By ADVFN.com
ADVFN offer FREE streaming stocks and shares data form around the world. SEE

London open: Footsie sinks to 5,300 early on

Market Movers


techMARK 1,801.70 -0.84%
FTSE 100 5,301.58 -1.14%
FTSE 250 9,988.02 -0.56%
The Footsie sunk towards the 5,300 level in early trading with worrying economic news from Asia weighing on sentiment. Also impacting market sentiment negatively, reports that a U.S. congressional super-committee may have failed to reach an agreement on which budget deficit reduction measures are needed. No less important, at first glance the first reactions by some analysts to the Spanish Presidential election results, last night, seem a bit mild at best. London's blue chip index now trades at levels not seen since early October.

STOCKS FOLLOW ASIAN MARKETS LOWER

Asian markets dropped lower this morning as the latest economic data provided a drag.

Japan's Ministry of Finance revealed that exports fell by an annual rate of 3.7% last month, the first decline in three months, as shipments to China, the US and Europe weakened. Furthermore, with imports rising 18% due to increased energy prices, the nation registered a deficit of 2.738bn yen.

Singapore's government expect that the nation could grow by just 1-3% in 2012, down from the 5%-expected growth in 2011.

Meanwhile, Spain has voted the centre-right Popular Party to power hoping that party leader Mariano Yajoy will be able to bring an end to the country's mammoth debt troubles. "There will be no enemies for me other than unemployment, the deficit, excessive debt and economic stagnation," Rajoy said.

RESOLUTION, PHOENIX HEAD OPPOSITE DIRECTIONS AFTER TERMINATING DISCUSSIONS

Insurance giant Resolution fell over 3% lower after confirming that talks regarding the possible acquisition of Phoenix Group have been terminated.

Phoenix, on the hand, roared over 13% higher on the FTSE 250 after saying that it has received a number of approaches from other parties, most notably private equity firm CVC Capital Partners.

Centrica was a rare bright spot after signing a deal with the Norwegian company Statoil to buy 13bn worth of gas over ten years. In a separate transaction, Centrica has also announced it is to buy some of Statoil's assets in the Norwegian sector of the North sea for 965m, with a further 63m to be paid on the future performance of the assets.

Capital Shopping Centres fell lower after it put in place a 375m revolving credit facility, replacing the existing undrawn facility of 248m which is due to expire in June 2013.

Miners Fresnillo, Randgold Resources and Kazakhmys were among the worst performers, with signs of a slowdown in Asia likely fueling demand concerns.

BC

FTSE 100 - Risers
Essar Energy (ESSR) 247.00p +1.65%
Capita Group (CPI) 643.50p +0.55%
Centrica (CNA) 289.90p +0.35%
Intertek Group (ITRK) 1,909.00p +0.05%

FTSE 100 - Fallers
Hargreaves Lansdown (HL.) 456.00p -4.16%
Johnson Matthey (JMAT) 1,790.00p -3.09%
Resolution Ltd. (RSL) 241.20p -3.09%
Fresnillo (FRES) 1,664.00p -2.75%
Randgold Resources Ltd. (RRS) 6,995.00p -2.30%
Royal Bank of Scotland Group (RBS) 20.11p -2.24%
British Land Co (BLND) 458.80p -2.22%
ARM Holdings (ARM) 585.00p -2.17%
Kazakhmys (KAZ) 844.00p -2.14%
Lonmin (LMI) 999.50p -2.11%

FTSE 250 - Risers
Phoenix Group Holdings (DI) (PHNX) 555.00p +12.78%
Sports Direct International (SPD) 246.40p +5.71%
BBA Aviation (BBA) 176.20p +3.04%
Heritage Oil (HOIL) 190.80p +2.86%
Diploma (DPLM) 310.00p +2.55%
Shanks Group (SKS) 108.70p +1.87%
Moneysupermarket.com Group (MONY) 107.80p +1.41%
Kenmare Resources (KMR) 36.24p +1.34%
Mothercare (MTC) 134.70p +1.28%
Anglo Pacific Group (APF) 280.00p +1.08%

FTSE 250 - Fallers
Allied Gold Mining (ALD) 165.10p -4.84%
Dixons Retail (DXNS) 10.23p -3.49%
Aquarius Platinum Ltd. (AQP) 172.80p -3.30%
London & Stamford Property Ltd. (LSP) 113.30p -3.16%
Exillon Energy (EXI) 285.10p -3.16%
Drax Group (DRX) 551.00p -3.08%
Cape (CIU) 326.00p -2.92%
Euromoney Institutional Investor (ERM) 661.50p -2.72%
Great Portland Estates (GPOR) 327.00p -2.68%


