated response against the Islamic Republic.
It’s a big week ahead for the markets. The FED, the BoE and Brexit are in focus, with stats and chatter on trade also needing some attention.
The FTSE 100 rose 0.3%, with homebuilder Barratt jumping nearly 6% to top the gainers. The country's big banks Lloyds , Royal Bank of Scotland and Barclays added more than 5%. A surge in the pound was triggered by a media report that Northern Ireland's largest political party had agreed to accept some European Union rules after Brexit.
Global markets rise on trade hopes and stimulus plans, the S&P; 500 is striking distance from new all-time highs.
Trump blasts the FOMC again as we gear up or another meeting, he wants zero interest rates but the data just doesn’t support it.
(Bloomberg) -- Neil Woodford has lost at least 43.5 million pounds ($54 million) from selling some stakes from his frozen flagship fund.The embattled money manager took the biggest hit on shares in NewRiver REIT Plc. Woodford spent about 181 million pounds building up his stake in the U.K. retail landlord, but recouped just 131 million pounds when he unloaded the shares, according to publicly available information and Bloomberg calculations. He made money on just two of 10 companies: BCA Marketplace and Oakley Capital.A representative of Woodford Investment Management said the money manager and his team “continue to make progress” in building a “much more liquid portfolio” for the flagship fund. When it reopens, the fund “will continue to be focused on undervalued companies, and the majority of them will be FTSE 100 and FTSE 250 index constituents,” the spokesman said.Woodford stunned the financial world in early June when he halted withdrawals from his LF Woodford Equity Income Fund after a run of poor results led to mounting redemption requests. He has since lost key executives and long-time backers, has been hit by criticism from a top lawmaker and faces an investigation by the U.K. markets regulator.The firm has said the decision was made to give Woodford time to sell down the fund’s holdings of lightly traded stocks, and that he isn’t a forced seller.Why ‘Liquidity Mismatch’ Is Scaring the Bond Market: QuickTakeThe bright spots in Woodford’s sales spree have come from BCA Marketplace and Oakley Capital. The money manager invested in BCA in 2015 at a volume-weighted average price of 139 pence per share, and exited at 241.5 pence, resulting in a profit of 59.6 million pounds, Bloomberg calculations show. Selling the Oakley stake brought in another 33.8 million pounds.Bloomberg’s analysis focuses on stakes that Woodford has sold in their entirety. The calculation of his gains and losses excludes dividend payments.Link Fund Solutions Ltd., the administrator of Woodford’s flagship, has said its goal of lifting the suspension in early December is realistic. The fund has 3.1 billion pounds of assets under management, according to Morningstar.(Adds background on freeze in fourth paragraph.)To contact the reporters on this story: Suzy Waite in London at firstname.lastname@example.org;Carla Canivete in London at email@example.comTo contact the editors responsible for this story: Shelley Robinson at firstname.lastname@example.org, Patrick HenryFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The FTSE 100 rose 1%, its best one-day performance in nearly ten days, while the midcap index added 1.2%. London Stock Exchange took the top spot on the main bourse with a 6% jump after Hong Kong Exchanges and Clearing made a surprise $39 billion takeover approach, a deal that would create a global trading powerhouse. "It's a bold move and one that appears to have a low chance of success," Markets.com analyst Neil Wilson wrote.
Marks & Spencer's exit from the FTSE 100 underlines how times have changed since the blue-chip index was launched in 1984, when it was dominated by British companies including household names like M&S, Cadbury and House of Fraser. Home-grown talent is increasingly absent from the FTSE, now valued at $2.4 trillion (1.94 trillion pounds), as failure to grow domestically or make the cut internationally has seen companies disappear via mergers, demotions, de-listing or privatisation. MFI Furniture was among founding members of the index that failed to survive after privately-owned IKEA entered the UK market in the 1980s.