(MENAFN- ProactiveInvestors) The Markets
Market opening: Markets are likely to open lower today. FTSE 100 futures were trading 10.50 points down at 7:00 am.
New York: Wall Street continued its uptrend after the Federal Reserve’s Beige Book indicated the US economy continues to expand. S&P500 advanced 0.4% to close at a record high of 2074.33.
Asia: The robust US close significantly influenced Asia. Nikkei extended growth for a fifth session gaining 0.9% as exporters’ shares rose in response to the weaker yen. Hang Seng was trading 1.6% higher at 7:00 am.
Continental Europe: Equities closed in the green expecting the European Central Bank (ECB) to provide indications on additional stimulus at its policy meeting on Thursday. Germany’s DAX and France’s CAC 40 improved 0.4% and 0.1% respectively.
Crude Oil: Yesterday the price of fell 0.9% whereas that of WTI rose 0.7%. The spread between the two varieties narrowed to US$2.5 per barrel.
UK small caps: The FTSE AIM All-Share index closed 0.08% higher yesterday at 711.50. To read our latest research click here.
Today’s news
Osborne announces cuts in property taxes unveils new taxes on multinationals
The Chancellor of the Exchequer George Osborne announced the system of stamp duty on home purchases would be changed from the current flat rate on the entire purchase price to slab rates above a series of thresholds. The changes which come into effect from midnight would benefit 98% of all home buyers he mentioned. Osborne also announced higher levies on multinational companies and abolished air passenger duty for children under 12.
Company News
International Greetings () – Speculative Buy
Yesterday International Greetings announced its interim results for the six months ended 30th September 2014. Sales stood at £111.9m near unchanged from sales in the same period last year. However gross profit margins dipped slightly to 18% from 19% due to changes in the geographic sales mix. Nevertheless profit before tax non-cash long term incentive plan charges and exceptional items rose 7.1% to £4.0m. Order book for FY2014/15 was in line with expectations the company mentioned.
Our view: International Greetings witnessed muted growth in the first half of the year. Yet we are encouraged by several factors including opening of a new facility in Wales production efficiencies achieved in Europe the successful integration of Enper and excellent response to new licensed products including creative play and gift packaging ranges of ‘Frozen’ from Disney. In fact given the rising customer interest and acceptance of International’s products International Greetings is well positioned to form a loyal customer base. We retain our Speculative Buy rating on the stock.
Economic News
Eurozone retail sales
Eurozone’s retail sales increased 0.4% m-o-m in October slightly lower than the 0.5% rise expected by consensus but much above the 1.2% fall witnessed in September. Retail sales for October were pulled up by a 0.7% rise in the sales of non-food products. On y-o-y basis retail sales improved 1.4% in October following an increase of 0.5% in September.
US MBA mortgage applications
US mortgage applications declined 7.3% in the week ended 28th November after edging down 4.3% in the prior week the Mortgage Bankers’ Association said yesterday. Refinance index dropped 13.4% while the gauge of loan requests for home purchases rose 2.5% over the week.
US ADP employment change
Jobs in the private sector increased 208000 in November after an upwardly revised reading of 233000 in October the ADP reported yesterday. The consensus estimate was 222000 for November.
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