UK Market Talk Roundup: Broker Comments

Broker comments in the UK today. Compiled by Dow Jones Newswires Markets Desk, markets.eu@dowjones.com 

        1025 GMT German chemical association VCI raises its revenue growth outlook for 2015, citing a weaker euro as the main driver. The industry now forecasts an increase of 0.5% in revenue after previous expectations of a decline of 0.5%. But the industry's 1H figures are a mixed bag. While production picked up in 1H 2015, revenue growth has been sluggish. "The upward trend is recognizable, but it is feeble," says Marijn Dekkers, VCI president. "There's a lack of sustainable impetus from global economy." Sales grew 0.5% to EUR96.5 billion. Production is still seen rising 1.5% in 2015. The VCI expects to continue benefiting from a weaker euro and cheap oil. Prices for chemicals are however still seen about 2% below the prior year.(heide.oberhauser@wsj.com)
        0957 GMT N+1 Singer downgrades its pretax profit fiscal 2015 estimate for Restore by 5% to GBP15.8M after technical problems on a major contract resulted in cost overruns. Fiscal 2016 and 2017 forecasts are unchanged, assuming that the issues do not recur next year. The broker maintains its 330p target price and buy rating. Shares decline 3.9% to 258p. (jana.simmons@wsj.com)
        0952 GMT European oil exploration and production companies appear to be trading at significant discounts to their net asset values reflecting the uncertain direction of oil prices and balance sheets and the impact on projects that don't yet have final investment decision, says Credit Suisse in a note. This has created an opportunity to buy into Tullow Oil PLC and Africa Oil, which are upgraded to outperform from neutral, as key risks have already been priced in while projects still work at lower oil prices, the note adds. Tullow's target price is raised to 440p per share from 435p. Africa Oil to SEK21 from SEK20. (Selina.williams@wsj.com)
        0730 GMT London's FTSE 100 is 0.8% lower at 6712, following some weaker corporate earnings reports. ARM Holdings is one of the biggest decliners, down 3.9%. The computer-chip designer reported quarterly revenue rose 22% on the same quarter last year, missing forecasts. After the results, Citigroup analyst Amit Harchandani said concerns around smartphone sales would likely present a hurdle in the second half of the year. Mining stocks are also comfortably in the red, with commodity prices slipping again. At the other end of the index European budget airline easyJet PLC is the biggest riser early in the session. The group reported a 1% drop in third quarter sales but also said full-year profit would rise by up to 14%. (josie.cox@wsj.com)
        0656 GMT [Dow Jones]--Nordic markets are seen opening slightly lower Wednesday, with IG calling the OMXS30 down 0.4% at around 1630. "The relief rally following the Greek deal ran out of steam yesterday after S&P500 hit the previous cycle highs from May and June on Tuesday," says Danske Bank. "It seems to have triggered some profit taking after a good run and the decline got extra fuel in afterhours trade as Apple's shipments and sales forecast disappointed." Nasdaq futures are taking a hit in Asian trading and Asian markets are also down across the board, it adds. It's another quiet day on the data front with Bank of England minutes and U.S. existing home sales later. Earnings from Telenor, SSAB and Danske Bank are in regional focus. OMXS30 closed at 1636.42, OMXN40 at 1639.88 and OBX at 586.62. (dominic.chopping@wsj.com)
        ("Europe to Open Lower After U.S. Weakness -- Market Talk," at 0626 GMT, misstated that the MPC minutes would show a 9-0 vote for changes to the bank rate. They are expected to show a 9-0 vote in favor of no changes. The correct version follows:)
        0626 GMT [Dow Jones]--European stock markets are expected to open lower Wednesday after U.S. equity heavyweights IBM, Apple and United Technologies all released disappointing results, dragging the main U.S. indexes down. Elsewhere, the Bank of England's MPC minutes are likely to show a 9-0 vote for no changes to the bank rate with the market alert for further signs of increased hawkishness given the recent warning from Governor Mark Carney that a rate hike may be necessary around year-end. The FTSE 100 is seen opening 22 points lower, the DAX down 39 and the CAC 12 points in the red. (nick.cawley@wsj.com)
        0630 GMT [Dow Jones]--France's CAC-40 is expected to open 0.4% lower at 5084 Wednesday as disappointing results from Microsoft and Apple weigh on global stock indexes, says a Paris-based trader. There's little corporate news in France to drive sentiment as earnings season for French blue chips doesn't start in earnest until next week. But Bouygues will be eyed at the open after Jefferies upgrades the stock to buy from hold. French business sentiment at 0645 GMT will also be noted. Later, Italian industrial turnover and orders are due at 0800 GMT and U.S. existing homes sales at 1400 GMT. (william.horobin@wsj.com)
        0629 GMT [Dow Jones]--Germany's DAX is expected to open some 0.6% lower at 11,537 Wednesday, according to Deutsche Bank, extending the previous day's losses after Wall Street closed lower on the back of some weak corporate earnings data. However, the upgrade by Standard & Poor's of Greece's credit rating Tuesday evening may provide a minor sentiment boost. None of the German blue chips have scheduled earnings release for the day, nor is any German macroeconomic data due. In the absence of any scheduled domestic drivers, investors might want to look at Portugal's government bond auction, one of the handful of eurozone debt sales these days, for proof that the periphery has shielded itself from potential Greek contagion. (emese.bartha@wsj.com; @EmeseBartha)
        0626 GMT [Dow Jones]--European stock markets are expected to open lower Wednesday after U.S. equity heavyweights IBM, Apple and United Technologies all released disappointing results, dragging the main U.S. indexes down. Elsewhere, the Bank of England's MPC minutes are likely to show a 9-0 vote in favor of no changes to the bank rate with the market alert for further signs of increased hawkishness given the recent warning from Governor Mark Carney that a rate hike may be necessary around year-end. The FTSE 100 is seen opening 22 points lower, the DAX down 39 and the CAC 12 points in the red. (nick.cawley@wsj.com)
        Corrections and Amplifications
        This item was corrected at 06:55 GMT. The original misstated that the MPC minutes would show a 9-0 vote for changes to the bank rate. They are expected to show a 9-0 vote in favor of no changes.
        (END) Dow Jones Newswires

        July 22, 2015 06:25 ET (10:25 GMT)

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