23/08/07 FTSE 100 6196, +109.9 Dow 13236.1, +145.3 FTSE 250 10910.7, +271.4 Nasdaq 2552.8, +31.5 FTSE All Share 3195.66, +59.3 S&P 500 1464.05, +16.95 Nikkei 16316.3. +415.7 Hang Seng 22971.3, +624.4 Oil (Brent) $67.89 Gold $668.70 Base Rate 5.75% 10 Yr Gilt 5.146% £/$ 1.994 Euro/Gbp 0.6788 Market report  Takeover activity and continued talk of a cut in interest rates drove US markets higher yesterday, as for the moment investors put aside concerns over the credit market. Bond and Treasury prices slumped as investors were lured back into riskier assets such as equities. The Dow Jones rallied 145.3 points to close at 13,236.1, the S&P 500 jumped 16.95 points to end at 1,464.05. The Nasdaq advanced 31.5 points to finish at 13,236.1. The banking sector was buoyant following news that several large institutions had borrowed money directly from the Federal Reserve. Banks are usually hesitant to use the discount window as it is a direct loan from the Fed, but analysts were upbeat about this suggesting it could be encouraging for the market after the Fed had said it would be considered a sign of strength. Citigroup rose 0.8% to $48.43, Bank of America added 0.7% to $51.65 and Wachovia rose 0.93% to $49.70, all after stating that they had borrowed $500 million each. In deal news, TD Ameritrade Holding Corp surged on news that it was in merger talks with a combination of other online brokers. The Wall Street Journal reported suggested E*Trade Financial was one of the parties involved, TD closed 4.9% higher at $17.15 while E*Trade slipped 2.06% to $15.25. Elsewhere, Dubai World, the investing arm of the Dubai government, has agreed to buy a 9.5% stake in MGM Mirage. The deal, worth more than $5 billion, sent MGM Mirage 8.9% higher to $126.06. Apple continued to rise on more positive news related to its new iPhone. Reports suggested the company has agreed revenue sharing deals with a number of European network operators ahead of its launch in Europe later this year. Shares in the company gained 3.9% to $132.51. Alcoa was one of the biggest risers on the Dow, finishing 4.7% higher at $36.22 after BHP Billiton - the world's largest miner - posted a 19% jump in second half earnings. US light crude oil for October delivery slipped $0.31 to settle at $69.26 a barrel. COMEX gold for December delivery added $2.50 to close at $668.70 an ounce. Treasury prices dropped, raising the yield on the 10 year note to 4.63% from 4.59% late Tuesday. The Nikkei jumped 415.7 points to close at 16,316.3. The jump traced gains in the US and were helped further by a weakening yen against other major currencies. Companies with a large exposure to US markets, including Toyota Motor Corp, were particularly strong. The market made very little reaction to news that the Bank of Japan, as expected, will keep its short term interest rate at 0.5% The Hang Seng is currently 624.4 points higher at 22,971.3. The index has now made four consecutive gains, again driven higher by speculation that a program to allow Chinese citizens invest directly into the city's securities will be expanded. Cheung Kong Holdings Ltd and its Hutchison Whampoa Ltd unit advanced in the run up to the release of their earnings. Strong mining stocks and a confident start to trading in New York helped the FTSE 100 close almost 2% higher yesterday. The improvement of 109.9 points to 6196 was the fourth gain in a row for the Footsie, which is now back at levels seen at the start of the year. Sentiment was strong from the outset, with positive results from BHP Billiton setting an upbeat tone in the mining sector. The strong full-year results from BHP Billiton, the world's largest mining group, helped the sector gain by almost 6% overall, thrusting major players to the top of the risers board. Lonmin was the top performer up 214p at 3177p, thanks to BHP's results - showing a 35% rise in underlying profits to $13.7bn (£6.9bn) - and the group's positive outlook on commodity prices. BHP rose 64p to 1365p while peers Antofagasta and Anglo American moved up 40.5p to 694.5p, and 148p to 2752p respectively. Mortgage bank Northern Rock saw shares make a much-needed recovery moving ahead 26p to 728p on the back of takeover speculation after a note from Cazenove suggested that HSBC could see the group as a good takeover fit. Man Group, which has also been hit by market uncertainty, put back 23.5p at 481.5p while Invesco added 23p to 605p. Supermarket giant Sainsbury added 15.5p to 530.5p as market rumours suggested the group may receive a sweetened offer from Delta Two, the Qatari royal family-backed fund that is stalking the chain. The pubs sector also provided the market with cheer, after JP Morgan said a recent a fall in the share price of Punch Taverns had been overdone and that long-term prospects for the business remained strong. Punch shares were ahead 6%, or 62.5p at 1039p, while peer Enterprise Inns added 33.5p to 611p and Mitchells & Butlers rose 33.5p to 711.5p. A number of stocks were impacted by going ex-dividend, meaning investors are no longer entitled to the most recent payment. DSG International fell 1p to 159p, while BT Group was off 7p to 305p. On a weak day for the telecoms sector, Vodafone dipped 0.4p to 156p. Economic report  US Jobless Claims (week 18 Aug) 1330 BST/0830 EDT Initial claims have risen for the past three weeks by up to 322,000, while the four week average climbed to 312,500. Analysts look for 320,000 this week. 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. Aventus Capital Management is a trading style, "Aventus" is a trade mark and the Aventus logo is a registered trade mark of Rickerbys Solicitors.  Rickerbys is regulated by the Solicitors Regulation Authority.  Authorised and regulated by the Financial Services Authority.