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24/10/08

FTSE 100 4087.83, +46.94 Dow 8691.25, +172.04
FTSE 250 6128.65, -103.97 Nasdaq 1603.91, -11.84
FTSE All Share 2053.73, +15.3 S&P 500 908.11, +11.33
Nikkei 7649.08, -811.9 Hang Seng 12864.32, -896.17
Oil (Crude) $67.84 Gold $714.7
Base Rate 4.5% 10 Yr Gilt 4.368%
£/$ 1.585 Euro/Gbp 0.798

Markets
The major US indices were mixed yesterday, with the Dow and S&P 500 rising while the Nasdaq finished lower. The session epitomised that of recent weeks as stocks swung between gains and losses with the final direction only becoming clear in the last minutes of trading. In economic news, the number of American's filing new claims for unemployment last week jumped 15,000 to 478,000, topping forecasts for a smaller rise to 465,000.

The Dow Jones jumped 172.04 points to close at 8,691.25, the S&P 500 gained 11.33 points to end at 908.11. The Nasdaq slipped 11.84 points to finish at 1,603.91.

Health related stocks were among the strongest performing after results from three major drug makers. Amgen Inc, Bristol-Myers Squibb and Eli Lilly and Co all reported stronger than expected figures, sending the S&P healthcare index 1.6% higher.

Dow Chemical rallied 10.5% following third quarter results that beat expectations. Although the US's largest chemical maker warned that the global economy was likely to struggle through a recession for most of 2009.

Adding to the weak jobs data from the government, Goldman Sachs will reportedly cut around 3,260 jobs or about 10% of its work force due to difficult financial conditions. Furthermore, General Motors hinted that it would announce more job cuts as part of its ongoing restructuring program aimed at cutting costs.

After the bell, Microsoft said revenue and profits rose in its first quarter, but that second quarter and full year sales and earnings would be slightly lower than consensus estimates.

US light crude oil for December delivery gained $1.09 to settle at $67.84 a barrel. COMEX gold for December delivery dropped $20.50 to settle at $714.70 an ounce. Treasury prices went higher, lowering the yield on the 10 year note 3.54% from 3.59%.

The Nikkei sank 811.90 points to 7,649.08 this morning as Sony Corp cut its forecast, Toyota Motor's quarterly car sales fell for the first time in seven years, and the yen reached a 13 year high. The Nikkei now sits at its lowest level since April 2003, just 41 points from its lowest since 1982!

The Hang Seng is currently 896.17 points lower at 12,864.32. HSBC Holdings Plc slumped 7.9% after Morgan Stanley cut its share price estimate on the stock. Cathay Pacific Airways, the country 's biggest airline, dropped 8.5% as crude oil prices climbed yesterday.

The FTSE 100 is currently 157.71 points lower at 3,930.12, with all but one of the UK's blue chip index in negative territory. HSBC tops the fallers board, down 9% after Morgan Stanley lowered its price target on the stock by 25%. Barclays loses 5.2% after UBS lowered its rating on the stock to "neutral" from "buy". BG leads energy firms lower after declining to comment on a report in Australia that it will make a full offer for Queensland. Vedanta Resources leads miners lower, sliding 9%, after copper, nickel, lead, zinc and aluminium prices also fell.


Economics
US Existing Home Sales (Sep) 1500 BST/1000 EDT

Pending home sales rose by a hefty 7.4% in August, which likely means an increase in existing home sales in September. Some of the increase in the pending home sales in September. Some of the increase in the pending series may reflect higher foreclosure sales, particularly for properties with substantially reduced prices. The tax credit of up to USD7,500 for new home buyers was signed into law in late-July and may also have boosted sales. Analysts look for existing home sales to rise to 5.05m in September. However, mortgage purchase applications have declined recently as credit conditions tighten further, and home sales are likely to drop back in the next few months.

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 name of Rickerbys LLP (OC328675) registered in England and Wales, registered office Ellenborough House, Wellington Street, Cheltenham GL50 1YD. A list of the Members of Rickerbys LLP will be provided on request or can be inspected at this address. Aventus is a trade mark and the “A” logo is a registered trade mark of Rickerbys LLP. Rickerbys LLP is regulated by the Solicitors Regulation Authority. Authorised and regulated by the Financial Services Authority. 

 

 


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