27/05/09

FTSE 100	4411.72, +46.43	Dow	8473.49, +196.17
FTSE 250	7530.02, -11.45	Nasdaq	1750.43, +58.42
FTSE All Share	2247.79, +19.81	S&P 500	910.33, +23.33
Nikkei	9438.77, +127.96	Hang Seng	17886.60, +895.04
Oil (Crude)	$62.45	Gold	$953.30
Base Rate	0.5%	10 Yr Gilt	3.69%
£/$	1.598	Euro/Gbp	0.874

Markets

stocks rebounded from a four day losing streak yesterday after a report showed consumer confidence hit an eight month high. The Conference Board showed its index measuring the level of confidence had its biggest monthly gain in six years from 40.8 to 54.9, against expectations of a rise to just 42. The data also meant investors largely dismissed the S&P/CaseShiller Home Price Index which showed a record 19.1% drop in the first quarter.

The Dow Jones rallied 196.17 points to close at 8,473.49 while the S&P 500 jumped 23.33 points to end at 910.33. The Nasdaq surged 58.42 points to finish at 1,750.43.

Apple boosted the Nasdaq and fellow technology shares after Morgan Stanley upgraded its rating and raised its price target on the stock. The brokerage cited Apple's iPhone as a driver for strong earnings growth over the next two years. Shares in the company gained 6.8%, topping the Nasdaq.

Gains were broad based among stock, with consumer discretionary shares among the top performers. McDonalds Corp added 3.1% while retailer Macy's Inc advanced 5.9%.

US light crude oil for July delivery climbed $0.68 to $62.45 a barrel. COMEX gold for June delivery slid $5.60 to $953.30 an ounce. Treasury prices fell, raising the yield on the 10 year note to 3.51% from 3.46%.

The Nikkei rose 127.96 points to close at 9,438.77 this morning. Stocks were boosted by news that Nikon Corp will cut jobs to stem losses and speculation that the nation's property market has bottomed out.

The Hang Seng is currently 895.04 points higher at 17,886.60. Stocks surged higher after the government unveiled a HK$16.8 billion of tax cuts, fee waivers and spending to spur growth.

The FTSE 100 is currently 25.60 points higher at 4,437.32, continue its 46 point gain from yesterday following the strong consumer data from the

. Gains are broad based with Home Retail leading the risers board, up 4.7%. The improving mood among investors helps lift financials and miners, with Lloyds gaining 3% while Anglo American adds 2.6%. Three stocks trading without the right to the next dividend as of today top the fallers board. Next slips 2.4%, Cobham loses 2.3% and Marks & Spencer fall 2.1%.

Economics

US Existing home sales (Apr) 15:00 BST/ 10:00 EDT

Pending home sales rose 3.2% in March, after a 2% increase in February. Given the Beige Book report of stabilising housing-market conditions in some districts, we expect to see existing home sales rise to 4.75m, which would be an increase of nearly 4%. The improvement could be focused in the South and the Midwest, where pending home sales are up 8% year-on-year in each region.

US FHFA house price index (Mar/Q1) 15:00 BST/ 10:00 EDT

The FHFA house price index has risen for the past two months, up 1% in January and 0.7% in February. The latest daily Radar Logic data suggest that home prices have been relatively stable since the beginning of the year. We look for the March FHFA index to fall 0.6%. For Q1 as a whole, this should translate into a rise of around 0.5%, which would be the first quarterly increase since Q2 2007.

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