FTSE 100	4916.8, +20.57	Dow	9539.29, +30.01
FTSE 250	8860.81, +28.92	Nasdaq	2024.23, +6.25
FTSE All Share	2525.01, +10.44	S&P 500	1028, +2.43
Nikkei	10639.71, +142.35	Hang Seng	20479.61, +44.37
Oil (Crude)	$72.05	Gold	$946
Base Rate	0.5%	10 Yr Gilt	3.53%
£/$	1.633	£/€	1.1403
1 month LIBOR	0.541	3 month LIBOR	0.7

 

Markets

London - The FTSE 100 is currently 3.42 points higher at 4,920.22. Serco is the biggest percentage climber in the index, up 5.5%, after reporting first half profit that was 34% higher. In contrast, WPP tops the fallers after reporting a 48% drop in first half profit. Diageo climbs 2.6% after being upgraded by Morgan Stanley. Fresnillo loses 2.1% after beginning to trade with out the right to its next dividend.

New York - All three major US indices closed at 2009 highs again yesterday following positive economic data and the re-nomination of Federal Reserve chief Ben Bernanke. President Obama has re-nominated Bernanke months ahead of the expiration of his current term and this is widely expected to receive the approval of the Senate. In economic news, the August Consumer Confidence figure came in at a much higher than expected 54.1 while the S&P/Case-Shiller home price index rose for a second consecutive month in June, suggesting a recovery on the sector.

The Dow Jones gained 30.01 points to close at 9,539.29 while the S&P 500 added 2.43 points to end at 1,028.00. The Nasdaq rose 6.25 points to finish at 2,024.23.

Home builders unsurprisingly rose, including Lennar Corp, up 2.8%, KB Home gained 3.3% and Pulte Homes, the biggest US builder, climbed 3.5%. Retailers benefited from the higher than expected level of consumer confidence. Women’s retailer Chico’s FAS Inc, who also reported solid results, jumped 7.6% while department store operator Macy’s Inc advanced 3.5%.

US light crude oil for October delivery dropped $2.32 to $72.05 a barrel. COMEX gold for December delivery added $2.30 to $946 an ounce. Treasury prices edged higher, lowering the yield on the 10 year note to 3.44%.
Tokyo - The Nikkei jumped 142.35 points to close at 10,639.71 this morning. Exporters led the advance after the better than expected economic data from the US. Elsewhere, Orix Corp, Japan’s largest non-bank financial company, advanced 4.9% after the Nikkei newspaper said it will invest in a real estate fund.

Hong Kong - The Hang Seng is currently 42.18 points higher at 20,477.42. Financial stocks are prominent after China Life Insurance reported higher profit and Credit Suisse lifted its rating on Bank of East Asia.

Economics

US Durable goods orders (Jul) 13:30 BST/ 08:30 EDT

The new orders component of the ISM survey has been trending higher since the beginning of the year and finally broke above 50 in July, rising to 55.3 from 49.2 in June. Non-defence capital goods orders excluding aircraft have risen for two straight months, up 2.6% in June after a 4.3% increase in May. These are signs that underlying demand may have turned the corner, although the monthly readings will remain volatile as usual. Analysts look for July durable goods orders extransportation to rise by 1.0%. Total durable orders will depends primarily on aircraft and autos. Boeing reported 44 orders in July, up from 20 in June and the highest since July 2008. As a result, non-defence aircraft orders should spike higher, although a pullback in defence aircraft orders could offset some of this gain. However, we should also see a solid increase in motor vehicle and parts orders, as automakers ramped up production. Analysts look for total orders to rise by 2.4%.

US New home sales (Jul) 15:00 BST/ 10:00 EDT

New home sales have shown clear signs of turning up in the Northeast, Midwest, and West, while the South has lagged behind so far, falling 5% to a new cycle low in June. The South is the largest region by size, accounting for nearly 50% of new home sales, and analysts look for some improvement this month. Total new home sales in July could rise to 420,000 up from 384,000 in June.

Corporate

Support services provider Serco Group Plc Wednesday posted a 33% rise in first-half pre-tax profit as activity increased in existing and new markets, and said it’s on track to deliver on 2009 guidance. Serco’s results were boosted by increased demand from customers, principally governments, which are cutting costs to improve public finances while increasing efficiency. First-half pre-tax profit to June 30 rose to GBP83.4 million from GBP62.8 million in the same period last year, while revenue increased 31% to GBP1.95 billion. Net profit was 34.9% higher, at GBP61.4 million from GBP45.5 million. Serco, which provides education services, services to hospitals, IT services and business process outsourcing, so far has been shielded from the global recession and said that strong demand for its products continued. The company said it has signed contracts valued at GBP2.1 billion and has been appointed preferred bidder for GBP1.4 billion of contracts.

WPP Group the world’s largest marketing company by revenue said it expects profitability to improve in the second half, after organic revenue fell more sharply than budgeted in the first half, particularly in the second quarter, as clients cut spending amid the downturn. Still, the group said it expects quarter-to-quarter comparisons for organic revenue to stabilize from now on as comparatives become easier - and that July already indicated a "less-worse" picture. The Dublin-based group, which owns advertising agencies including Ogilvy & Mather, Young & Rubicam and JWT, said further cost actions have been taken in the second quarter that should improve the picture in the second half. Net profit for the six months ended June 30 fell 48% to GBP108.4 million from GBP208.2 million last year, coming in below an average GBP200.8 million forecast by five analysts polled by Dow Jones Newswires. Profits were hit by its euro-denominated debt, with interest payments higher when translated into the weaker sterling. Reported revenue for the period was GBP4.29 billion, up 28% from GBP3.34 billion in the same period last year, boosted by the
first-time integration of market research firm Taylor Nelson Sofres and the benefit from a weaker sterling. Still, the figure was below analysts’ expectations for GBP4.32 billion.

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Posted: August 26th, 2009 under Asset Management.
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