European markets rebounded this morning

European markets rebounded this morning after the hysteria generated by the European Economic Forecasts yesterday and rumours of rate cuts died down. Positive European data this morning will have helped bolster the rebound with Spanish PMI, European Final Services PMI and Germany Factory orders all coming in better than forecast. The UK also added healthy Manufacturing production figures to the mix growing 1.2% as opposed to a loss of 1.2% previously. Despite these figures a lingering concern remains about the strength of the Eurozone’s recovery and continued speculation on rate cuts tomorrow are likely to cause volatility towards the end of today and tomorrow morning.

US futures are on the rise pre-open; this is being attributed to further speculation over the Fed’s tapering policy ahead of non-farm job data on Friday. With tapering seen as unlikely following recent Fed comments that more evidence is necessary before they consider tapering, investors will be keenly following economic data so expect overreactions.

Risers:

 

Associated British Foods

Leading the FTSE 100 higher, investors in Associated British Foods have much to cheer after Primark enjoyed a sales surge boosting profits. Described as “remarkable”, Primark results showed operating profits rose 44 percent to £514M whilst sales jumped 22 percent ahead to £4.3Bn. This is in part owing to the opening of new stores. The retailer will open its first store in France in December, one of 13 openings it is planning in time for Christmas, including five in Spain.

 

Easyjet

The Luton-based airline gave a lift to British Airways owner International Airlines Group and tour giant TUI Travel, as it said passenger numbers increased 5.4% in October. Helping to lift the FTSE 100, Easyjet's growth to 5.5 million passengers in October was coupled with fuller planes, and helped the sector recover from Ryanair's recent profits warning. Additionally, analysts at AlphaValue have upgraded their rating on the share to “reduce”.

 

Moneysupermarket.com

Topping the list of FTSE 350 risers, the UK based price comparison website has confirmed that Q3 trading was in line with forecasts. Group revenues are expected to be up 5% from last year whilst the firm has said it had a very strong start to the fourth quarter with group revenues more than 25% ahead of the same period last year, driven by energy switching since mid-October. Consumers, it said, have been seeking better deals in the face of rapidly hiked energy bills.

 

Meggitt

Meggitt was upgraded by investment analysts at Seymour Pierce to a “buy” rating in a note issued to investors today. The firm currently has a 590p price target on the stock, up from their previous price target of 520p. Seymour Pierce’s target price suggests a potential upside of 19.55% from the company’s current price.

 

Craven House Capital

Rising the most amongst AIM listed stocks, Craven House Capital has acquired through EmVest Asset Management, a 49% interest in three businesses focused on food and agriculture in sub-Saharan Africa. Simultaneously, the shareholders of EmVest have agreed to subscribe for 94,322,598 new ordinary shares in the company for 1.25p per share, amounting to an aggregate subscription of £1,177,000.

 

Fallers:

 

Experian

Weighing heavily on the FTSE 100, Experian said it would suspend a $500 million share buy-back program after agreeing to buy a U.S. healthcare data firm for $850 million. Experian had also spent $322 million on buying back shares from investors at the end of September, having committed in May to buying back half a billion dollars’ worth in the next 12 months. The company said it would stop returning money to shareholders via the buyback following its latest acquisition.

 

Mondi

Packaging and paper group Mondi said that sales volumes in the third quarter were held back by planned maintenance shutdowns at some of its larger sites, though expectations for the full year remain unchanged. However, the company gave a cautious outlook, citing the ‘current low-growth environment’ and rising competition in some markets.

 

Centamin

Mining Group Centamin have seen their shares shed value after Q3 production fell.  The firm reported gold production of 84,757 ounces in Q3 to end-September, down 9% quarter-on-quarter. However, Operations are well placed to exceed full year 2013 guidance whilst remaining debt-free and un-hedged with cash

 

Lancashire Holdings

Lancashire Holdings Limited Wednesday reported a 67% decline in its third quarter profits, mainly because of European hail storms and floods. The 67% quarterly decline pulled down the insurer's pretax profit for the first nine months by 12% to $162.9M. The specialty insurer operating in Bermuda and London has moved to confirm that market conditions in 2014 look stable for its portfolio overall.

 

Strategic Natural Resources

In percentage terms, Strategic Natural Resources has lost the most value amongst any UK listed share. This comes after the firm said its Elitheni Coal (Pty) Ltd subsidiary has managed to get short-term funding from an existing shareholder, and is also in talks with other investors about long-term funding in return for a stake. It has ceased mining until it gets long-term funding, and when it restarts, plans to use cheaper drilling and blasting techniques.