--------------------------------------------------------------------------------

Sippdeal
An award winning provider of SIPPs, ISAs and share dealing accounts. With online dealing from just £4.95, an annual cash bonus of up to 0.5% on fund investments and no charges for; set up, annual administration and payments in – Sippdeal could be ideal for you. To find out more click here


--------------------------------------------------------------------------------

UK Event Calendar
Monday November 21

INTERIMS
Invista Foundation Property Trust Ltd., Mitie Group

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Current Account (EU) (09:00)

GMS
HydroDec Group, Oxford Pharmascience Group , Wincanton

FINALS
Diploma

EGMS
Thames River Multi Hedge PCC Ltd. Realisation Shares

AGMS
Origin Enterprises, Worldspreads Group

FINAL DIVIDEND PAYMENT DATE
JPMorgan Emerging Markets Inv Trust




--------------------------------------------------------------------------------

Selftrade
Dealing, Shares ISA and SIPP Dealing accounts available with Selftrade. Standard flat £12.50 charge per online trade and an annual Management Fee of £35 + VAT with 3 free trades. Frequent trader rate £6 per online trade. No dealing fee on fund purchases. Extensive market data and news plus advanced charting and technical analysis.
Clik here


--------------------------------------------------------------------------------

Europe open: Markets tumble over 2% early on

FTSE 100 Euronext Dax perf CAC 40


European stocks tumbled lower on Monday morning with a shake-up in Spanish politics, worrying data from Asia and risks to France's credit rating weighing heavily on investors' minds.

By 10:18 in Paris, France's CAC 40 index was down 72 (-2.39%) at 2,925, the IBEX 35 in Spain was 170 lower (-2.05%) at 8,140, while the DAX dropped 152 (-2.63%) to 5,648.

SPANISH ELECTION

The centre right People's Party last night obtained a majority of seats in the Spanish Parliament (186 seats out of 350), its best results ever, but against a back-drop of severe economic uncertainty.

Nonetheless, yesterday's results may assuage some observers' concerns regarding the supposed lack of a democratic mandate for reforms in the Eurozone periphery, as can probably be said of other countries where elections have taken place recently. In the opinion of economists at Digital Look the new government does seem to have a mandate for reforms, but an even stronger showing might have been preferrable given the gravity of the current situation.

The new Prime Minister-elect, Mariano Rajoy, told reporters: "Hard times lie ahead...We are going to govern in the most delicate situation Spain has faced in 30 years".

ASIAN DATA & US DEFICIT PROBLEMS

Elsewhere, Japan's Ministry of Finance revealed that exports fell by an annual rate of 3.7% last month, the first decline in three months, as shipments to China, the US and Europe weakened. Meanwhile, Singapore's government expect that the nation could grow by just 1-3% in 2012, down from the 5%-expected growth in 2011.

Other news likely to be weighing on sentiment is that the US bipartisan committee, tasked with cutting $1.2trn from the country's deficit, is expected to reveal that it has failed to agree on a plan.

FRANCE'S AAA RATING AT RISK

Meanwhile, Moody's has warned that increased government bond yields and an uncertain economic outlook has put France's AAA credit rating at risk.

"Elevated borrowing costs persisting for an extended period would amplify the fiscal challenge the French government faces amid a deteriorating growth outlook, with negative credit implications," credit office Alexander Kockerbeck said.

The yield on a French 10-year government bond now stands at around 3.56%, well off its 52-week low of 2.33% and worrying close to the 52-week high of 3.83%.

COMPANY NEWS

Banks were providing a drag across the continent, with Commerzbank, Deutsche Bank, Societe Generale and BNP Paribas dropping lower in Frankfurt and Paris.

LeGrand was out of favour after Credit Suisse downgraded its rating on the wiring devices group from outperform to neutral.

Carrefour fell on rumours that its largest shareholders are wanting to replace chairman and chief executive officer Lars Olofsson.

