FTSE 100	5364.81, +40.85	Dow	10464.40, +30.69
FTSE 250	9170.76, -10.42	Nasdaq	2176.05, +6.87
FTSE All Share	2796.76, +18.4	S&P 500	1110.63, +4.98
Nikkei	9383.24, -58.40	Hang Seng	22210.41, -401.39
Oil (Crude)	$77.96	Gold	$1187
Base Rate	0.5%	10 Yr Gilt	3.58%
£/$	1.654	£/€	1.0977
1 month LIBOR	0.511	3 month LIBOR	0.610

 

Markets

London - The FTSE 100 rose 40.85 points to close at 5,364.81 this morning. Investors were buoyed by data showing the economy contracted less than first feared between July and September. Compass was the biggest riser, adding 6% after it reported a big rise in annual profits. This morning the FTSE has dropped 73.20 points to 5,291.61. Legal & General is one of the biggest fallers after Citigroup recommended selling shares in the company. Miners also weigh as metal prices fall. On a limited upside, United Utilities and Severn Trent dominate followings Ofwat’s decision to keep water prices mostly unchanged in the period from 2010-2015 against expectations of a decrease in bills.

New York - US indices finished higher yesterday as investors welcomed positive employment and housing data. New claims for jobless benefits fell sharply in the latest week, while sales of new U.S. single-family homes rose in October to their highest level in a year. The Dow Jones gained 30.69 points to 10,464.40, the S&P 500 rose 4.98 points to 1,110.63 and the Nasdaq climbed 6.87 points to 2,176.05. The US stock market is closed today for Thanksgiving.

Tokyo - The Nikkei fell 58.40 points to close at 9,383.24 this morning. Exporters dropped as the dollar weakened against the yen. Although the fall was offset by rises in resource-linked shares after gold marked a record high.

Hong Kong -The Hang Seng is currently 401.39 points lower at 22,210.41. Mainland banks continue to slump on concern they may need to sell shares to replenish capital. China Minsheng Banking Corp, the city’s biggest public share sale since April 2007, dropped 1.8% on its debut.

Economics

UK CBI Distributive trades (Nov) 11.00 gmt

Household disposable income is still being supported by low interest rates. Now rising home prices and low job shedding is boosting consumer confidence. The John Lewis sales in November showed a double digit increase on the year, so the balance on reported sales is expected to increase to 15.

Corporate

U.K. water regulator Ofwat Thursday kept consumers’ water bills flat for the period 2010 to 2015, which will allow over GBP22 billion investment in the sector - the largest ever. The regulator’s decision means the average bill across England and Wales will decrease by GBP3 to GBP340 by 2015 before inflation. This is about GBP34, or 10%, lower than companies’ proposals. Analysts viewed Ofwat’s decision as positive for water companies Pennon, United Utilities, Severn Trent and Northumbrian Water as Ofwat kept water prices mostly unchanged against expectations of a decrease in bills. "There’s more to this than just low bills, it’s about what customers get for their money," said Ofwat Chief Executive Regina Finn. "We’ve scrutinised every pound in the companies’ plans to make sure they deliver what customers want. At a fair price. "We’re allowing companies to invest more than ever before, GBP22 billion. We’re making sure it’s invested in the right place, at the right time, for the right price. Everyone will see real benefits from these proposals," Finn added. This week, U.K. water companies posted profits for the first half fuelled by price increases to customers. Every five years Ofwat sets the amount by which water companies can increase customer bills.

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Posted: November 26th, 2009 under Asset Management.
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