Date: Tuesday 12 Jun 2012
LONDON (ShareCast) - 1630: After trading cautiously throughout the day, stocks rallied late on after a strong start in the US on the back of hopes for the worlds largest economy. Chicago Fed President Charles Evens has said that he has been in favour of pretty much any accommodative policy Ive heard about. Casuing some concern today though has been surging bond yields in Spain with the 10-year bond yield hitting a euro-era high of 6.8 per cent earlier on. In company news, ICAP was a high riser on hopes that it will benefit from the increased volatility on the back of a Greek exit. Man Group was the worst performer on the Footsie, down nearly three per cent. The FTSE 100 finished 41 points higher at 5,474.
1440: The FTSE 100 is trading eight points higher at 5,440 after Wall Street indices opened moderately higher. Gains in New York have only been modest though as investors keep their eyes closely fixed on periphery bond yields in Europe; Spains 10-year bond yield is 24bp higher at 6.72 per cent, while Italys 10-year bond yield is up 15bp at 6.22 per cent. Helping US stocks higher are hopes that the Fed may announce some sort of stimulus package at the FOMC meeting next week. Chicago Fed President Charles Evans has said that he would support more stimulus in the US to generate more jobs. I've been in favour of pretty much any accommodative policy I've heard about [
] Extending the Twist would be useful [
] More asset purchases would be useful. More mortgage-backed securities purchases would be good, he said.
1311: Footsie has spent most of the session heading south. despite indications that Wall Street will open little changed. It has been a quiet day for company results, with Oxford Instruments and Ted Baker the most high profile companies updating the market. Neither company has fared well after results, with the high-tech Oxford Instruments lower despite Westhouse Securities reiterating its 'buy' recommendation, while Ted Baker is lower despite Panmure Gordon upgrading its profit estimates and raising its price target. Peel Hunt also gives the thumbs-up to Ted Baker's figures and reiterates its 'buy' recommendation. FTSE 100 is up 4 at 5,436.
1228: London stocks are holding higher following yesterdays drubbing despite a negative report out from Fitch to the effect that AAA countries ratings could be affected by a Greek exit from the Eurozone. That ahead of this countrys elections this weekend and as Kathimerini says that deposits are leaving the country at rates of up to 0.5bn euros per day. The ratings agency also believes that Spain will significantly miss its 2012 deficit target. On the positive side of things, ISDA has weighed in saying it is likely that the Spanish bank rescue would not trigger CDS contracts. FTSE 100 up 21 to 5,453.
1054: The strength of tobacco stocks BATs and IMPs is keeping Footsie puffing along, as is demand for precious metals miners Fresnillo and Randgold. Clothes retailers Marks and Spencer and Burberry are out of sorts after a disappointing trading update from sector peer Ted Baker. FTSE 100 is up 24 at 5,457.
1024: The FTSE 100 and the FTSE 250 go their separate ways in early trading, with the former firmer and the latter lagging. RPC is responsible for much of the mid-cap index's decline, as the shares get hammered after the packaging firm accompanied full year results with a gloomy outlook statement. Elsewhere among the FTSE 250 stocks, insurance giant Amlin is on the up despite being downgraded to 'neutral' by Espirito Santo Execution Noble. Countering Espirito Santo's move is an upgrade of Amlin to 'buy' from 'hold' by Deutsche Bank. FTSE 100 is up 30 at 5,462.
0854: The market is still having difficulty deciding whether the Spanish banking bail-out is a good thing or not. Yesterday afternoon's swoon looked likely to continue this morning after Wall Street's weak showing, but London's leading stocks have sprung a surprise by opening slightly firmer on balance. Tobacco stocks are to the fore, but banks are out of sorts. FTSE 100 is up 7 at 5,440.