22/04/09

FTSE 100	3987.46, -3.4	Dow	7969.56, +127.83
FTSE 250	6987.25, -29.43	Nasdaq	1643.85, +35.64
FTSE All Share	2038.38, -2.86	S&P 500	850.08, +17.69
Nikkei	8727.30, +15.97	Hang Seng	14875.95, -409.94
Oil (Crude)	$43.51	Gold	$882.70
Base Rate	0.5%	10 Yr Gilt	3.39%
£/$	1.457	Euro/Gbp	0.886

Markets

stocks rebounded from Monday’s losses following positive comments from Treasury Secretary Timothy Geithner and a handful of pleasing results from blue chip companies. Geithner was speaking before a Congressional bailout oversight committee when he indicated that most banks have sufficient reserves to protect against possible losses. He also said that most banks have enough capital to keep lending, although bad debts are slowing a recovery.

The Dow Jones jumped 127.83 points to close at 7,969.56 while the S&P 500 added 17.69 points to end at 850.08. The Nasdaq climbed 35.64 points to finish at 1,643.85.

Financials were the best performing sector on the S&P 500 and the KBW bank index was 8.1% higher. JPMorgan Chase & Co led the Dow, rallying more than 9%, while Wells Fargo surged 10.7%. Citigroup was 10.2% stronger after Chief Executive Vikram Pandit said he expects the bank to rebound from its current woes and repay "every dollar" it owes the US government.

United Technologies climbed 4.8% after reporting quarterly earnings that met estimates. The company buoyed investors further by saying it expects to see profit growth in 2010.

On the downside, Merck & Co and Coca-Cola Co caused the biggest weights on the Dow after both companies reported weaker quarterly earnings. Coca-Cola did meet expectations but shares lost 3%. Merck missed forecasts sending shares 6.7% lower.

After the bell, Yahoo Inc climbed 1.6% after reporting lower quarterly sales but earnings that topped estimates. The internet search engine also said it would cut 5% of its worldwide work force.

US light crude oil for May delivery gained $0.63 to settle at $43.51 a barrel. COMEX gold for June delivery slid $4.80 to settle at $882.70 an ounce. Treasury prices slumped, raising the yield on the 10 year note to 2.89% from 2.83%.

The Nikkei added 15.97 points to close at 8,727.30 this morning. Elpida Memory rallied 15% after saying it will raise chip prices. Takefuji Corp dropped 8.5% after S&P said interest refunds may force downgrades at Japan's largest consumer lenders.

The Hang Seng loses 409.94 points to 14,875.95 this morning following a share sale from Dah Sing Banking Group and job cuts at HSBC's private banking unit raised concerns about the industry's earnings prospects.

The FTSE 100 is currently 13.74 points lower at 3,973.72 this morning after a whole batch of stocks began trading without the right to the next dividend, including Centrica (-4.7%), Reed Elsevier (-4.6%), Cadbury (-3.3%), Rolls-Royce (2.3%) BAE Systems (-1.4%) and Petrofac (-1%). Financial stocks lead the risers board, following gains in the

. Barclays jumps 6.2%, Lloyds gains 4.7% and RBS rises 4.6%. Retailers go better after Citigroup upgraded and raised price targets on a number of stocks in the sector. Kingfisher climbs 3.7% and Next is 3.4% higher.

Economics

Bank of

England

minutes (Apr) 09.30 bst

In March, for the first time in well over a year, the Governor achieved his objective of making monetary policy boring. The Bank rate remained unchanged at 0.5 percent and the quantitive easing programme was maintained in its original format.

The news over the past month, relating to both financial markets and the real economy, has shown an improvement. One outstanding question relates to the size of the quantitive easing programme, and whether the additional £75bn authorised by the Chancellor (second half of the overall £150bn) will be exercised by the Bank. The bond markets are largely assuming that the Bank of England will choose to use this full amount, and will be looking for confirmation of this, but is unlikely to be provided by these minutes.

UK Unemployment (Feb/March) 09.30 bst

Employment intentions, according to the Bank of England Agent and PMI surveys, have stabilised, albeit at extremely low levels consistent with ongoing job shedding. The unemployment releases are therefore expected to remain downbeat for the rest of the year. The ILO measure of unemployment will peak at just over 10 percent early next year.

UK Average earnings (Feb) 09.30 bst

In January, average earnings (including bonuses) were lower than year earlier levels for the first time in the series history, reflecting the weakness of financial sector bonuses. Wage growth excluding bonuses remains broadly stable at 3.5 percent.

UK Public finances (Mar) 09.30 bst

Just five months ago, in the November Pre-Budget Report, the Chancellor forecast Public Sector Net Borrowing of £78bn for the 2008/09 fiscal year. Assuming borrowing in March of £21bn, the actual outturn for the full fiscal year would be £96bn.

UK HMT Budget statement 12.30 bst

The Chancellor is expected to announce public sector net borrowing of £177bn for the 2009/10 fiscal year. This would equate to a record 12.5 percent of GDP.

US FHFA house price index (Feb) 15.00 gmt

January's FHFA house price index showed a surprising rise of 1.7 percent. In contrast, the S&P/Case Shiller index continued to drop steadily, falling by 2.8 percent. So far in February, Radar Logic house prices have been relatively stable. The FHFA index is expected to fall 0.8 percent in February, reversing some but not all of January's increase.

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