UK/Euro Financial Market Daily Morning Briefing 04-07-2006

How to turn a £10 bet into £2,000+ in one day! Click Here

London shares open lower, quiet, low volume trade, Vodafone upgrade

Leading shares opened lower this morning with trading expected to remain quiet in the absence of any significant newsflow and the July 4 holiday in the US today, with Vodafone benefiting from a broker upgrade, dealers said.
   
At 9.05 am, the FTSE 100 was off 14.0 points at 5,870.4, with the broader indices all slightly higher.
   
Early volume was low with 174.8 mln shares trading in 17,382 deals.
   
Last night on Wall Street, the DJIA rose 77.80 points to 11,228.02 but amid light volume as investors readied themselves for the July 4 holiday. The S&P's 500 index gained 9.99 to 1,280.19, and the Nasdaq composite index surged 18.34 to 2,190.43.
   
Over in Asia, the blue-chip Nikkei 225 Stock Average closed 66.88 points better at 15,638.50, while the Hang Seng Index ended the morning up 24.53 points or 0.15 pct at 16,351.19.
   
Among the few companies registering any significant movement, Astrazeneca slipped after ING withdrew its buy advice on the pharmaceutical firm and instead recommended investors hold the stock.
   
ING said over the next few months, several key events will determine the future value of AstraZeneca as a standalone business.
   
However, given the recent rally which saw AstraZeneca's share price move above the broker's 3,100 pence target, ING said it believes the rewards no longer outweigh the risks. The shares lost 31 pence to 3,233.
   
Meanwhile, Vodafone rose 1 at 118-3/4, after Deutsche Bank upped its rating to buy from hold on valuation grounds.

Save up to 50% on Jermyn Street style shirts and accessories, from silk ties to silver cufflinks, by shirt-maker Joseph Turner.
Click Here

The broker said that it believed the shares will be underpinned by both the share consolidation through to July 28 as well as the fact that the management's full-year targets for 2006/07 are unlikely to be changed.
   
Housebuilder Persimmon put on 4 pence to 1,253 after second line peer Bellway was upped to 'buy' versus 'neutral' at UBS saying that results from the the sector suggested that the first half of 2006 has been a strong trading period.
   
On the second line, Tullow Oil gained 11-3/4 pence to 397-1/4 after posting a positive well update.
   
Earlier this morning, the Australian operator of the well test, Hardman, said flow rates from all zones tested within its Uganda oil discovery to date have exceeded expectations.
   
On the earnings front, Greene King posted pretax profit before exceptional items of 119.6 mln stg for the 52 weeks to April 30 2006 compared with 94.0 mln last time while revenue in the period was up 16 pct to 818.6 mln stg.
   
The numbers were said to be in line with market expectations and the pub group's shares were a tad lower at 828-1/2, off 0-1/2 pence.
   
Arriva slipped after the European transport services group said trading for the six months ended June is in line with expectations and with Panmure Gordon keeping to its 'hold' advice.
   
Arriva shares dipped 9 pence at 594-1/2.
   
This morning, the transport firm also announced it has won the contract to operate rail services between Munich, Oberstdorf in the Bavarian Alps and Lindau, southern Germany.

ADVFN is always interested to know the thoughts and views of its users.

As retail investors are aware the markets are very volatile at the moment, so in light of this we would like to find out where you think the markets are headed. 

We would be very grateful if you would take a few moments to fill out this short questionnaire (seven questions).

 Click here to take part. Many thanks in advance for your help.

Reacting to the news, Panmure Gordon noted that Arriva acquired a German bus company during the year, for which integration is going well.
   
Also reporting numbers, Rank Group edged higher as increased hopes for the sale of the leisure group's Hard Rock cafe chain offset a mixed trading update.
   
This morning, Rank said it is carrying out a strategic review of its Hard Rock chain to decide whether or not it should remain a part of the group.
   
In response, Deutsche Bank reiterated its 'hold' advice and cut its price target to 190 pence from 235p.
   
In broker related news, Weir Group gained 3 pence to 437 after the engineer group was initiated an 'add' at Numis with a price target of 484 pence.
   
In a note to clients, the broker said following the acquisition of pump manufacturer Gabbioneta and the disposal of several non-core activities, the portfolio of businesses within Weir is looking more robust.

