FTSE 100	5293.99, +97.18	Dow	10414.14, +85.25
FTSE 250	9099.84, +100.76	Nasdaq	2237.66, +25.97
FTSE All Share	2699.91, +46.55	S&P 500	1114.05, +11.58
Nikkei	10378.03, +194.56	Hang Seng	21088.09, +139.99
Oil (Crude)	$72.47, -$0.89	Gold	$1096, -$15.50
Base Rate	0.5%	10 Yr Gilt	3.9%
£/$	1.608	£/€	1.1223
1 month LIBOR	0.514	3 month LIBOR	0.603

 

Markets

London - The FTSE 100 rallied 97.18 points to 5,293.99 yesterday. Stocks were lifted after the Confederation of British Industry raised its 2010 economic growth forecast. It said growth will resume again with a 0.5% GDP increase in the current quarter, marking an end to Britain’s longest recession on record. This morning the index has continued where it left off, climbing 26.8 points to 5320.79, mirroring strength overnight in the US and Asia.

New York - US stocks rallied yesterday, putting the Dow in positive territory for the month and leaving the Nasdaq at a 15 month high. Positive corporate news and progress with a healthcare reform bill were the main catalysts. The Dow Jones rose 85.25 points to 10,414.14, the S&P 500 gained 11.58 points to 1,114.05 and the Nasdaq jumped 25.97 points to 2,237.66. Healthcare stocks went higher after the Senate voted to end debate on revisions to the reform bill. Following the vote, health insurers Aetna rose 4.7% while Cigna Corp added 3.9%. Elsewhere, Alcoa gave the Dow its biggest lift after it announced a joint venture to build a $10.8 billion aluminium complex in Saudi Arabia. Intel helped push the Nasdaq higher, up 2.3%, after Barclays upgraded the stock.

Tokyo - The Nikkei surged 194.56 points higher to 10,378.03 this morning. A weaker yen helped send exporters higher, while chip makers were prominent on speculation demand is recovering. The yen declined after the Governor of the Bank of Japan said the bank will "persistently" keep interest rates at close to zero.

Hong Kong - The Hang Seng is currently 139.99 points higher at 21,088.09. Banks lead the index higher after the city’s central bank said some Hong Kong lenders may post better than expected profit growth for the year. Aluminium Corp of China is higher after Morgan Stanley predicted prices for the metal may rise.

 Economics

UK GDP (Q3, final release) 09:30 GMT

The first estimate of Q3 GDP was -0.4%, considerably lower than market expectations. Initial estimates of UK GDP are particularly prone to revision (the correlation between initial estimates of GDP and the final estimates is just 0.1%). The second release of Q3 GDP contained a revision to -0.3% and the ONS have recently released data showing that construction output actually rose by 2% in Q3 rather than contracting by 1%, as they had initially estimated. Analysts expect a further upward revision from this release to show that the UK recession did end in Q3 after all.

US GDP (Q3, third estimate) 13:30 GMT/ 08:30 EST

The final estimate of Q3 GDP could be revised slightly lower to 2.7%, down from 2.8%. 

US Existing home sales (Nov) 15:00 GMT/ 10:00 EST

Pending home sales have risen 42% over the past nine months, including a 3.7% rise in October. Existing home sales are up 36% over the same period, so there should still be some room for existing sales to show a further increase. Analysts look for existing home sales to rise to 6.30mn in November, up from 6.10mn in October.

US FHFA house price index (Oct) 15:00 GMT/ 10:00 EST

The Radar Logic measure of homes prices started falling in mid-August, although the declines have levelled-off more recently. Analysts expect the October FHFA price index to be flat on the month.

Corporate

BHP Billiton said Tuesday it has no plans to exit its nickel business, countering a media report that it could be considering selling mines in Australia and Colombia. "We have absolutely no plans to exit nickel," a spokeswoman for the miner said. Aside from the sales of Ravensthorpe and Yabulu refinery, the miner has made some recent, non-fundamental changes to its nickel portfolio. The spokeswoman confirmed BHP is withdrawing from a nickel mining venture in the Philippines following a dispute with its local partner. "We have signed a share and asset purchase agreement with Asiaticus Management Corp. (Amcor) to divest our 40% interest in the Hallmark deposit to Amcor," she said. At the same time, this month BHP agreed to extend an existing offtake agreement with Western Australian nickel miner Western Areas Ltd. The miner has sold its Ravensthorpe nickel laterite project and its Yabulu nickel refinery in Australia this year and has raised concerns about the emergence of nickel pig iron from China on prices. But Chief Executive Marius Kloppers said in August that, while nickel pig iron has changed the dynamics of the nickel market, the company has reconfigured its portfolio of nickel assets and is committed to the business and will consider growing it in the future.

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The above details are provided for information only and are not intended to be construed as solicitation for the sale or purchase of any particular investment nor as specific investment advice.

 

Posted: December 22nd, 2009 under Asset Management.
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