DAILY STOCKMARKET REPORT 2 September 2010
|
FTSE 100 |
5366.41, +141.19 |
Dow |
10269.47, +254.75 |
|
FTSE 250 |
10060.89,+235.75 |
Nasdaq |
2176.84, +62.81 |
|
FTSE All Share |
2767.47, +70.75 |
S&P 500 |
1080.29, +30.96 |
|
Nikkei |
9062.84, +135.82 |
Hang Seng |
20871.23, +247.40 |
|
Oil (Crude) |
$74.03, +$2.08 |
Gold |
$1248.10, -$2.20 |
|
Base Rate |
0.5% |
10 Yr Gilt |
2.92% |
|
£/$ |
1.539 |
£/€ |
1.2034 |
|
1 month LIBOR |
0.569 |
3 month LIBOR |
0.727 |
Markets
London - The FTSE 100 rallied 141.19 points to 5,366.41, its biggest gain in almost two months, following the upbeat US and Chinese manufacturing data. Rio Tinto Plc and Antofagasta Plc gained more than 6% as copper climbed to four-month high while Fresnillo Plc surged 2.7% as gold gained. In deal news, Cable & Wireless Worldwide surged 7.7%, the biggest gain since March, as investors speculated that AT&T or one its competitors may bid for the British company. AT&T spokesman Niall Hickey said the company doesn’t comment on market speculation while Cable & Wireless spokespeople couldn’t immediately be reached for comment. Furthermore, TUI Travel soared 9.2%, the largest gain in more than five months, after Financial Times Deutschland reported that majority owner TUI AG is deciding whether to acquire the shares that it doesn’t already own.
New York - US stocks charged out of the blocks yesterday, starting September with gains of almost 3% on both the Nasdaq and the S&P 500. Investors were already buoyed by a rebound in Chinese manufacturing that had lifted markets worldwide. But the rally kicked into a higher gear following an unexpectedly strong read on US manufacturing. The Institute for Supply Management said its index of manufacturing activity rose to 56.3 in August. Analysts had forecast a drop to 51.5, although a read below 50 had not been ruled out.
Gains were broad based, with more than six shares rising for every one that fell on the New York Stock Exchange. The Dow Jones jumped 254.75 points to 10,269.47, the S&P 500 rallied 30.96 points to 1,080.29 and the Nasdaq surged 62.81 points higher to 2,176.84.
In corporate news, Burger King Holdings jumped 14.7% after putting itself up for sale. The fast food chain has already had talks with potential buyers. Apple gained almost 3% after introducing a new version of Apple TV and a new iPod line-up. Elsewhere General Motors, Ford Motor and Toyota all reported disappointing sales, kicking off what is expected to be the worst August for industry wide auto sales in 27 years.
Tokyo - Asian markets are higher this morning following the manufacturing data from the US. The Nikkei climbed 135.82 points to 9,062.84.
Hong Kong – The Hang Seng is currently 247.40 points higher at 20,871.23. Higher oil and metal prices lift commodity related stocks, including Inpex Corp, Japan’s No. 1 oil and gas explorer, which rose 3%.
Economics
US Initial jobless claims (wk 28 Aug) 13:30 BST/08:30 EDT
Last week’s initial claims reading fell to 473,000 from 504,000, breaking a string of three consecutive weekly increases. This may be a sign that claims are stabilising. Analysts look for 480,000 this week. However, the total number of people receiving benefits has climbed back above 10m and is pointing to an increase in the unemployment rate.
US Non-farm productivity (Q2, final) 13:30 BST/08:30 EDT
This revision to Q2 productivity will depend on the second estimate of Q2 GDP, which was not available at the time of this writing. Based on our estimate of this revision to output, analysts expect Q2 productivity to be revised to show an annualised decline of 2.0%. Annualised growth in unit labour costs could be raised, up to 1.3%.
US Factory orders (Jul) 15:00 BST/10:00 EDT
July durable goods orders were sharply disappointing, rising only 0.3% despite a large increase in aircraft orders. Analysts expect total factory orders to rise 0.4%.
US Pending home sales (Jul) 15:00 BST/10:00 EDT
Pending home sales have fallen by a combined 32% over the past two months. The steep declines partly reflect that home purchases initiated prior to the end of the homebuyer tax credit in April were being completed. A bounce in the extremely low level of pending sales appears likely, even though mortgage purchase applications continued to reflect subdued new demand. Analysts look for July pending home sales to have risen by 4%.
Corporate
Hays PLC, the U.K.’s largest recruitment company, Thursday said the outlook across 90% of its markets, including the U.K. private sector, continued to improve as it returned to growth in its fiscal second half, but full-year profit fell. “In the fourth quarter, 20 countries across the group delivered net fee growth of over 10% as we added headcount to capitalise on the upturn," said Chief Executive Alistair Cox in a statement. The company, which was hit in the recession as weak consumer confidence discouraged workers from changing jobs, saw its business boosted by permanent recruitment and by its international operations. "The agility and flexibility of our business, combined with the investments we have made during the downturn, ideally position us to capitalize on the significant growth opportunities that are increasingly present across our markets," it said. But while Hays returned to growth in the second half, full-year net fees fell 17% to GBP557.7 million, or 21% on an organic basis at constant currency. Pre-tax profit in the year to June 30 fell 80% to GBP29.7 million. Still, Hays reported sequential net fee growth of 8% for the second half and 23% growth in operating profit. It left its dividend unchanged at 5.80p per share.
Posted: September 2nd, 2010 under Asset Management.
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