Market Report

17:06 - The FTSE 100 refused to burst into life on Wednesday as weak global economic data dampened enthusiasm.

London’s blue chip index finished the session 11.65 lower at 5916.55 with packaging giant Rexam (REX) leading the winners’ list, up 7%, while Vedanta (VED) was down more than 5%.

On AIM, Savile Group (SAVG) was 42% higher, while the bottom slot was taken by Lombard Risk Management (LRM), down 16%.

Interactive Investor users were trading Gulf Keystone (GKP) heavily throughout the day, buying almost five times more stock than they sold. Even so, it was the second biggest faller on AIM by the end of the session.

Tesco (TSCO) was back in favour with buyers, while Ophir Energy (OPHR) was widely sold ahead of its update to investors next month.

"Figures from China, Europe and the US were almost all below expectations, although not significantly so, meaning that bulls have found it hard to build a powerful case for pushing markets higher," commented Will Hedden, sales trader at IG Index.

He added: "The fall in eurozone PMIs was particularly worrying, since it raises the uncomfortable possibility that the fourth-quarter contraction in eurozone GDP was not an isolated event."

At a glance

Commodities

Gold: $1,756.69 ()

WTI crude oil: $106.23 ()

Currencies

GBP/USD: 1.5673 ()

GBP/EUR: 1.1835 ()

EUR/USD: 1.3250 ()

All changes from 09:00 GMT

16:50 - US stocks slipped on Wednesday after a report on the nation’s housing market signaled increased demand but still came in under expectations.

The Dow Jones was 44 points lower 12921, while the S&P lost two points to 1359 and the Nasdaq lost 15 points to 2933.

16:40 - Healthcare group Hutchison China MediTech (HCM), based in China, announces the commencement of the first oral anti-cancer therapy, Volitinib.

In December 2011 AstraZeneca PLC and HMP declared that they had entered into an international licensing, co-development and commercialisation agreement for Volitinib. Phase 1 of the study has already been authorised by the Bellberry Human Research Ethics Committee in Australia.

Initial purposes of the phase 1 study of Volitinib “are to evaluate its safety and tolerability in patients with advanced cancer and to determine its maximum tolerated dose.” This could lead to the use of Volitinib against other tumours.

16:20 - Commodity companies set the tone on Wednesday as announcements came thick and fast from the likes of Beacon Hill and Kefi Minerals.

Read our round-up of news from eight key players.

16:00 - Shares in Millennium and Copthorne (MLC) edged upwards as it declared a special dividend of 4p per share.

In its full-year results, the company reported a pre-tax profit of £150.7 milli0n versus consensus forecasts of £151.7 million. Net debt came in at £100.5 million, compared to consensus estimates of £72.9 million, with the company commenting that the debt levels would rise going forwards as it invests in assets.

"Owned and leased upscale hotels rarely generate an economic profit, in our view, and given management reticence to adopt a less asset intensive model, we struggle to see how these below WACC returns can be materially improved over the medium-term," said Simon French, analyst at Panmure Gordon.

He added that the stock trading on a 2012 price to earnings ratio of 15.5 times was  "difficult to justify" and reiterated his ‘sell’ rating.

15:40 -Shares in Hays (HAS) climbed 8% despite the company announcing a 55% cut in its dividend as it published its interim results for the six months ended December 2011.

"We think the dividend cut was reasonably well-flagged, with the full year consensus discounting a 20% cut, and necessary given free cash flow forecasts," said James Gilbert, analyst at Collins Stewart. However, he warned that debate was now likely to shift away from the dividend to the UK, which made a £3.1 million loss.

"Although encouraged by comments that current trading has remained relatively robust, the investment case is unchanged. We continue to look for evidence of a more coherent strategy in the UK, a pickup in the Australian job market or a more attractive entry point," Gilbert added. He has a ‘hold’ recommendation on the stock.

15:20 - Sirius Minerals (SXX) has announced the intention to appoint Jason Murray as finance director and chief financial officer.

Jason Henry Murray, who is expected to start the role in three months, 43, has been Bank of America Merrill Lynch ‘s head of capital markets in Australia for the last five years.

"Jason brings with him outstanding credentials in fundraising across many sectors and most importantly, the mining sector.  In addition Jason's background in UK corporate taxation, corporate governance and building high performance teams will add greatly to the depth of the management team of Sirius," commented chairman Russell Scrimshaw.

As part of the appointment, Murray has been granted two tranches of options – 10 million options that can be exercised at 30p pence per share lapsing on 1 July 2015, and a further 10 million options with an exercise price of 45p which lapse on 1 July 2017.

15:05 - The FTSE 100 continued to linger in the red, slipping 13 points to 5915.

Rexam (REX) continued its trek upwards, climbing almost 6%. Vedanta Resources (VED) fell almost 4.5%.

On the AIM front, Savile Group (SVG) gave up some of its gains, while Marechale Capital (MAC) fell 20%.

At a glance...

