FTSE 100	4417.94, +30.40	Dow	8500.33, +96.53
FTSE 250	7572, +53.73	Nasdaq	1774.33, +22.54
FTSE All Share	2252.64, +15.47	S&P 500	919.14, +12.31
Nikkei	9677.75, +155.25	Hang Seng	18851.21,+680.21
Oil (Crude)	$66.31	Gold	$978.80
Base Rate	0.5%	10 Yr Gilt	3.75%
£/$	1.642	£/€	1.153
1 month LIBOR	0.67	3 month LIBOR	1.278

 

Markets

London - The FTSE 100 is currently 74.87 points higher at 4,492.81 as prospects for a global economic recovery heightened. Even news that General Motors will file for Chapter 11 protection today is being seen as another chance to draw a line under the worst of the financial crisis. Miners fill the top of the risers’ board due to rising commodity prices, including copper which adds almost 3%. Banks continue to recover, with RBS the sector’s best individual performer, up 4.5%.

New York - All three major indices finished higher on Friday, ending three month gains for the first time since 2007. Miners and energy companies were lifted by their underlying commodities, while a weakening dollar helped lift exporters.

The Dow Jones gained 96.53 points to close at 8,500.33 while the S&P 500 added 12.31 points to end at 919.14. The Nasdaq climbed 22.54 points to finish at 1,774.33.

Coca-Cola gave the Dow its biggest boost as a result of the sliding dollar. The beverage maker jumped 4.8% as the dollar fell to a five month low against a raft of currencies. IBM followed, for the same reason, adding 1.5% as did McDonald’s. General Motors plunged 33% to its lowest level since the Great Depression as its bankruptcy filing drew closer. Caterpillar rose 2.5% along with mining companies including Freeport-McMoran Copper and Gold, which added 4.3%. A number of metals went higher, including gold, which hit a 3 month high.

US light crude oil for July delivery rose $1.23 to $66.31 a barrel. COMEX gold for August delivery jumped $17.30 an ounce to $978.80. Treasury prices went higher, lowering the yield on the 10 year note to 3.46% from 3.67%.

Tokyo - The Nikkei jumped 155.25 points to 9,677.75 this morning led by shipping lines and resource companies, on optimism demand from the nation’s second-largest export market will increase after China’s manufacturing expanded for a third month. The Federation of Logistics and Purchasing said China’s PMI remained above 50 in May, the threshold indicating expansion.

Hong Kong - The Hang Seng rallies 680.21 points higher at 18,851.21, again boosted by China’s manufacturing figures. China Merchants Holdings, the investor in ports moving about a third of the country’s containers, jumped 9.9%.

Economics

UK PMI manufacturing (May) 09:30 GMT

Analysts expect the PMI survey to improve further in May as weaker sterling and signs of an improvement in global activity start to stimulate UK manufacturing activity.

US Personal income & spending (Mar) 13:30 BST/ 08:30 EDT

April personal income could fall 0.2%, which would be the sixth decline in the past seven months, as aggregate hours worked fell 0.6% and wage growth remains modest. Both auto sales and ex-autos retail sales declined in April. Analysts are expecting personal spending to decline 0.1%, with real PCE dropping by 0.16%. The core CPI in March rose by 0.25%, and analysts think the core PCE deflator could be a bit elevated at 0.27%, with the year-on-year rate climbing to 2.0% from 1.8%.

US ISM manufacturing (May) 15:00 BST/ 10:00 EDT

Both the Empire manufacturing and Philadelphia Fed surveys increased in May. The Empire Index rose to -4.6 from -14.7, the highest reading since last August and only a few points away from expansionary territory. The Philadelphia Fed improved more modestly (-22.6 from -24.4), but there were big increases in the shipments and employment series. Last month’s increase in ISM new orders (47.2 from 41.2) suggests that the rate of contraction is slowing. Analysts look for ISM manufacturing to rise by 4pts up to 44. ISM prices paid could increase to 38 from 32, boosted by a further rise in energy prices.

US Construction spending (Apr) 15:00 BST/ 10:00 EDT

Analysts expect April construction spending to fall by 1.5%. Private non-residential spending continues to decline at a steady pace, with an average decline of 4.7% for the past three months. Last month’s 0.3% rise in total construction spending was boosted by a rise in non-residential spending, but this may prove to be a temporary increase as commercial real estate markets remain stressed.

Corporate

Chloride Plc today posted an inline 33 percent increase in full-year profit and said while it was cautious for the short-term it was confident of the group’s resilience. "We enter the new financial year with an order book at record levels led by Industrial Systems, but remain cautious about the short term," CE Tim Cobbold said in a statement. The company, whose products protect against power shortages at hospitals and airports, reported adjusted pre-tax profit of £43.7m for the year to end-March on sales up 22 percent at £326.7m. The market was expecting adjusted pre-tax profit of £43.5m, up from £33.3m last year.

Phoenix IT reported an 11 percent rise in full-year adjusted pre-tax profit, beating analyst expectations, and said it remained positive about its outlook for the current year. The group posted pre-tax profit before exceptionals of £28.3m on revenue of £253.2m up 9.7 percent. Analysts were expecting revenue of £249.2m and pre-tax profit of £26.8m for the year to end-March. The company said its financial performance was solid despite a difficult economic backdrop, and it continued to have good forward visibility from its order book. "In spite of the continuing macroeconomic uncertainties, we remain positive about the outlook for the current year and beyond," the company said in a statement. It proposed a final dividend of 4.2 pence a share, giving a total payout for the year of 6.3 pence, up 15 percent.

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: June 1st, 2009 under Asset Management.
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