BC

CAC 40 - Risers
-

CAC 40 - Fallers
ArcelorMittal SA (MT) 12.55 -4.02%
BNP Paribas (BNP) 27.00 -3.78%
ST Microelectronics (STM) 4.84 -3.66%
Accor (AC) 19.05 -3.59%
AXA (CS) 9.17 -3.52%
Societe Generale (GLE) 16.09 -3.45%
Credit Agricole (ACA) 4.23 -3.29%
Schneider Electric (SU) 37.71 -3.23%
Vallourec (VK) 42.15 -3.10%


--------------------------------------------------------------------------------

Traders can turn 3k into 150k Learn how
Earn a tax free income trading, from just 20 minutes a day – no experience needed
Our powerful trading software will help you decide when to enter trades and how to maximise profits.

Register for a FREE brochure and trading guide, Click Here.




--------------------------------------------------------------------------------

US open: Leading economic indicators come in ahead of forecasts
The main US equity benchmarks are now trading mixed (Dow Jones Industrial: 38, Nasdaq Comp.: -4, S&P 500: 3), despite futures markets having indicated a higher open earlier on, with many observers having attributed those gains to a Dow Jones Newswire report that there is a growing acceptance in Europe of a plan for the European Central Bank to lend funds directly to the International Monetary Fund to finance a periphery rescue and reform package.

Similarly, Bloomberg cites World bank President Robert Zoellick as having indicated that countries such as the US or China would be willing to support Europe via the International Monetary Fund.

Curiously, reports that Italian Prime Minister Mario Monti has won his no-confidence vote in the lower house of the Italian parliament barely elicited a reaction from markets.

Of interest as well, and positive for stocks, reports that several banks and brokers are now revising their projections for US fourth quarter GDP growth higher.

Hewlett Packard is leading gains in the pre-open after naming activist Ralph Whitworth to its board.

Boeing has received an order for 230 aircraft from Indonesian carrier Lion Air.

The latest quarterly results out from Gap and Marvell Technology have comein better than expected.

Goldman Sachs has started its coverage of Cree at buy.

Nike has announced a 165 increase in its quarterly dividend.

Salesforce.com is down sharply following its latest quarterly results.

MACROECONOMY

The Conference Board's index of leading economic indicators rose 0.9% on month in October (Consensus: 0.6%).

OTHER MARKETS

10 year US treasuries are now falling by 12/32 dollars, with yields at 2.0%.

Front month West Texas crude futures are now retreating by 0.22% to the $98.60/barrel level in NYMEX trading.

AB

S&P 500 - Risers
CF Industries Holdings Inc. (CF) $153.94 +3.88%
Hewlett-Packard Co. (HPQ) $28.16 +3.19%
NYSE Euronext Inc. (NYX) $27.40 +3.09%
Cintas Corp. (CTAS) $30.05 +3.05%
Netflix Inc. (NFLX) $78.39 +2.52%
Dr Pepper Snapple Group Inc. (DPS) $36.56 +2.15%
Western Digital Corp. (WDC) $25.80 +2.14%
Micron Technology Inc. (MU) $6.46 +2.05%
J. M. Smucker Co. (SJM) $73.32 +2.05%
Apache Corp. (APA) $99.87 +1.91%

S&P 500 - Fallers
Salesforce.Com Inc. (CRM) $113.81 -9.74%
Gap Inc. (GPS) $18.63 -3.22%
Prudential Fincl Inc. (PRU) $48.92 -3.11%
Monster Worldwide Inc. (MWW) $7.57 -2.70%
H. J. Heinz Co. (HNZ) $51.54 -2.42%
Patterson Companies Inc. (PDCO) $28.68 -2.42%
Citrix Systems Inc. (CTXS) $70.81 -2.26%
Abercrombie & Fitch Co. (ANF) $48.42 -2.20%
Best Buy Co. Inc. (BBY) $26.99 -1.93%
Dentsply International Inc. (XRAY) $33.74 -1.86%

Dow Jones I.A - Risers
Hewlett-Packard Co. (HPQ) $28.16 +3.19%
Coca-Cola Co. (KO) $67.41 +1.19%
Boeing Co. (BA) $66.69 +0.91%
Chevron Corp. (CVX) $100.97 +0.89%
Alcoa Inc. (AA) $9.70 +0.83%
Merck & Co. Inc. (MRK) $35.05 +0.60%
Walt Disney Co. (DIS) $35.35 +0.57%
Procter & Gamble Co. (PG) $63.27 +0.52%
Exxon Mobil Corp. (XOM) $78.19 +0.42%
McDonald's Corp. (MCD) $92.50 +0.23%

