28/08/07 FTSE 100 6220.1, +23.2 Dow 13322.1, -56.7 FTSE 250 10969.5, +23.8 Nasdaq 2561.25, -15.44 FTSE All Share 3209.46, +11.4 S&P 500 1466.8, -12.55 Nikkei 16287.5, -13.9 Hang Seng 23589.9, +11.2 Oil (Brent) $69.88 Gold $676.20 Base Rate 5.75% 10 Yr Gilt 5.074% £/$ 2.006 Euro/Gbp 0.6802 Market report  US markets went lower yesterday after a weak existing home sales report added to concerns about the housing market and consumer spending. The National Association of Realtors reported that not only did the sale of previously owned homes fall in July, the number of homes on the market jumped to a 16 year high. The Dow Jones fell 56.7 points to close at 13,322.1, the S&P 500 lost 12.55 points to end at 1,466.8. The Nasdaq dropped 15.44 points to finish at 2,561.25. Banks, brokers and lenders went lower amid the continued worries over the credit market. While Goldman Sachs added to the negative view by lowering its third quarter earnings forecast for Bear Stearns, Lehman Bros and Morgan Stanley, citing August as one of the worst operating environments for investment banks it had seen in years. Bear Stearns and Lehman Bros dropped more than 4% and Morgan Stanley closed 1.3% lower. Countrywide Financial slipped 4.8% to $20 after Lehman Bros lowered its 2007 and 2008 earnings per share estimates and dropped its price target. Industrial conglomerates also caused a big drag on the market as investors worried that the troubles in the housing market would dampen the economy. United Technologies slid 0.8% to $73.72 while General Electric declined 1% to $39.00. Home Depot added to fears that the recent buyout boom could be diminishing. The company has reportedly cut the price of the sale of its supply business to private equity firms to $8.5 billion from $10.3 billion. However, shares in Home Depot finished 1.6% higher to $35.25. US light crude oil for October delivery climbed $0.88 to settle at $71.97 a barrel. COMEX gold lost $1.30 to settle at $676.20 an ounce. Treasury prices advanced, lowering the yield on the 10 year note to 4.57% from 4.61% late Friday. The Nikkei slipped 13.9 points to 16,287.5 this morning. Exporters led stocks lower following the negative mood in the US. Toyota Motor Corp fell as the yen strengthened, cutting the value of its overseas earnings. Banks also declined on concern a renewed equity sell off triggered by defaults on US subprime loans will cause losses on credit linked investments. The Hang Seng is currently just 11.2 points higher at 23,589.9. China Life Insurance, the world's biggest insurer by market value, rose to a record after reporting first half profit that beat analyst estimates by 40%. London blue chips closed in positive territory for the sixth session in a row on Friday, marking a welcome respite from last week's turmoil. The FTSE 100 Index rose 23.2 points to 6220.1 after struggling for direction for most of the day amid a lack of corporate or economic news. Financial stocks weakened after a strong run in recent days as credit concerns continued to weigh on the sector. Standard Chartered topped the Footsie fallers' board, down 5% or 77p to 1494p after three Asian banks revealed bigger-than-expected exposure to the US sub-prime mortgage crisis. Private equity group 3i slipped 46p to 1034p; Man Group fell 12.5p to 477.5p. High-street banks were also on the back foot, with Barclays falling 16.5p to 611p, Royal Bank of Scotland off 2.5p at 581p and HBOS dipping 13p to 885p. Northern Rock was back in negative territory following a brief recovery yesterday, amid renewed concerns over the mortgage lender's exposure to tightened credit markets. The stock lost 17.5p to 739.5p, or more than 2%. Energy and utility stocks were in favour after a recovery in oil prices. The cost of oil has been falling amid predictions that a tougher credit environment would stifle economic growth and curb oil demand. However, with no real evidence of a downturn investors returned to the sector. Oil giant BP rose 6p to 552.5p with Royal Dutch Shell up 29p at 1894p and BG Group 20.5p higher at 769.5p while Scottish & Southern Energy also benefited 17p to 1396p. Miners littered the risers board, with Lonmin up 32p at 3172p after an upgrade from HSBC on the belief that the recent sell off has been overdone. Xstrata lifted 51p to 2904p while Rio Tinto climbed more than 2%, or 77p to 3339p. Software firm Sage lifted 3%, or 7.25p to 233.25p, after Merrill Lynch said that the firm's business model should insulate it against short-term shocks in financial markets. Rentokil Initial fell for a second successive session, even though its chief executive forecast a return to profits growth in the second half of the financial year yesterday. Shares were down 3.5p at 167.8p. News that the Office of Fair Trading had cleared BSkyB's acquisition of set-top box maker Amstrad sent the satellite broadcaster 4p higher at 662p. Amstrad was ahead 2.5p at 149p. On a quiet day for corporate news, fund manager Henderson slipped 3.5p to 135.25p, even after the group reported higher half-year profits and said it expected to withstand the current volatility in financial markets. Economic report  US Consumer Confidence (Aug) 1500 BST/1000 EDT This will be a crucial gauge of sentiment amid the turmoil in financial markets. Analysts have already seen some indications that confidence deteriorated sharply during the month. The preliminary reading for Michigan sentiment fell to 83.3 from 90.4, the lowest in a year. Meanwhile, the ABC/Washington Post started to waken at the beginning of the month, but the latest reading collapsed to -20 from -11. Analysts look for confidence to drop to 104 from 112.6. This assumes that the present situation index declines around 6pts to 134 and the expectations index drops 10pts to 85. US FOMC Minutes (7 Aug) 1900 BST/1400 EDT In the August 7 statement, the FOMC pointed out that credit conditions had tightened and that the downside risks to growth had "increased somewhat", but kept an upside inflation bias and noted strong growth in employment ad incomes. Those comments have now been superseded by the August 17th announcement that the downside growth risks had "increased appreciably", but these minutes will show the FOMC's reaction to the financial turmoil in late July and early August. 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. 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