21/08/07 FTSE 100 6078.7, +14.5 Dow 13121.3, +42.3 FTSE 250 10703.8, +17.6 Nasdaq 2508.59, +3.56 FTSE All Share 3136.04, +7.07 S&P 500 1445.55, -0.4 Nikkei 15901.3, +168.9 Hang Seng 22179, +583.3 Oil (Brent) $68.80 Gold $666.50 Base Rate 5.75% 10 Yr Gilt 5.025% £/$ 1.977 Euro/Gbp 0.6811 Market report  US markets staged a late rally yesterday, leaving the Dow and the Nasdaq in positive territory for the third day in a row. All three indexes seesawed throughout a session that saw the Dow almost 100 points lower at lunchtime, but over 100 points higher by 3:30pm. The earlier sell off was sparked by further concerns in the credit and mortgage markets and caused a rally in the Treasury market. But the afternoon saw some of these worries recede as investors looked towards a potential rate cut to keep the economy growing. The Dow Jones rose 42.3 points to end at 13,121.3, the S&P 500 slipped 0.4 points lower to 1,445.55. The Nasdaq advanced 3.56 points to close at 2,508.59. Thornburg Mortgage set the negative mood for the morning after reporting that it had sold over 35% of its assets and reduced its borrowing to lower its risk. Chief Operating Officer Larry Goldstone also said in a statement that there was a crisis in investor confidence in the mortgage sector. Shares in the company dropped 10.2% to $13.50. Countrywide Financial reversed much of Fridays gains after a downgrade from Keefe, Bruyette & Woods Inc. The Wall Street journal also reported that the company has started laying off employees in a bid to cut costs. Shares finished 7.5% lower at $19.81. A number of Dow stocks finished off in positive territory as investors eyed the prospect of lower interest rates. Caterpillar climbed 1.95% to $74.05, Honeywell gained 2.5% to $55.82 and Alcoa added 3.1% to $34.32. US light crude oil fell $0.86 to settle at $71.12 a barrel, amid signs that Hurricane Dean is unlikely to disrupt refining centres in the Gulf of Mexico. COMEX gold slipped $0.30 to $666.50 an ounce. Treasury prices finished higher, lowering the yield on the 10 year note to 4.63%. The Nikkei rose 168.9 points to close at 15,901.3 this morning. Companies with a large exposure to the US climbed on continued speculation that the worst of the turmoil related to subprime mortgage losses is over for global equity markets. The Bank of Japan helped the market further, adding another 800 billion yen to the money market. The Hang Seng is 583.3 points higher at 22,179. The market was boosted by news that China said it will let some individual investors buy the city's securities. Hong Kong Exchanges & Clearing, which manages the city's stock market, surged on expectations trading volumes will increase. China Life Insurance gained on speculation investors will favour the company's Hong Kong listed 'H Shares' over its more expensive mainland stock. The FTSE 100 Index finished moderately higher after an unconvincing session for world markets yesterday. Mining stocks ensured that the London market built on Friday's strong session - but with the DJIA close to its opening mark, investors were in no mood for widespread buying. As a result, an early increase of 99 points faded to leave the Footsie 14.5 points higher at 6078.7 by the close. Mining stocks filled a number of the slots on the Footsie risers' board, buoyed by strengthening metal prices. Risers included Kazakhmys after a gain of 45p to 1170p, while BHP Billiton added 51p to 1275p. The biggest gain of the session came from nuclear power firm British Energy after an upgrade by Goldman Sachs. In light of first-quarter results and the recent decline in the company's share price, the investment bank said BE shares had a 28% potential upside to its newly revised three month target of 536p. The stock jumped 19.75p to 451.25p. Elsewhere in the energy sector, oil giant BP fell 2.5p to 538.5p and Royal Dutch Shell dipped 1p to 1838p after it became apparent that Hurricane Dean would not disrupt production and refining operations in the Gulf of Mexico. Northern Rock also recovered after last week's credit turmoil for its shares, although the gain was limited to 6.5p at 716p by the close. HSBC was in the red as it revealed it was in talks to buy a majority stake in Korea Exchange Bank from Lone Star Funds. Shares slipped 8p to 894p. Other banking stocks were uncertain, with Royal Bank of Scotland ahead 1.5p at 577p but Barclays off 5p at 634.5p and Asian-facing bank Standard Chartered losing 39p to 1521p. Sainsbury's shares remained under pressure amid concern that tight credit markets may hamper takeover prospects. The stock was 10p lower at 510.5p, well below the proposed 600p offer price from Delta Two. Moving in the opposite direction, Morrisons lifted more than 2%, or 5.5p to 262.5p after reports at the weekend said chairman Sir Ken Morrison was reviewing his 10% stake in company. Meanwhile, shares in property firms were under pressure, with British Land down 43p at 1198p, Segro off 14p at 513p and Land Securities down 33p at 1728p. House builder Persimmon fell 23p to 1250p as it prepared for the release of half-year results tomorrow. Economic report  No economic data to report The details published in this e-mail are intended for information only and should not be construed as advice under the Financial Services and Markets Act 2000. Aventus Capital Management will not accept responsibility for any actions taken (or not taken) on the basis of information published in this e-mail. 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