FTSE 100	5370.2, -1.6	Dow	11430.05, +12.62
FTSE 250	8939.10, +41.8	Nasdaq	2380.38, -8.7
FTSE All Share	2734.79, -1.1	S&P 500	1277.71, +3.17
Nikkei	12666.04, -86.17	Hang Seng	20392.06
Oil (Crude)	$121.18	Gold	$835
Base Rate	5%	10 Yr Gilt	4.586%
£/$	1.867	£/€	1.2566

Markets

London - The FTSE 100 is currently 37 points higher at 5,407.2 this morning. Lloyds TSB tops the risers board, gaining 3.3% while International Power tops the fallers board, down 1.3%.

New York - US markets were mixed yesterday with the Dow and S&P 500 making small gains, while the Nasdaq finished lower. Rallying oil prices drove energy related shares higher, as tensions in Russia caused worries about supply disruptions. But bank shares floundered as analysts predicted more write downs from mortgage related losses.

The Dow Jones gained 12.62 points to end at 11,430.05, the S&P 500 rose 3.17 points to close at 1,277.71. The Nasdaq fell 8.7 points to finish at 2,380.38.

Financial stocks suffered after an analyst at Citigroup widened their third quarter loss estimate for Lehman Brothers as well as cutting their quarterly earnings view of Goldman Sachs and Morgan Stanley. However, late in the session, Lehman Brothers rebounded after one analyst raised his rating on the stock to "buy" from "neutral" saying the investment bank may become a hostile takeover target. Lehman finished just 0.1% lower, while Goldman Sachs slipped 1.2% and Morgan Stanley lost 0.9%.

Energy shares were one of the top performing sectors of the day. Chevron Corp gained 2.4% and Exxon Mobil climbed 2%. The S&P’s energy index finished 2.3% higher.

US light crude oil for September delivery surged $5.62 a barrel to $121.18. COMEX gold for October delivery rose $19.70 to settle at $835 an ounce. Treasury prices fell, raising the yield on the 10 year note to 3.83% from 3.79%.

Tokyo - The Nikkei closed 86.17 points lower at 12,666.04 this morning, to end its biggest weekly loss in two months.

Makers of rubber products declined after the price of crude ramped up, while in contrast stocks such as Inpex Holdings gained in line with the commodity. Kawasaki Kisen Kaisha led shipping lines slower after Mizuho Securities cut its rating.

Hong Kong - The Hang Seng has been shut today as Tropical Storm Nuri approached the city.

Economics

UK GDP (Q2, prelim) 0930 BST

The PMI readings for the construction, manufacturing and the service sector all fell below the 50 no-change level during the course of Q2, which would point to GDP growth of nearer 0.1% on the quarter. Therefore, there is a reasonable chance that the advance Q2 GDP reading of 0.2% gets revised down. But our central case is that it remains unrevised from the advance reading. In this release we receive the expenditure breakdown. Analysts expect a 0.5% gain in consumption, a 2% decline in investment, stock building to add 0.1ppt to growth and net trade to add a similar amount.

Corporate

British services group Rentokil Initial reported a 55.3% decline in first-half profit and said a group-wide restructuring programme was continuing but warned the group’s recovery would take time. Rentokil, whose businesses range from rat catching to tropical plant hire, said trading in its textiles and washroom businesses had deteriorated in the second quarter, while its City Link courier service remained significantly loss making. Pest control also saw signs of a slowdown in the UK and United States, Rentokil said in the results statement on Friday. Rentokil posted adjusted pretax profit for the six months to end June of £39.3 million as revenue rose 4.8% to £1.12 billion. Last month the company issued its fourth profit warning in eight months and said profit before tax, goodwill and one-off items was likely to be £35 million for the full year, down from analysts’ previous consensus forecast for £151 million.

Advertising group WPP Group like-for-like sales grew 4.3% in the first half thanks to strong growth in emerging economies, beating market forecasts, and the company raised its interim dividend by 20%. WPP, whose advertising agencies include Ogilvy & Mather and Young & Rubicam, said on Friday business activity in 2008 should match that of 2007, helped by the Beijing Olympic Games and the U.S. presidential election, both advertising drivers. First-half sales were £3.339 billion, beating the Reuters Estimates consensus of £3.244 billion. Headline operating profit rose 9.2% in constant currencies to £453.4 million, also beating expectations. The headline operating margin rose 0.5 percentage points to 13.6%, edging closer to WPP’s 2008 target of 15.5%.

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 22nd, 2008 under Asset Management.
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