FTSE 100	4387.54, -28.69	Dow	8403.80, +103.78
FTSE 250	7518.27, -69.78	Nasdaq	1751.79, +20.71
FTSE All Share	2237.17, -14.73	S&P 500	906.83, +13.77
Nikkei	9522.50, -71.11	Hang Seng	18175.41,+290.14
Oil (Crude)	$65.08	Gold	$961.50
Base Rate	0.5%	10 Yr Gilt	3.75%
£/$	1.606	£/€	1.147
1 month LIBOR	0.669	3 month LIBOR	1.278

 

Markets

London - The FTSE 100 is currently 64.39 points higher at 4,451.93. Gains are broad based with just 4 fallers on the blue chip index, with investors cheered by the improved forecast for growth in China and a number of other positive economic reports. The Nationwide building society said the average house price rose 1.2%during May, the second rise since March when house prices turned higher for first time since October 2007. Miners and oil companies are prominent after metal and oil prices rose overnight.

New York - All three major US indices finished higher yesterday following a volatile session. Stocks see-sawed throughout the morning but gains took hold in the afternoon after the government saw healthy demand for Thursday’s auction of 7 year notes. This tempered some of Wednesday’s fears that rebounding borrowing costs could hinder an economic recovery. Economic data was mixed with new home sales rising slightly less than expected while a monthly report for durable goods orders showed a higher than expected increase.

The Dow Jones rose 103.78 points to close at 8,403.80 while the S&P 500 added 13.77 points to end at 906.83. The Nasdaq finished 20.71 points higher at 1,751.79.

Gains were broad based with 26 risers on the Dow. JPMorgan gave the blue chip index its biggest boost, rising 5.7%, with IBM following, up 1.7%. Energy stocks were cheered by rising oil prices with Chevron Corp climbing 1.9% and Exxon Mobil adding 1.4%. Dell gained 3.2% after reporting results late Wednesday that narrowly beat estimates. First quarter earnings came in at 24 cents per share, against expectations of 23 cents, although net income still dropped 63%. Time Warner gained 2.4% after announcing that it would split from online service company AOL, which will spin off into a separate publicly traded company.

US light crude oil for July delivery jumped $1.63 to $65.08 a barrel. COMEX gold for August delivery gained $8.20 an ounce to $961.50. Treasury prices went higher, lowering the yield on the 10 year note to 3.63% from 3.71%.

Tokyo - The Nikkei added 71.11 points to close at 9,522.50 this morning. A six month high for oil and surging sea cargo rates were the main drivers. Inpex Corp, Japan’s biggest oil explorer, jumped 6.3% while Mitsui OSK Lines, the world’s largest merchant fleet operator, added 5.1%.

Hong Kong - The Hang Seng is currently 290.14 points higher at 18,175.41, led by China related shares, on optimism the nation’s growth prospects will improve and after oil climbed yesterday. A Bloomberg report has said economists have forecast that the world’s third largest economy will expand 7.5% this year.

Economics

US GDP (Q1, preliminary) 13:30 BST/ 08:30 EDT

Q1 GDP could be revised up to -5.5%, from the preliminary reading of -6.1%. The 44% drop in non-residential structures may be revised higher, although the decline will remain sizeable. The 2.8ppt drag from inventories may also be reduced. The GDP price deflator could remain unrevised at 2.9%.

US Chicago PMI (May) 14:45 BST/ 09:45 EDT

So far in May, the Empire index has risen to -4.6 from -14.7, while the Philadelphia Fed increased more modestly, to -22.6 from -24.4. We expect the Chicago PMI to rise about 2pts to 42. The employment index will probably climb further from April’s 31.8, after rising for the past two months. But the key will be whether new orders can rise closer to the breakeven level of 50, after rising 11.2pts to 42.1 in April.

US GDP (Q1, preliminary) 13:30 BST/ 08:30 EDT

Q1 GDP could be revised up to -5.5%, from the preliminary reading of -6.1%. The 44% drop in non-residential structures may be revised higher, although the decline will remain sizeable. The 2.8ppt drag from inventories may also be reduced. The GDP price deflator could remain unrevised at 2.9%.

US Chicago PMI (May) 14:45 BST/ 09:45 EDT

So far in May, the Empire index has risen to -4.6 from -14.7, while the Philadelphia Fed increased more modestly, to -22.6 from -24.4. We expect the Chicago PMI to rise about 2pts to 42. The employment index will probably climb further from April’s 31.8, after rising for the past two months. But the key will be whether new orders can rise closer to the breakeven level of 50, after rising 11.2pts to 42.1 in April.

Corporate

AstraZeneca said today that it has referred its application to use antipsychotic drug Seroquel XR in the treatment of recurrent depressive episodes in adults to a scientific committee of the European Medicines Agency after the Netherlands rejected it. AstraZeneca added that the Canadian regulators have approved Seroquel XR for the treatment of adult patients with major depressive disorder. Seroquel and Seroquel XR are approved in Europe for the treatment of bipolar disorder and schizophrenia. The referral to the Committee for Medicinal Products for Home Use follows notification by the Netherlands Health Authority, acting as the reference member state for the mutual recognition process, that its Seroquel XR application for major depressive disorder had been refused. The London-based drug maker said the results from the clinical trial program demonstrate that Seroquel XR has "potential as a valuable treatment option for patients with" major depressive disorder.

 

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: May 29th, 2009 under Asset Management.
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