Commodities

Gold: $1,751.84 ()

WTI crude oil: $105.96 ()

Currencies

GBP/USD: 1.5657 ()

GBP/EUR: 1.1839 ()

EUR/USD: 1.3221 ()

All changes from 09:00 GMT

14:58 - US markets dipped into the red at the open on Wednesday ahead of a report on the US housing market.

The Dow and the Nasdaq slipped three points each to 12964 and 2945 respectively.

The S&P edged one point lower to 1361.

14:45 -  Shares in packaging group Rexam (REX) were boosted as it revealed full-year profits were in line with expectations and confirmed a 20% increase in dividend to 14.4p.

Underlying pre-tax profit increased 15%, with a steady free cash flow of £277 million, reducing net debt to £1.3 billion.

Underlying operating profit in the Beverage Can business increased by 13%, surpassing expectations. However, chief executive, Graham Chipchase, said “We do not anticipate any turnaround in the performance of plastic packaging in the near term.”

Despite flat sales of plastic packaging, analysts at Seymour Pierce rate Rexam a ‘buy’ and forecast continued robust performance into 2012.

14:15 - The Confederation of British Industry has called on Chancellor George Osborne to introduce several tax cuts in his budget next month.

The group’s submission outlines a £500 million boost to business via fiscal changes and urges the Chancellor to boost growth and investment.

14:00 - AIM-listed juice company Asian Citrus (ACHL) issued a statement correcting five factual inaccuracies in an article which appears in Next magazine on 22 February.

“The board would like to emphasize that the contents of the article are not factually accurate and true,” it said in a statement, which included corrections.

13:30 - Petropavlovsk (POG) confirmed that its 65.6% owned subsidiary, IRC, has made a maiden full year profit of $1 million.

Additionally, production targets at the Kuranakh mine were exceeded, generating a segmental profit of $20 million.

"IRC's position as a developer as well as producer in a unique geographical location makes us confident that the company will unlock value for our shareholders in the years to come," said chairman Peter Hambro.

13:10 - Horizonte Minerals (HZM) confirmed its Araguaia mineral resource estimate as it published its full-year results.

The company revealed that the mineral resource at its flagship Araguaia project now comprised of 100.2 million tonnes, grading an average of 1.29% nickel, up from the 76.6 million tonnes grading 1.35% nickel announced in March 2011.

"Araguaia is a truly quality asset for Horizonte and one that we look forward to progressing up the development curve, accruing significant value for shareholders," said the company.

For the full story, read: Horizonte Minerals confirms Araguaia resource estimate.

12:45 - Shares in Logica (LOG) edged upwards as it confirmed that full year operating margin for 2012 would be above 6.5%, despite the "tough market conditions".

"We expect our Benelux business to return to profit in 2012, our Swedish business to deliver an improved margin and our outsourcing business to be strongly competitive," said chief executive Andy Green.

The comments came as the company warned that 2011 has been a "more difficult year than … expected", with a "strong" £4.6 billion order book failing to offset the restructuring and contract charges.

12:25 - St James's Place (STJ) has reported a 12% increase in the 2011 pre-tax profits to £371.5 million.

Looking ahead, the company said that sales in the first quarter of 2012 were running at similar levels to that achieved in the fourth quarter of 2011.

"We view [this] as a note of caution, but we expect sales to improve as 2012 progresses and comparisons get easier," reassured Barrie Cornes, analyst at Panmure Gordon. "We believe that the 60% stake owned by Lloyds continues to act as an overhang to the share price. Once this situation is resolved, which we believe could be as early as the spring or summer 2012, we think the share price will rebound very rapidly," he added, reiterating his ‘buy’ recommendation.

12:05 - Ongoing concerns about Greece, along with weak economic figures from China and the eurozone, continued to weigh on the FTSE 100.

London’s leading share index dipped just shy of the 5900 level, dropping 29 points.

"While markets have not turned resolutely negative, the race against time that Athens now faces, with just days to finalise a set of reforms, means that investors remain sceptical that Tuesday's deal really does solve the problem," said Chris Beauchamp, market analyst at IG Index, adding that the disappointing eurozone PMI figures suggested that the debt crisis continues to hurt confidence among businesses.

Vedanta Resources (VED) fell almost 5% following its positive move on Tuesday. Rexam (REX) climbed up more than 3%.  

On the AIM front, Savile Group (SVG) continued to march ahead, up 47%, while shares in Marechale Capital (MAC) lost a fifth of their value.

On the Interactive Investor user site, Gulf Keystone Petroleum (GKP) was the most actively-traded stock.

Looking ahead, Beauchamp is expecting the Dow to open two points lower.

At a glance...

Commodities

Gold: $1,753.42 ()

WTI crude oil: $105.90 ()

Currencies

GBP/USD: 1.5693 ()

GBP/EUR: 1.1875 ()

EUR/USD: 1.3216 ()

All changes from 09:00 GMT

11:40 - Kurdistan-focused oil company Afren (AFR) recorded a 25.8% rise in post-tax profit to $66.2 million in the ten months to 31 October 2011.

