09/03/10

FTSE 100	5606.72, +6.96	Dow	10552.52, -13.68
FTSE 250	9786.39, +11.67	Nasdaq	2332.21, +5.86
FTSE All Share	2864.47, +3.41	S&P 500	1138.50, -0.19
Nikkei	10567.65, -18.27	Hang Seng	21207.55, +10.68
Oil (Crude)	$81.87, +$0.37	Gold	$1124.60, -$10.90
Base Rate	0.5%	10 Yr Gilt	4.1%
£/$	1.499	Euro/Gbp	0.907

Markets

indices were mixed yesterday following news of more corporate deals, a stronger dollar and fall in commodity prices. The Dow Jones slipped 13.68 points to 10,552.52, the S&P 500 edged 0.19 points lower to 1,138.50, while the Nasdaq added 5.86 points to end at 2,332.21. In deal news, MetLife agreed to buy Alico - troubled insurer AIG’s American Life Insurance unit – in a $15.5 billion cash and stock deal. It is AIG’s second major sale in a week, as it looks to pay back over a $100 billion in bailout money it took during the financial crisis. In other deal news, Royal Dutch Shell and PetroChina have made a bid to buy Australia's Arrow Energy for $3 billion in cash and stock. Royal Dutch already owns a 10% stake in Arrow. Elsewhere, Cisco and Research in Motion helped the Nasdaq into positive territory after both stocks received upgrades.

The Nikkei fell 18.27 points to 10,567.65 this morning as investors chose to lock in profits following the index’s biggest two day rise in three months. The Hang Seng rose 10.68 points to 21,207.55, with upbeat corporate news countering a drop in oil and metal prices. China Life Insurance gained 3.4% after saying 2009 profit may have climbed more than 200%.

The FTSE 100 gained 6.96 points to close at 5,606.72 yesterday, a new 18 month high. Better than expected results from Petrofac offset declines among drugmakers with AstraZeneca pressured after its cancer drug failed in trials. This morning the index slips 5.01 points to 5,601.71. Data released overnight showed British house prices grew last month at their slowest pace since August after the amount of new property coming on to the market grew faster than the number of new buyers, the Royal Institution of Chartered Surveyors said. Meanwhile, British retail sales recovered last month from January's snow-related slide, helped by strong sales of clothing and footwear, a survey by the British Retail Consortium found. Investors will also eye January British trade numbers, due at 0930 GMT.

Economics

UK RICS house prices (Feb) 00:01 GMT

Analysts expect the RICS balance to hold steady at 32% in February and the detail to suggest that January’s fall in approvals was weather related.

UK Trade balance (Jan) 09:30 GMT

The trade balance did not narrow as much as analysts had expected in the second half of last year, which can, at least in part, be attributed to the car scrappage scheme that boosted imports much more than it boosted exports. However, with car scrappage schemes being phased out analysts expect the trade balance to narrow on the back of weaker sterling.

US IBD/TIPP economic optimism (Mar) 15:00 GMT/ 10:00 EST

February’s IBD/TIPP index fell to 46.8, with declines of around 3pts for both the economic outlook and federal policies components, while the personal finances index was close to unchanged. Analysts look for a small increase to 48 in March.

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