FTSE 100	5371.8, +51.4	Dow	11417.43, +68.88
FTSE 250	8897.3, +29.7	Nasdaq	2389.08, +4.72
FTSE All Share	2733.69, +22.95	S&P 500	1274.54, +7.85
Nikkei	12752.21, -99.48	Hang Seng	20423.25, -508.01
Oil (Crude)	$114.98	Gold	$812.40
Base Rate	5%	10 Yr Gilt	4.539%
£/$	1.868	£/€	1.2610

Markets

London - The FTSE is currently 43 points lower at 5,328.8 with banks among the biggest fallers on renewed credit worries. Miners top the risers board as a result of firmer metal prices.

New York - US stocks rose yesterday, led by the financial and energy sectors as well as strong results from Hewlett-Packard. Stocks had been lower in the morning as investors continued to focus on the problems at Fannie Mae and Freddie Mac. But by lunchtime stocks recovered as oil prices slumped following the government’s weekly oil supply report that showed a bigger-than-expected jump in crude inventories. A last hour run-up in recently battered financial shares helped stocks finish in the positive territory.

The Dow Jones gained 68.88 points to close at 11,417.43, the S&P 500 rose 7.85 points to finish at 1,274.54. The Nasdaq climbed 4.72 points to end at 2,389.08.

Hewlett-Packard jumped 5.7% following earnings figures released late Tuesday. The company reported higher quarterly sales and earnings that topped expectations as well as forecasting that fourth quarter earnings would top current expectations. Elsewhere in the tech sector, Research in Motion climbed 3.4% to $130.28 after Citigroup reiterated its "buy" rating on the stock.

Fannie Mae and Freddie Mac were again in focus, tumbling for a third session. Fannie Mae dropped 27% while Freddie Mac slumped 22%. Investors dumped the stocks on expectations of an imminent government bailout that would wipe out shareholders. However, this sent big banks higher as any bailout is aimed at saving the housing and mortgage market. Wells Fargo shares added 4.1% while Bank of America jumped 4.3%

US light crude oil for September delivery rose $0.45 to settle at $114.98 a barrel. COMEX gold for October delivery edged $1.90 higher to $812.40 an ounce. Treasury prices gained, lowering the yield on the 10 year note to 3.79% from 3.83%.

Tokyo - The Nikkei fell 99.48 points to 12,752.21 this morning. Banking shares were lower after HSBC cut its rating on two of Japan’s largest banks. Sumitomo Mitsui Financial Group, the No. 3 bank by assets, dropped after HSBC said rising credit costs will eat away at profit.

Hong Kong - The Hang Seng is currently 508.01 points lower at 20,423.25. Cheung Kong (Holdings) Ltd, the builder owned by Asia’s richest man Li Ka-shing, declined 2.1% after saying first half profit fell. China South Locomotive & Rolling Stock Corp, the nation’s biggest maker of rail vehicles, soared 18% higher on its debut.

Economics

UK Retail Sales (Jul) 0930 BST

After the rather odd movements in the official retail sales data over the past few months, the market may now apply a healthy discount factor when analysing the movement of this series. The picture painted by the various retail surveys remains bleak. The balance on reported sales according to the CBI has now reached the lowest rate on record (since 1980). The British Retail Consortium and Agent’s Surveys were also weak, although these surveys are of the value of spending and so are boosted by higher prices. Overall, analyst look for a further decline in retail sales in July, although these numbers clearly have a tendency too surprise.

US Initial Jobless Claims (week 16th Aug) 1330 BST/0830 EDT

Initial jobless claims were higher than expected for the fourth consecutive week at 450,000 and the fourth consecutive week at 450,000 and the four week average has risen sharply to 440,500. The Labor Department has said that publicity and notification around the recent extension of benefits has boosted filings for normal benefits in the last few weeks. However, an increase in firings is also contributing to the pick-up, and labor market weakness has also been evident in the monthly employment readings and consumer surveys. Analysts look for initial claims at 430,000 this week. Continuing claims have risen sharply in recent weeks, and we look for a further increase to 3.49m, up from 3.42m.

Corporate

British house builder Persimmon Plc reported a 64% fall in first-half pre-tax profit on Thursday and said it was cutting its dividend. It blamed very difficult market conditions and uncertainty for the rest of 2008 for the cut in the payout to 5p per share from 18.5p. Home sales were down 31% year-on-year as buyers found it much harder to get mortgages, but the company said sales volumes since April have not deteriorated any further. Share in the company, which peaked at 1,544p in January 2007, were up 1.84% to 304.25p today.

Kazakh miner Eurasian Natural Resources Corp posted a 160% jump in half-year earnings per share today on strong metal prices and higher output. The group, the world’s largest producer of ferrochrome, said EPS before exceptional items increased to $1.04 in the first six months of the year from 40 cents last year. ENRC also said it expected a very strong performance in the second half, but cost pressures, especially in core divisions, would continue into next year.

Roofing and insulation supplier SIG Plc said grants to help people insulate their homes and new regulations had boosted sales of insulation products in the UK as it posted a 10.2% rise in underlying interim pre-tax profit to £68.3 million. SIG said demand for insulation products had continued to perform better than other building materials in Britain due to the introduction of the Carbon Emissions Reduction Target Scheme in April 2008, which was creating strong demand from homeowners for retro-fitted insulation. The group said higher thermal performance standards required by the 2006 Part ‘L’ regulations governing new buildings had also boosted demand. Group sales increased by 35.9% to £1.49 billion and by 9.3% on a like-for-like basis. The company increased interim dividend to 8.3p per share from 8.0p a year ago. Chairman Les Tench said the group had performed solidly despite challenging trading conditions. Adding that house building activity in the UK and Ireland had been weak for some time and had fallen very sharply in the UK in recent months.

The above details are provided for information only and are not intended to be construed a solicitation for the sale or purchase of any particular investment nor as specific investment advice.

Posted: August 21st, 2008 under Asset Management.
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