The increase was driven by a 35.2% rise in revenues to $404 million.
Afren said it had released the data in connection with a senior secured notes offer, ahead of the planned publication of its full-year results which will include data from an of its recently acquired assets onshore Nigeria and in Kurdistan.

11:20 - Old Mutual (OML) has revealed that a preliminary non-binding offer has been accepted by Ecobank Transnational Incorporated (ETI) for the acquisition of Oceanic Life, which was acquired by ETI in October 2011 as part of the Oceanic Bank Group.

Old Mutual and ETI are currently negotiating and finalising the relevant legal agreements including the relevant regulatory approvals from both a South African and Nigerian perspective.

Oceanic Life is a Nigerian life assurance company with a market share of 1.8% and a Net Asset Value of $16 million.

The acquisition would form part of Old Mutual's stated strategy of expanding its presence in sub-Saharan Africa.

11:00 - FTSE 250 software business Micro Focus International (MCRO) has said that operations in the three months ended 31 January are in line with “management’s expectations”.

As at 31 January, the company had $156 million of net debt on its balance sheet, “demonstrating further good operational cash generation”.

Management assured investors that for the six months to 30 April, there would similar levels of revenues and earnings before interest, tax, depreciation and amortisation (EBITDA) to that achieved in the first half.

Analysts at Collins Stewart retained a ‘buy’ stance on the stock, dubbing it ‘Reassuringly dull.”

10:40 -The minutes of the February meeting of the Bank of England’s Monetary Policy Committee (MPC) suggested that the door remains open for more quantitative easing (QE) should the economy struggle for sustained growth over the coming months.

Not one of the nine MPC members favoured less than £50 billion more QE in February, while two of them wanted a £75 billion increase.

Howard Archer, chief UK and European economist at IHS Global Insight noted that there were "clearly" differing opinions within the MPC over the balance of the upside and downside risks to the central forecast that consumer price inflation will be only just below its 2% target rate in two year time.

Archer believes that additional QE is more likely than not, forecasting £25 billion more QE in May and another £25 billion in August. He also predicts that interest rates will not rise until "at least late-2013 and could very well stay put at 0.50% until 2014".

10:15 - 2012 has been a good year for housebuilders so far, with Barratt Developments (BDEV) boasting of a "strong start to 2012", while Galliford Tr (GFRD)y has been "encouraged by the strength of the market in the first seven weeks of the year".

However, building materials supplier Travis Perkins (TPK) warned of a "market softening" this year.

For the full story, read: Housebuilders show investors they are made of strong stuff.

09:55 - British energy giant Centrica (CNA) has agreed to buy Total E&P UK’s non-operated portfolio of oil and gas assets for a total of £246 million.

The portfolio, located in the Central North Sea, comprises of 7 producing fields, of which Centrica has a share of approximately 22 million barrels of oil equivalent of 2p reserves. This purchase is anticipated to provide instant cash flow and confirms a growth in the company’s oil and gas production.

Mark Hanafin, managing director of Centrica Energy said the purchase highlights Centrica’s "commitment to invest where we see attractive opportunities, securing future energy supplies for the UK."

09:30 - Shares in East African-focused oil and gas company Cove Energy (COV) were flying on Wednesday after Royal Dutch Shell (RDSB) said it had launched a bid to buy the firm.

Shell is offering 195p per Cove share in a deal that values the AIM-listed company at around £992.4 million.

For more read: Shell launches bid for Cove Energy.

09:00 – The FTSE 100 edged downwards as investors became concerned that the Greek rescue deal was, by no means, the end of the saga and as PMI numbers from across the Eurozone disappointed.

The blue-chip index lost 10 points to stand at 5918.

"Continued concern over Greece's ability to pay the bills will no doubt give the bears  more confidence to push markets lower today," commented Mike McCudden, head of derivatives at Interactive Investor.

However, volatility seemed to be abating, with the FTSE 100 volatility index is down more than 4% this week.

Rexam (REX) was the top performer on the board, up more than 4%, as it presented its latest trading results. Reckitt Beckiser (RB.) fell more than 2% as it traded ex-dividend. In fact, ex-dividend factors are expected to knock 3.5 points off the FTSE 100.

On the AIM front, Savile Group (SAVG) soared up 46%, while IPSO Ventures (IPS) fell 16%.

In terms of economic data, the minutes from the February Bank of England MPC meeting are scheduled for release at 0930 GMT.

US markets

Stocks across the Pond finished mixed on Tuesday after European officials agreed to another round of aid for Greece.

The Dow touched the above the 13000 mark for the first time since 2008, before closing at 12966, up 16 points. The S&P climbed up one point to 1362.

However, the Nasdaq edged three points downwards to 2949.

Looking ahead, US January existing home sales data are due at 1500 GMT

At a glance...

Asian markets

Nikkei 225: 9554 ( 91)

Hang Seng: 21549 ( 71)

Shanghai Composite: 2403 ( 22)

Commodities

Gold: $1,755.78

WTI crude oil: $106.30

Currencies

GBP/USD: 1.5804

GBP/EUR: 1.1924

EUR/USD: 1.3258

08:00 - The FTSE 100 opens at 5928.20