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24/07/07
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FTSE 100 |
6625.4, +39.2 |
Dow |
13943.4, +92.3 |
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FTSE 250 |
11782.2, -37.2 |
Nasdaq |
2690.58, +2.98 |
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FTSE All Share |
3422.86, +15.07 |
S&P 500 |
1541.55, +7.45 |
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Nikkei |
18002, +38.4 |
Hang Seng |
23510.4, +144.9 |
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Oil (Brent) |
$79.52 |
Gold |
$681.50 |
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Base Rate |
5.75% |
10 Yr Gilt |
5.303% |
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£/$ |
2.063 |
Euro/Gbp |
0.6697 |
Markets US markets rebounded yesterday following Fridays steep losses. The Dow was buoyed by strong profits from Merck while the broader market took strength from takeover activity.
The Dow Jones jumped 92.3 points to close at 13,943.4, the S&P 500 added 7.45 points to end at 1,541.55. The Nasdaq gained 2.98 points to finish at 2,690.58.
Drugmaker Merck surged 7% to $52.33, its biggest daily increase for three months, following a 12% increase in profits. The company also raised its 2007 earnings forecast.
Haliburton Co also beat profit expectations, giving shares a 3.2% boost to $37.74. The world's second largest oil services company hit a one year high of $38.29 earlier in the session.
In deal news, the world's largest offshore driller Transocean Inc announced that it has agreed to buy drilling rig operator GlobalSantaFe Corp for $18 billion. The deal will give the companies a combined market capitalisation of about $48 billion. Transocean climbed 5.5% to $115.96 and GlobalSantaFe rose 4.8% to $78.33.
United Rentals said it has agreed to be bought by private equity firm Cerberus Capital Management in a $4 billion deal. The valuation gives a 6.6% premium on Fridays closing price and pushed shares 1.9% higher to $32.98.
After the bell, American Express lost 1.8% to $63.50 after reporting quarterly results below expectations while Texas Instruments fell 3.1% to $37 after releasing a third quarter revenue outlook range with the midpoint below analysts expectations.
US light crude oil for September delivery fell $0.90 to $74.89 a barrel. The decline came after OPEC's president voiced concerns about high oil prices affecting the global economy.
COMEX gold for August delivery slipped $3.20 to $681.50 an ounce.
Treasury prices were almost flat, leaving the yield on the 10 year note at 4.95%.
The Nikkei added 38.4 points to close at 18,002 this morning. KDDI lifted the market after reporting profit that rose after winning new customers from its rivals. Toshiba rose after the Nikkei newspaper said the company, which had forecast a profit drop, may have a 3% increase in net income. Commodity producers fell in line with declining gold, copper and oil prices.
The Hang Seng is currently 124.3 points higher at 23,489.8. Ping An Insurance enjoys its biggest gain in a month after saying that first half profit may double. Angang Steel enjoyed an upgrade from Goldman Sachs & Co to "buy" from "neutral", climbing the most in seven years.
Financial stocks surged in the UK yesterday day after insurance pair Friends Provident and Resolution confirmed talks over a possible £8.3bn merger. The consolidation hopes helped Friends Provident gain almost 8%, while Legal & General and Prudential were buoyed as investors pondered the prospects for other deals in the sector. Mining firms also featured heavily among the risers in the FTSE 100 Index, which ended a disappointing recent run to close 39.2 points higher at 6624.4.
Friends Provident's share price was up 14.6p to 201p, while Resolution gained 7p to 636p. The merger talk left Legal & General nearly 3% higher at 155.3p and Prudential 10p up at 733.5p, though Standard Life struggled to make headway after a rise of 2.25p to 325.75p. Barclays moved up the risers board after it revealed the Chinese and Singaporean governments now owned sizeable stakes in the business. The pair will increase their holdings if Barclays is successful with an offer for ABN Amro, which it increased with a new proposal worth £45.4bn. Barclays shares jumped 3%, or 21.5p, to 735p, while its bid rival Royal Bank of Scotland was 5.5p higher at 615.5p.
Mining stocks supported the index on news of firmer copper prices and upgrades from brokers. Antofagasta, which has three copper mines in Chile, rose 27p to 763p on an upgrade from HSBC, while BHP Billiton was ahead 32p to 1517p and Vedanta Resources lifted 34p to 1809p. Among the fallers, the property sector was on the back foot as fears over higher interest rates persisted.
British Land was off 42p at 1314p while sector peers Segro fell 10p to 578p. Land Securities was off 25p at 1748p and Liberty International dipped 19p to 1100p. House builders also suffered, with Persimmon off 20p at 1164p and Barratt Developments slipping 15.5p to 948p after survey data showing signs of a cooling housing market.
Meanwhile, downbeat comments from analysts over the prospects for "big ticket" retailers depressed Argos owner Home Retail Group, which was off 8.25p at 441.75p, while Kingfisher fell a quarter of a penny to 222.5p.
Economics UK CBI Industrial Trends (Jul) 1100 BST
Business sentiment improved according to this survey last month with the volume of expected output rising 7 points to 25 - back up close to the February high of 28. Analysts expect sentiment to remain elevated in July as global growth provides some support for UK manufacturers. The 'average prices' component, which fell back a bit in June, will remain the focus as the Bank of England need to see further moderation in these pricing surveys. Analysts expect it to pick up a little in July as higher oil prices will continue to boost cost pressures. 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.
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