30/08/07     FTSE 100 6132.2, -30 Dow 13289.3, +247.4 FTSE 250 10891.9, -98.1 Nasdaq 2563.16, +62.52 FTSE All Share 3168.18, +16.75 S&P 500 1463.75, +31.4 Nikkei 16153.8, +141 Hang Seng 23438.5, +417.9 Oil (Brent) $72.31 Gold $666.225 Base Rate 5.75% 10 Yr Gilt 5.022% £/$ 2.0103 Euro/Gbp 0.6782 Market report  US stocks surged on Wednesday, erasing the previous days losses, as investors took a big drop in the yen and encouraging comments from the Chairman of the Federal Reserve as signs that the recent market turmoil is waning. The DJIA closed 247.44 points higher at 13289.29, the S&P500 added 31.40 to close at 1463.76 and the Nasdaq closed 62.52 points higher at 2563.16. The yen saw its biggest one day percentage drop against the euro in three years, and against the dollar in two years. The stock rally accelerated in the last hour of trade in response to the release of a letter Federal Reserve Chairman Ben Bernanke sent to Democratic Sen. Charles Schumer of NY. In the letter, Bernanke again stated that the Fed was monitoring trouble in the financial markets, and was prepared to step in and take action if necessary. This reassured investors unnerved by the outdated minutes from the Aug 7 Fed policy meeting, released on Tuesday, in which the bankers seemed more focused on housing and inflation than the turmoil in financial markets. Bernanke also stated that he saw no need for the government to lift the portfolio caps on housing finance leaders Fannie Mae and Freddie Mac, a move Schumer and other congress members have advocated for. Their argument is that the lifting of the caps would allow more people with good credit to get mortgages. Apple rose on speculation that its September 5 media event will include the launch of a new iPod. Seagate Technology rose after the company boosted its fiscal first quarter earnings and revenue forecast late Tuesday, citing stronger demand and better prices. Altria added 73 cents to close at $69.80. The company said it will spin off its Philip Morris international unit, confirming market speculation. Altria also said it was boosting its quarterly dividend by 8.7 percent to 75 cents per share. On the downside, PDL Biopharma fell over 20 percent in usually active Nasdaq trade after saying Tuesday that it was withdrawing its 2007 financial guidance and divesting its marketed drugs. The company also said that an experimental drug in late stage trials failed. US light crude oil for October delivery rose $1.78 to settle at $73.51 a barrel on NYMEX, rising after the governments weekly inventory report showed a bigger than expected drop in oil and gas supplies. The jump in oil boosted oil stocks included Exxon Mobil, Valero Energy and Sunoco. Treasury prices fell, raising the yield on the 10 year note to 4.56 percent from 4.51 percent. COMEX gold for December delivery rose $1.90 to settle at $675.40 an ounce. The Nikkei added 140.99 points to close at 16153.82 as higher oil prices pushed up energy stocks and trading firms, while TDK Corp gained on its plan to buy Thai based Magnecomp Precision Technology. Tokyo Electron rose on a report about strong earnings, while trading house Mitsui & Co advanced after saying it had won an order to build a diesel oil plant in Egypt. The FTSE100 rose on Wednesday as rebounding US stocks and oil and gas producers provided some relief for a market which has recently been shaken by repeated bad news from the credit world. The FTSE100 closed 30 points higher at 6132.2 having nearly 2 percent in the previous session. Oil and producers were among the best performers as oil prices surged. Royal Dutch Shell closed 0.8 percent higher, BG Group added 1.4 percent and BP closed 0.1 percent higher. Whitbread was the biggest gainer, up 3.5 percent as the company reported stronger first half sales. The rise came as the company shelved plans for a £600m bond to fund a cash return to investors due to the turbulent credit market. Antofagasta rose 1.2 percent after posting an 8.4 percent rise in first half profit and said it expected commodity prices would remain buoyant into next year. Economic report  UK Nationwide House Prices (Aug) 0700 BST Prices in this measure were surprisingly weak in July, rising just 0.1% on the month. Analysts expect a higher, but still modest monthly price gain, as new buyer interest has been falling sharply for a number months, according to the RICS survey. UK Consumer Credit and Mortgages (Jul) 0930 After the reassessment of risk in financial markets, the lending data will be particularly important for the real economy outlook, though this month is likely a little early. Analysts expect a decline in the take up of unsecured consumer credit to £0.4bn in July. Mortgage approvals have been surprisingly strong in the last couple of months, which may be a result of a flurry of activity in the build up to Home Information Packs (HIP). We expect a retreat this month. UK CBI Distributive Trades (Aug) 1100 BST The BoE appears frustrated that there hasn't been a decisive reaction by consumer spending to higher interest rates. Analysts have argued that to be sure of a peak in rates, we need to see a dramatic drop in retail spending. This index did weaken last month and analysts expect a further decline this month as higher interest rates take their toll. US GDP (Q2, prelim) 1330 BST/0830 EDT Analysts expect Q2 GDP growth to be revised up to 4.0% from 3.4% in the advance estimate. The key upward revision comes from net trade, after the June deficit was much narrower than expected. We will also get the first published look at Q2 corporate profits. Our earlier estimate based on partial data suggested a 14% annualised rise (2% y-o-y). US Initial Jobless Claims (week 25 Aug) 1330 BST/0830 EDT Last week's claims were pretty much unchanged at 322,000, while the four week moving average climbed to 317,750 from 306,000. Continuing claims have risen to 2.57 million, the highest since April. Analysts expect claims to rise to 330,000 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.