Euro markets erase early losses

European markets erase early losses and head towards a positive start to the week as investors take positions ahead of what could be a busy week. All eyes will be on the FOMC meeting minutes and a speech by Federal Reserve chairman Ben Bernanke on Wednesday as investors try guess when the Fed will taper their bond buying program. Comments from US Federal Reserve chairwomen-in-waiting Janet Yellen suggested the Fed would not taper anytime soon with many believing March 2014 would be a likely candidate. 

Signs of an ambitious economic reform in China also added to positivity helping Asian stocks extend a two-week high. China vowed to carry out the broadest expansion of economic freedoms since as least the 1990’s including the relaxation of Chinas one-child policy. 

Gold futures was in decline on Monday, struggling from its range-bound finish in the prior session as traders continue to mull when the Federal Reserve will start tapering its bond buying program.

Risers:

 

Aberdeen Asset Management

In what has been a tightly range-bound day for the FTSE 100, Aberdeen Asset Management stands out as a particularly strong performer after striking a deal worth up to £660 million with Lloyds Banking Group making them Europe's biggest independent fund manager. The takeover of Scottish Widows Investment Partnership will result in Lloyds holding a 9.9 percent stake in Aberdeen while the two companies will also form a long-term strategic partnership. Aberdeen manages around £200 billion of funds and is set to add another £136 billion once the acquisition of Edinburgh-based SWIP completes early next year.

 

Vedanta Resources

Analysts at Deutsche Bank decreased their price objective on shares of Vedanta Resources from 1,050p to 1,020p in a research report issued to clients and investors today. The firm currently has a “hold” rating on the stock. Deutsche Bank’s target price would suggest a potential upside of 6.75% from the company’s current price.

 

Kentz Corporation

Kentz Corporation investors have reason to celebrate this morning after the global engineering specialist issued encouraging forward growth guidance. The firm have moved to confirm that they expect double-digit earnings growth in 2013 on the back of new contracts and strong order intake.

 

Mediwatch

Trading higher than any other AIM listed share, medical technologies business Mediwatch is to be acquired by Canadian firm Laborie after agreeing terms on an £8.5m deal. The deal follows an initial approach from Laborie a month ago.

 

Ultrasis

Ultrasis announces that its recently-acquired screening and wellbeing subsidiary, Screenetics UK Limited, has won three new contracts with customers spanning the public and private sectors. The value of the contracts is an estimated £2 million per annum.

 

Fallers:

 

Petrofac

Weighing on Britain’s top equity gauge, Energy services provider Petrofac saw shares plummet this morning after it said that it expected new income in 2014 to see "flat to modest growth year-on-year". It blamed delays in its Upper Zakum project in Abu Dhabi and the Berantai project in Malaysia.

 

Aveva

Shares in the engineering data and design IT technology developer are trading lower despite seeing pre-tax profits increase 5.8% in its first half, as the company's engineering and design systems division sales offset slower-than-expected growth in its enterprise solutions division. This is owing to slower than expected growth in its enterprise solutions division, which will lead to lower-than-expected revenue for that division for the full financial year.

 

Provexis

Provexis share price has been decimated this morning after directors admitted that they were lost for when trying to attribute recent share price gains to something concrete. The stock had risen from 0.75p in October to 2.085p on Friday before today’s sell-off.

 

Fastjet

Despite carrying a record 33,778 passengers in October achieving an average load factor of 70%, shares in Fastjet have suffered a setback. Following the recent introduction of fastjet's first international route linking Dar es Salaam and Johannesburg, cargo revenues are also expected to grow significantly. The group said punctuality remained excellent with 94% of flights operating on time.