Dow Jones I.A - Fallers
Cisco Systems Inc. (CSCO) $18.24 -1.30%
Intel Corp. (INTC) $24.07 -1.11%
Microsoft Corp. (MSFT) $25.27 -1.06%
Home Depot Inc. (HD) $37.37 -0.66%
Bank of America Corp. (BAC) $5.76 -0.60%
Verizon Communications Inc. (VZ) $36.52 -0.49%
3M Co. (MMM) $80.15 -0.35%
JP Morgan Chase & Co. (JPM) $30.39 -0.33%
Johnson & Johnson (JNJ) $63.78 -0.25%
Kraft Foods Inc. (KFT) $34.90 -0.17%

Nasdaq 100 - Risers
Marvell Technology Group Ltd. (MRVL) $14.48 +5.23%
Cintas Corp. (CTAS) $30.05 +3.05%
Foster Wheeler AG (FWLT) $20.02 +1.57%
Nll Holdings Inc. (NIHD) $22.99 +1.51%
Expedia Inc. (EXPE) $27.38 +1.37%
Dell Inc. (DELL) $15.07 +1.01%
Yahoo! Inc. (YHOO) $15.46 +0.78%
Starbucks Corp. (SBUX) $42.35 +0.75%
Liberty Interactive Corp (LINTA) $16.05 +0.72%
eBay Inc. (EBAY) $29.85 +0.69%

Nasdaq 100 - Fallers
Vertex Pharmaceuticals Inc. (VRTX) $28.21 -2.76%
Patterson Companies Inc. (PDCO) $28.68 -2.42%
Citrix Systems Inc. (CTXS) $70.81 -2.26%
Illumina Inc. (ILMN) $29.51 -1.89%
Dentsply International Inc. (XRAY) $33.74 -1.86%
Warner Chilcott Plc (WCRX) $15.21 -1.81%
Autodesk Inc. (ADSK) $33.84 -1.77%
Seagate Technology Plc (STX) $16.47 -1.76%
Applied Materials Inc. (AMAT) $11.34 -1.69%


--------------------------------------------------------------------------------

Read our FREE Report for brighter investment ideas!
Click here to download our unbiased overview of the carbon trading market.


--------------------------------------------------------------------------------

Newspaper Round Up
According to the Financial Times, Spain's centre-right Popular Party, led by Mariano Rajoy, won the biggest election victory in the country's history yesterday, "consigning the incumbent Socialists to the political wilderness and making them the latest casualties of the eurozone's deepening sovereign debt crisis." The Popular Party secured 186 seats in the 350-seat lower house of parliament, the paper says.

"The bipartisan committee tasked with reducing America's $15tn (9.5tn) budget deficit looks close to admitting defeat as its deadline looms," writes the Guardian. The paper says that while the committee has until Wednesday to report a plan to cut $1.2trn from the US's deficit, it is expected to reveal today that there would be no deal. Failure to agree on a plan would "trigger automatic cuts to defence and social welfare programmes starting in 2013," the Guardian says.

According to the Times, police raided Vodafone's India head offices yesterday as part of a multi-billion-pound corruption investigation. "In the latest twist to a scandal that has rocked India's business and political elite and robbed taxpayers of as much as $7bn (4.4bn), Vodafone confirmed that agents from the Central Bureau of Investigation had spent seven hours on Saturday searching its offices in Mumbai and Delhi," the paper says.

"Thomas Cook is planning to close about 200 of its high-street travel agencies in a move which threatens more than 1,000 jobs," reports the Independent. The paper writes that the FTSE 250 travel company, which had already revealed the closure of 75 shops, will report on Thursday that a further 125 will be added to the list, due to its "wide-ranging review of its UK operations".

"The gap between Britain's highest earners and its lowest has reached an all-time high, highlighting the extent to which the economic downturn has hit the poorest households," according to the Telegraph. The paper says that more than 50% of those with an annual salary less than 15,000 have said that their finances have deteriorated in the last three months, compared with just under 20% of those in the highest income bracket, according to a Markit survey.

Some 70% of business leaders said that the economic outlook has worsened since August, as fallout from the Eurozone crisis rattles confidence, writes the Daily Mail. "A survey from the CBI, which holds its annual conference today, will act as a stark reminder to George Osborne of the challenges facing him when he delivers his Autumn Statement in eight days."

Chancellor of the Exchequer George Osborne is reportedly planning a "tax raid" on pensions which could cost savers up to 100,000 each, according to the Daily Mail. "Tax breaks worth 7bn which encourage millions of hard-working Britons to save for retirement could be axed by the Chancellor in his Autumn Statement next week," the paper writes.