European stocks were little changed as Moody’s Investors Service said it may cut Ireland’s credit rating, offsetting better-than-estimated profit at Tesco Plc. U.S. futures fluctuated and Asian shares slipped.
Tesco rose 1 percent after reporting a gain in first-half earnings. Invensys Plc climbed 1.1 percent after Citigroup Inc. recommended the shares. E.ON AG dropped 0.8 percent as HSBC Holdings Plc and Banco Santander SA cut their recommendations on Germany’s largest utility.
The Stoxx Europe 600 Index dropped 0.1 percent to 257.57 at 8:50 a.m. in London, erasing an earlier gain of 0.1 percent. The gauge has rallied 11 percent since its low this year in May as investors speculated that the global economy will avoid another recession even as Europe’s governments slash spending and China moves to cool its growth. Still, concern that peripheral euro- area countries will struggle to repay their debt has left the gauge 5.3 percent below its April high for 2010.
“Overall the environment isn’t too bad for risky assets so don’t be frustrated by the short-term weakness,” said Markus Steinbeis, head of equity portfolio management at the Unterfoehring, Germany-based unit of Pioneer Investments KGmbH, which oversees about $221 billion globally. “We can expect another good earnings quarter with no major disappointments. It’s not surprising to see some consolidation but the market will rise after a short period of weakness.”
The measure declined for a sixth day yesterday, capping the longest stretch of losses since January 2009, as reports on U.S. home sales and factory orders failed to ease concern about the strength of the world’s largest economy. Futures on the Standard & Poor’s 500 Index expiring in December rose 0.2 percent today, while the MSCI Asia Pacific Index fell 0.2 percent.
Ireland Uncertainty
Moody’s said Ireland’s Aa2 rating may be cut after the government pledged as much as 50 billion euros ($68.6 billion) to save the country’s banks.
Ireland’s Aa2 rating will “most likely” be cut by one level if a downgrade goes ahead, the ratings company said in a statement today. Moody’s, which cut the country’s rating in July, will finish a review within three months. Asian stocks pared declines from earlier today after Japan cut its benchmark interest rate and Australia unexpectedly kept its rate unchanged for a fifth month.
Japan’s central bank will create a 5 trillion yen ($60 billion) fund to buy government bonds and other assets, it said in a statement released today in Tokyo. It also lowered the benchmark interest rate to a range of zero percent to 0.1 percent from the previous 0.1 percent target.
Borrowing Costs
Reserve Bank of Australia Governor Glenn Stevens kept the overnight cash rate target at 4.5 percent, as forecast by only six of 25 economists surveyed by Bloomberg News, the RBA’s statement showed in Sydney today. Stevens added that higher borrowing costs will likely be needed “at some point.”
Tesco gained 1 percent to 434.6 pence, a third straight advance. The U.K.’s largest retailer reported a 9.1 percent gain in first-half earnings as sales improved in its international division and said its money-losing U.S. Fresh & Easy unit will be profitable in fiscal 2013.
So-called trading profit climbed to 1.69 billion pounds ($2.67 billion) in the six months ended Aug. 28, from 1.55 billion pounds a year earlier, the Cheshunt, England-based company said today. That beat the 1.61 billion-pound median estimate of seven analysts surveyed by Bloomberg News.
Washing Machines
Invensys added 1.1 percent to 301.2 pence as Citigroup raised its recommendation on the British maker of control panels for Whirlpool washing machines to “buy” from “hold.”
Homeserve Plc rallied 4.1 percent to 460 pence. The U.K- based emergency-repair service provider was rated as “outperform” in new coverage at Credit Suisse Group AG.
TUI Travel Plc jumped 3.2 percent to 223.7 pence. Europe’s largest tour operator said bookings for winter 2010/2011 have strengthened in all markets and that full-year results will meet forecasts.
Demand was particularly strong for winter-holiday packages like Thomson Couples, Chief Executive Officer Peter Long said in a statement today. The company continues to have a “prudent” outlook for 2011, he said.
E.ON slipped 0.8 percent as HSBC cut its rating on the utility to “underweight” from “neutral.” Separately, Santander downgraded the stock to “hold” from “buy.”
Inmarsat Plc tumbled 3.2 percent to 634 pence. Philip Falcone’s Harbinger Capital Partners said it sold 65 million shares in the company, about half its stake, at 630 pence a share.
Kazakhmys Plc, Kazakhstan’s biggest copper producer, lost 2.5 percent to 1,387 pence. Kazakhmys Chairman Vladimir Kim sold 58.9 million ordinary shares, representing about 11 percent of those in issue, the company said today in a regulatory statement.
To contact the reporter on this story: Julie Cruz in Frankfurt at jcruz6@bloomberg.net.
