05/05/09

FTSE 100	4243.22, -0.49	Dow	8426.74, +214.33
FTSE 250	7571.33, +42.38	Nasdaq	1763.56, +44.36
FTSE All Share	2174.64, +1.58	S&P 500	907.24, +29.72
Nikkei	8977.37	Hang Seng	16403.67, +22.62
Oil (Crude)	$54.77	Gold	$902.20
Base Rate	0.5%	10 Yr Gilt	3.55%
£/$	1.5	Euro/Gbp	0.886

Markets

stocks rallied on Monday following better than expected pending home sales. The National Association of Realtors index showed a 3.2% rise in March, against expectations for it to just hold steady. Financials were also stronger as investors bet that the government "stress tests" for banks would show balance sheets need less shoring up than feared a few months ago.

The Dow Jones jumped 214.33 points to close at 8,426.74 while the S&P 500 climbed 29.72 points to end at 907.24. The Nasdaq gained 44.36 points to finish at 1,763.56.

The Dow Jones home construction index leapt 9% following the report on pending home sales. Lennar surged 9.3%, Toll Brothers jumped 6.4% and DR Horton rallied 9.1%.

The results of the government "stress test" for banks are expected to be released on Thursday. The government has tested 19 individual companies as well as the broad group of corporations. Citigroup rose 7.7%, Bank of America jumped 19.3%, Wells Fargo rallied 23.7% while JPMorgan climbed 10.2%.

Sprint Nextel surprised investors by posting a quarterly operating profit. The wireless communications company rose 8% as a result.

US light crude oil for June delivery added $1.27 to $54.77 a barrel.

COMEX gold for June delivery gained $14 to $902.20 an ounce.

Treasury prices held steady, with the yield on the 10 year note remaining at 3.15%.

The Tokyo Stock Exchange is closed today.

The Hang Seng is currently higher at 16403.67 with investors buoyed by data from the US that pointed towards a global economic recovery. Bank of East Asia advanced 5.2% after the Commercial Times said Chinatrust Financial held talks with the company to cooperate in wealth management and credit cards.

The FTSE 100 is currently 87.21 points higher with banks and mining companies leading the way. RBS is 14% higher after announcing that Finance Director Guy Whittaker will step down from the board later this year. Lloyds adds 8.7% while Barclays gains 6.9%. Vedanta Resources leads miners higher, improving 11.6%, Eurasian Natural Resources climbs 11.3% while Kazakhmys gains 10.9%.

Economics

ISM manufacturing (Apr) 15.00 gmt

Most survey data has been improving over the past two months, including various readings on manufacturing activity, consumer confidence, and homebuilder sentiment. Last month's ISM non manufacturing dipped to 40.8 from 41.6, reflecting declines in new orders (-1.9 points to 38.8) and employment (-5 points to 32.3). Both of these series could rise this month. Assuming new orders increase to 43 and employment edges up to 34, the ISM non manufacturing composite is expected to rise to 43, up from 40.8 in March.

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