FTSE 100	4249.16, -37.77	Dow	8519.69, -59.42
FTSE 250	6231.5, -53.6	Nasdaq	1532.35, -31.97
FTSE All Share	2122.42, -18.68	S&P 500	871.63, -16.25
Nikkei	8723.78	Hang Seng	14220.79, -401.6
Oil (Crude)	$39.91	Gold	$847.20
Base Rate	2%	10 Yr Gilt	3.12%
£/$	1.483	£/€	1.0627
1 month LIBOR	2.295	3 month LIBOR	2.935

 

Markets

London - The FTSE 100 is currently 35.97 points higher at 4,285.13. Stocks are higher for the first time in three days as investors bought shares in companies which are more resilient to the slump in the economy. BAE Systems leads the risers, up 3.8%, Imperial Tobacco adds 2% while Diageo adds 1.5%. On the downside, Cobham loses 1.1% following a downgrade from Goldman Sachs to neutral.

New York - US markets fell yesterday following light trading volume and concerns over fourth quarter corporate earnings. Retailers fell on concerns that the holiday shopping season could be its worst for 40 years, while falling oil prices dragged the energy sector lower. The auto industry was again in focus following negative comments from Toyota Motor.

The Dow Jones fell 59.42 points to close at 8,519.69, the S&P 500 declined 16.255 points to end at 871.63. The Nasdaq slid 31.97 points to finish at 1,532.35.

Walgreen Co fell 4.2% following its first quarter results. The No 1 US drug store chain posted weaker than expected net income of $408 million or 41 cents a share. Analysts had forecast earnings per share of 46 cents. The company also said it was opening fewer stores than previously planned as consumers cut back on spending.

Manpower slumped after withdrawing its profit outlook following light demand for temporary workers as a result of the global recession. The top US staffing company plunged 14.2%.

The US listing Toyota Motor Corp slid 5% after saying it would suffer an operating loss for the first time in 71 years. General Motors plummeted 21.6% following comments from a Credit Suisse analyst. The brokerage downgraded the stock, whilst warning that the leading automaker may have already been drained of equity leaving shareholders out in the cold.

Caterpillar caused one of the biggest weights on the Dow after saying it would axe 800 jobs at one of its engine plants and cut white collar pay by up to 50%. Shares in the heavy machinery maker slipped 2.1%.

Energy stocks also weighed heavily on the Dow, following another slide in oil prices. Chevron lost 2.1% while Exxon Mobil fell 1.9%.

US light crude oil for February delivery dropped $2.45 to settle at $39.91 a barrel. COMEX gold for February delivery rose $9.80 to $847.20 an ounce. Treasury prices fell, raising the yield on the 10 year note to 2.14% from 2.07%

Tokyo - The Japanese Stock Exchange is closed today.

Hong Kong - The Hang Seng dropped 401.60 points to close at 14,220.79 on concerns a smaller than expected interest rate cut in China will fail to prevent the nation’s economy from slowing. Cathay Pacific Airways fell 1.9& after the South China Morning Post said the airline posted lower sales.

Economics

UK GDP (Q3, final) 09.30 gmt

The final release of Q3 GDP is expected to be unrevised at -0.5 percent. The final GDP release includes additional information on the income side of the accounts, including the savings rate, which is expected to remain very low.

US GDP (Q3, final) 13.30 gmt

The final reading of Q3 GDP is expected to stay at 0.5 percent, and the GDP price deflator is expected to remain at 4.2 percent.

US Existing home sales (Nov) 15.00 gmt

Pending home sales fell 0.7 percent in October, were down 1 percent year on year and 30 percent from their 2005 peak. Existing home sales are down 1.6 percent from a year ago and down 31 percent from late 2005. Existing home sales for November are expected to have fallen to 4.9m, down from 4.98m in October. Pending sales in the west fell 9 percent in October, but are still up 17 percent year on year boosted by foreclosure sales at distressed prices.

US OFHEO house price index (Oct) 15.00 gmt

The September decline of 1.3 percent was the biggest monthly drop so far for the IFHEO purchase-only index. A fall of 1.2 percent in October is expected. This would take the year on year rate to -7.6 percent, down from -7 percent.

US University of Michigan confidence (Dec, final) 15.00 gmt

The preliminary reading improved to 59.1 from 55.3, reflecting a 29 point rise in buying conditions, as consumers cited lower prices. Meanwhile, the ABC consumer comfort index rose slightly to -51, up from -54 two weeks ago. The final Michigan reading is expected to be 59.5 for December. Inflation expectations have been trending lower for the past six months. The preliminary survey showed the five year median falling to 2.7 percent from 2.9 percent, while the one year median fell to 1.7 percent from 2.9 percent.

US New home sales (Nov) 15.00gmt

The latest NAHB homebuilder survey stayed at a record low reading of 9, with the assessment of present and future sales actually slipping slightly. This suggests that we are unlikely to see a meaningful rebound in new home demand this year. Mortgage purchase applications rose 39 percent towards the end of November but have dropped back over the past two weeks. November new home sales are expected to have fallen to 420,000 down from 433,000 in October.

Corporate

The Times reported today that Centrica may reduce the £3.1 billion offer it made to Electricite de France for a 25% stake in British Energy Group after the European Union placed conditions on the takeover deal.

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.
If you would like to discuss any aspect of financial planning or investment, one of the specialist advisors in Lupton Fawcett’s Financial Services and Tax Department would be delighted to help.
Initial meetings are without obligation or charge. Please contact Paul Smith on 0113 280 2095 or email paul.smith@luptonfawcett.com

 

 

Posted: December 23rd, 2008 under Asset Management.
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