FTSE 100	4280.86, +2.4	Dow	8555.60, +58.42
FTSE 250	7241.67, -67.38	Nasdaq	1807.72, -0.34
FTSE All Share	2179.78, -1.95	S&P 500	918.37, +7.66
Nikkei	9786.26, +82.54	Hang Seng	17880.79, +104.13
Oil (Crude)	$71.37	Gold	$934.60
Base Rate	0.5%	10 Yr Gilt	3.88%
£/$	1.636	£/€	1.1751
1 month LIBOR	0.666	3 month LIBOR	1.252

 

Markets

London - The FTSE 100 is currently 29.39 points higher at 4,310.25. Aviva tops the risers’ board, gaining 4.1% while Petrofac leads the fallers, off 1.7%. British Sky Broadcasting benefits from a broker upgrade courtesy of UBS. The company is now rated at Buy from Neutral sending shares 2.2% higher.

New York - The Dow Jones and S&P 500 managed modest gains yesterday, buoyed by positive economic data. The Labour Department reported a slight rise in the number of Americans filing new claims for unemployment, however, continuing claims dropped for the first time since the week ending January 3rd. Also, the Philadelphia Fed index, a read on regional manufacturing, jumped from -22.6 to -2.2, against expectations of a rise to -17. Furthermore, the index’s measure of future activity rose to its highest level since 2003.

The Dow Jones gained 58.42 points to close at 8,555.60 while the S&P 500 added 7.66 points to end at 918.37. The Nasdaq edged 0.34 points lower to 1,807.72.

Defensive stocks benefited from what are still uncertain market conditions. Coca-Cola topped the Dow gaining 3.8% while Merck rose 3.6%. Large manufacturers were boosted by the Philadelphia Fed index with both Alcoa and DuPont climbing more than 1.4%. In contrast, Caterpillar lost 2.1% after saying its retail sales of machines had fallen at a faster pace in May.

After the bell, Research in Motion reported quarterly profit that rose but gave a weak outlook that disappointed investors. Shares in the BlackBerry maker dropped 5% in after hours trading.

US light crude oil for July delivery added $0.34 to $71.37 a barrel. COMEX gold for August delivery slipped $1.40 to $934.60 an ounce. Treasury prices slumped, raising the yield on the 10 year note to 3.83% from 3.69%.

Tokyo - The Nikkei climbed 82.54 points to close at 9,786.26 this morning. Banks led the rise after Goldman Sachs said the sector was undervalued. Mitsubishi UFJ Financial, Japan’s biggest listed bank, jumped .1% after being upgraded to a Buy rating.

Hong Kong - The Hang Seng is currently 104.13 points higher at 17,880.79 this morning. Exporters are higher following the positive data from the US. L & Fung, the biggest supplier of clothes and toys to Wal-Mart and Target Corp, adds 1.9%.

 Economics

There is no major economic news today

Corporate

Taylor Wimpey said today that its order book has risen 73% to £971 million since the end of last year as the housing market has stabilized in recent months, and that it expects to cut its £1.01 billion debt further. Taylor Wimpey, which recently strengthened its financial position with a £510 million capital raising, said it had been "encouraged by the ongoing stability in the U.K. housing market, but remain cautious with regard to the prospects of the wider economy and, in particular, the potential impact of rising unemployment." The company remains focused on cutting costs until the profile of any recovery becomes clearer. In a trading update ahead of the group’s annual shareholder meeting Friday, Taylor Wimpey said its local business is "well placed to benefit from the more stable market conditions, as a result of the operational actions that we have taken since the start of 2008." The level of unsold completed homes remains tightly controlled and it expects to see an increase in the average selling price of completions in the second half of the year as a result of planned mix changes. The group’s net debt stood at £1.01 billion at June 17 following its recent capital raising. Taylor Wimpey will release results for the six months to June 30 on Aug. 5. Its shares closed Thursday at 31 pence. The stock has tripled in value since the start of the year, but remains 40% below the level of 12 months ago.

Russia’s Gazprom Neft, the oil arm of gas export monopoly Gazprom, tightened its grip on Sibir Energy yesterday. Gazprom Neft has been buying minority shares in Sibir Energy since April and has become the company’s biggest stakeholder, accumulating 34.07% of shares. Yesterday they appointed Igor Tsibelman as the new chief executive, replacing acting CEO Stuard Detmer. Sibir Energy has been dogged by corporate governance issues since it agreed to buy distressed real estate assets from its core owner Chalva Tchigirinski in October last year. Trading in Sibir’s shares were halted in February at 175 pence each, pending investigations into erroneous statements to shareholders about its dealings with Tchigirinski. A year ago, Sibir Energy’s shares traded at 814 pence each, making it the most valuable company on London’s AIM. Tsibelman, the new Sibir CEO, has together with Gazprom Neft’s Chief Financial Officer Vadim Yakovlev, also been appointed to Sibir’s board. Yakovlev will be a non-executive director at Sibir. Last month, Gazprom Neft made an offer for the entire company. Tchigirinski and his business partner Igor Kesaev each hold 23.5% stakes in Sibir, while the Moscow City Government holds 18%. Tchigirinski’s shares currently are held as loan collateral by state lender OAO Sberbank, while Moscow City has said it won’t sell its shares. Analysts believe Gazprom Neft’s ultimate goal is to eventually consolidate Sibir Energy, but they said much depends on what will happen to the remaining shares.

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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: June 19th, 2009 under Asset Management.
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