To contact the editor responsible for this story: David Merritt at dmerritt1@bloomberg.net.
http://jodnet.blogspot.com
Tesco rose 1 percent after reporting a gain in first-half earnings. Invensys Plc climbed 1.1 percent after Citigroup Inc. recommended the shares. E.ON AG dropped 0.8 percent as HSBC Holdings Plc and Banco Santander SA cut their recommendations on Germany’s largest utility.
The Stoxx Europe 600 Index dropped 0.1 percent to 257.57 at 8:50 a.m. in London, erasing an earlier gain of 0.1 percent. The gauge has rallied 11 percent since its low this year in May as investors speculated that the global economy will avoid another recession even as Europe’s governments slash spending and China moves to cool its growth. Still, concern that peripheral euro- area countries will struggle to repay their debt has left the gauge 5.3 percent below its April high for 2010.
“Overall the environment isn’t too bad for risky assets so don’t be frustrated by the short-term weakness,” said Markus Steinbeis, head of equity portfolio management at the Unterfoehring, Germany-based unit of Pioneer Investments KGmbH, which oversees about $221 billion globally. “We can expect another good earnings quarter with no major disappointments. It’s not surprising to see some consolidation but the market will rise after a short period of weakness.”
The measure declined for a sixth day yesterday, capping the longest stretch of losses since January 2009, as reports on U.S. home sales and factory orders failed to ease concern about the strength of the world’s largest economy. Futures on the Standard & Poor’s 500 Index expiring in December rose 0.2 percent today, while the MSCI Asia Pacific Index fell 0.2 percent.
Ireland Uncertainty
Moody’s said Ireland’s Aa2 rating may be cut after the government pledged as much as 50 billion euros ($68.6 billion) to save the country’s banks.
Ireland’s Aa2 rating will “most likely” be cut by one level if a downgrade goes ahead, the ratings company said in a statement today. Moody’s, which cut the country’s rating in July, will finish a review within three months. Asian stocks pared declines from earlier today after Japan cut its benchmark interest rate and Australia unexpectedly kept its rate unchanged for a fifth month.
Japan’s central bank will create a 5 trillion yen ($60 billion) fund to buy government bonds and other assets, it said in a statement released today in Tokyo. It also lowered the benchmark interest rate to a range of zero percent to 0.1 percent from the previous 0.1 percent target.
Borrowing Costs
Reserve Bank of Australia Governor Glenn Stevens kept the overnight cash rate target at 4.5 percent, as forecast by only six of 25 economists surveyed by Bloomberg News, the RBA’s statement showed in Sydney today. Stevens added that higher borrowing costs will likely be needed “at some point.”
Tesco gained 1 percent to 434.6 pence, a third straight advance. The U.K.’s largest retailer reported a 9.1 percent gain in first-half earnings as sales improved in its international division and said its money-losing U.S. Fresh & Easy unit will be profitable in fiscal 2013.
So-called trading profit climbed to 1.69 billion pounds ($2.67 billion) in the six months ended Aug. 28, from 1.55 billion pounds a year earlier, the Cheshunt, England-based company said today. That beat the 1.61 billion-pound median estimate of seven analysts surveyed by Bloomberg News.
Washing Machines
Invensys added 1.1 percent to 301.2 pence as Citigroup raised its recommendation on the British maker of control panels for Whirlpool washing machines to “buy” from “hold.”
Homeserve Plc rallied 4.1 percent to 460 pence. The U.K- based emergency-repair service provider was rated as “outperform” in new coverage at Credit Suisse Group AG.
TUI Travel Plc jumped 3.2 percent to 223.7 pence. Europe’s largest tour operator said bookings for winter 2010/2011 have strengthened in all markets and that full-year results will meet forecasts.
Demand was particularly strong for winter-holiday packages like Thomson Couples, Chief Executive Officer Peter Long said in a statement today. The company continues to have a “prudent” outlook for 2011, he said.
E.ON slipped 0.8 percent as HSBC cut its rating on the utility to “underweight” from “neutral.” Separately, Santander downgraded the stock to “hold” from “buy.”
Inmarsat Plc tumbled 3.2 percent to 634 pence. Philip Falcone’s Harbinger Capital Partners said it sold 65 million shares in the company, about half its stake, at 630 pence a share.
Kazakhmys Plc, Kazakhstan’s biggest copper producer, lost 2.5 percent to 1,387 pence. Kazakhmys Chairman Vladimir Kim sold 58.9 million ordinary shares, representing about 11 percent of those in issue, the company said today in a regulatory statement.
To contact the reporter on this story: Julie Cruz in Frankfurt at jcruz6@bloomberg.net.
To contact the editor responsible for this story: David Merritt at dmerritt1@bloomberg.net.
http://jodnet.blogspot.com
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