Diary of Events

For a diary of key financial and corporate events in the UK today, click here

US Summary

For a summary of US stocks at yesterday's close of trade, click here

TheWrongPrice.com can help you make informed investment decisions, advising you when best  to buy and sell shares to maximise the return on investment.

Since its inception in 2000, TheWrongprice.com team has consistently proven their ability to identify smart investment opportunities. Our recommendations have outperformed FTSE100 by a record 78.1%. Click here for a special subscription offer. 

Amsterdam shares AFX at a glance outlook

AMSTERDAM - Shares are expected to open flat to higher, following overnight gains on Wall Street and Asian markets, dealers said.
   
Yesterday, the AEX closed 3.22 points or 0.73 pct higher at 443.47.

Forthcoming Events
   
Tomorrow
   
Oce Q2
  
Thursday
   
Dutch final Q1 GDP (8.30 am)

Today's Press
   
Petercam said 3 of its 6 directors have resigned to start hedge fund (Het Financieele Dagblad)

Company News
   
ING Real Estate purchases Prague office complex for 37 mln eur
   
SBM Offshore completes Roncador FPSO sale, sees over 10 mln usd gain
   
Market Sentiment
   
USG People initiated 'buy' at UBS with a 75 eur price target

For World Cup bets go to BlueSq - Free £25 bet
Click Here

FRANKFURT - Market data at 9.59 am
   
Major indices:
   
DAX 30 - 5,704.93, down 7.76 points or 0.14 pct
MDAX - 8,006.21, up 30.44 points or 0.38 pct
TecDAX - 671.48, up 4.28 points or 0.64 pct
DAX future - 5,740.00, down 25.00 points or 0.43 pct

Major gainers:
   
ThyssenKrupp, up 0.62 eur or 2.25 pct at 28.22, as the market welcomed news it is planning to buy back up to 25,724,452 shares, representing 5 pct of its capital, with the proceeds possibly to be used for acquisitions
   
Hypo Real Estate, up 0.40 eur or 0.84 pct at 47.92
   
MAN, up 0.26 eur or 0.46 pct at 57.10
   
Metro, up 0.20 eur or 0.45 pct at 44.20
   
Commerzbank, up 0.08 eur or 0.28 pct at 28.88

Major losers:
   
Volkswagen, down 0.85 eur or 1.54 pct at 54.35, as the euro strengthened against the US dollar
   
DaimlerChrysler, down 0.39 eur or 1.01 pct at 38.38, amid the stronger euro, after the auto giant said US passenger car sales for the whole group totaled 206,748 units in June, down 13 pct year-on-year, and as Morgan Stanley cut its price target on the stock to 46 eur from 50
   
TUI, down 0.14 eur or 0.90 pct at 15.44
   
Infineon, down 0.05 eur or 0.57 pct at 8.77
   
Siemens, down 0.37 eur or 0.54 pct at 68.10

Now you can enjoy all the thrills and spills of the FTSE without having to take on the Bulls and the Bears or having to wear a ridiculous colour shirt! Paddy Power offer live betting on the movements of the FTSE, DAX, CAC 40 and the ISEQ.
Sell, Sell, Sell the old shirt and Buy, Buy, Buy a new one! Bet Now.

PARIS - Market data at 9.58 am:

Major indices:
   
CAC-40 down 13.15 points or 0.26 pct at 4,967.46
SBF-80 down 8.77 points or 0.15 pct at 5,713.14
SBF-120 down 8.39 points or 0.23 pct at 3,604.51

Volume: 222 mln eur
13 CAC-40 stocks up
25 CAC-40 stocks down
1 CAC-40 stock unchanged
(Arcelor temporarily suspended from CAC-40)

Major gainers:
   
AGF, up 0.45 eur or 0.49 pct at 93.00
   
Carrefour, up 0.23 eur or 0.50 pct at 45.90
   
Thales, up 0.10 eur or 0.33 pct at 30.38. It said yesterday it will expand its research activity to the US.

Major losers:
   
Renault, down 1.60 eur or 1.90 pct at 82.60. It is open to discussing a tie-up with General Motors that analysts did not consider positive for Renault. Meanwhile, data for June showed the French car market remains lacklustre.
   
Peugeot, down 0.51 eur or 1.03 pct at 48.80
   
EADS, down 0.22 eur or 0.99 pct at 22.06, amid a report that the management changes at EADS and its Airbus unit could help competitor Boeing.

Forex

ADVFN Services