FTSE 100	5159.72, -5.98	Dow	9742.20, -47.16
FTSE 250	9215.57, +46.17	Nasdaq	2124.04, -6.7
FTSE All Share	2648.79, -0.21	S&P 500	1060.61, -2.37
Nikkei	10133.23, +33.03	Hang Seng	20851.62, -161.55
Oil (Crude)	$66.71	Gold	$994.40
Base Rate	0.5%	10 Yr Gilt	3.61%
£/$	1.606	£/€	1.1001
1 month LIBOR	0.5	3 month LIBOR	0.54

 

Markets

London - The FTSE 100 is currently 10.28 points higher at 5,170. Man Group rallies 6.3% after a trading update. As a result Oriel Securities have upgraded the stock to Buy from Hold. Smiths Group jumps 5.25% after positive full year results. Following broker upgrades, Legal & General and Sage climb 5.4% and 3.1% respectively. On the downside, Marks & Spencer slips 1.3 after its second quarter trading statement.

New York - US stocks pulled back yesterday as weak consumer confidence data overshadowed positive housing data and strong corporate results. The Conference Board said consumer confidence fell in September to 53.1 from 54.5 August. Analysts had forecast a rise to 57. In contrast the Case-Shiller 20-city home price index rose 16% in July from June - three times what analysts had expected.

The Dow Jones dropped 47.16 points to close at 9,742.20 while the S&P 500 fell 2.37 points to end at 1,060.61. The Nasdaq lost 6.7 points to finish at 2,124.04.

Drugstore chain Walgreen rallied 9.2% after reporting quarterly profit which topped analysts expectations. After the bell, Nike reported earnings that beat forecasts, pushing shares 4% higher in extended trade, having already risen 1.9% in normal hours.

US light crude oil for October delivery edged $0.13 lower to $66.71 a barrel. COMEX gold for December delivery added $0.30 to $994.40 an ounce. Treasury prices fell, raising the yield on the 10 year note to 3.29% from 3.28.

Tokyo - The Nikkei gained 33.03 points to close at 10,133.23 as corporate result forecasts outweighed UBS’s decision to cut the ratings of property developers. NGK Insulators and Foster Electric said their first half profits probably exceeded forecasts.

Hong Kong - The Hang Seng is currently 161.55 points lower at 20,851.62 as the fourth initial public offering in a week plunged and China said it will cut petroleum prices. China South City Holdings, the developer and operator of logistics and trade centres, tumbled 27% on its first day of trading. 

 

Economics

UK GfK consumer confidence (Sep) 00:01 BST

A combination of increased housing and equity prices, and a decline in fears of unemployment, appear likely to boost consumer confidence further in September.
US ADP employment (Sep) 13:15 BST/ 08:15 EDT
ADP private sector employment fell by 298K in August, the smallest job loss since November last year. With economic recovery starting, ADP payrolls should fall by less in September, and analysts forecast -180K.
US GDP (Q2, third estimate) 13:30 BST/ 08:30 EDT
Analysts look for the final estimate of Q2 GDP to remain unchanged at -1.0%.  
US Chicago PMI (Sep) 14:45 BST/ 09:45 EDT
After underperforming in recent months the Chicago PMI rose 6.6pts to 50 in August, making up most of the gap relative to other regional manufacturing surveys. The new orders index rose to 52.5, but, based on the latest Beige Book, the increases appeared to reflect partly a need to replenish lean inventories and partly a more broad-based recovery in demand. The recent boost to auto production is also filtering through in the form of increased orders for auto suppliers, which are largely based in the Chicago district. Analysts look for Chicago PMI to rise to 53 in September.
Corporate

Man Group said today that its assets grew in the three months to Sept. 30, ending a 15-month decline, as redemptions from institutions clients markedly slowed and funds posted performance gains. Funds under management now stand at around $43.8 billion, from $43.3 billion at June 30 and $46.8 billion at March 31. The encouraging news on the asset growth came as the hedge-fund group said it expects pre-tax profit for its first fiscal 2010 half ending Sept. 30 to be around $280 million - less than half of the $622 million it was in the same period a year ago but better than in the previous six months, when Man Group was losing assets and fund performance was poor. However, though institutions cut the amount of money they withdrew - to $1.7 billion in the second quarter from $3.6 billion in the first - they are still being cautious on new investments. For the six months, institutional sales were just $700 million. Private investor sales were much stronger, at $5 billion. Hedge funds on average have reversed course in 2009 after a dismal 2008, with industry returns reaching 14% in the first eight months of the year, according to Hedge Fund Research Inc., from a 19% loss for all of 2008.

Marks & Spencer Group today reported better-than-expected fiscal second-quarter sales, driven by the introduction of more affordable food and revamped clothing and homeware ranges, but cautioned that trading conditions will remain difficult well into next year. "Whilst there is more visibility in the marketplace and consumers appear more confident, we continue to be cautious about the outlook," Stuart Rose, executive chairman and chief executive, said in a brief statement. "We expect 2010 to be a tough year and we will continue to run the business accordingly," he added.

Marks & Spencer, the U.K.’s largest clothing retailer and a bellwether for the nation’s consumer sentiment, has been hit hard by the U.K. recession as shoppers seek out cheaper clothing and food elsewhere. As a result, the group has revamped its food offer and introduced a budget-range of grocery products. It has also cut capital spending, laid off 1,230 staff and closed some stores. In the U.K., sales from stores open at a least a year were down 0.5% in the 13 weeks to Sept. 26 from a year earlier, better than analysts’ expectations for a 1.4% fall. That compares with a 1.4% fall in the first-quarter of fiscal 2010. Second-quarter forecasts ranged between a fall of 0.5% to 2.2%, based on forecasts from 11 analysts. M&S’ high-end food business reported flat same-store sales, slightly better than the 0.5% fall in the first-quarter. Analysts had expected a 0.3% fall. Within the group’s U.K. general merchandise unit, same-store sales fell 0.8%, much better than the 2.4% fall in the previous quarter. Analysts had expected a 2.7% drop

Industrial conglomerate Smiths Group Wednesday posted a 2% decline in full-year pre-tax profit due to weaker underlying sales, and said in the year ahead it would focus on delivering further cost savings and improving cash flow. The U.K. maker of medical and security-screening equipment reported pre-tax profit for the year ended July 31 fell to GBP371 million from GBP380 million a year earlier. Operating profit jumped 10% to GBP418 million from GBP381 million. Sales climbed 15% to GBP2.67 billion from GBP2.32 billion. But on an underlying basis, excluding the effects of currency translation and acquisitions and disposals, sales fell 7%, or GBP180 million. Smiths Detection accounted for GBP99 million of that amount, reflecting the variable nature of the order flow, particularly lower sales from the ports and borders market. A restructuring program that began last year delivered savings of GBP17 million. Free cash flow rose to GBP256 million from GBP91 million.  

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Posted: September 30th, 2009 under Asset Management.
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