UK/Euro Financial Market Daily Morning Briefing 23-05-2006

Serious about Trading? Try the only financial platform that covers it all.
Click here for a FREE Trial.

London shares bounce back in early deals as miners, oils return to favour

Leading shares bounced back strongly this morning, recovering from yesterday's heavy losses thanks to bargain hunting across oil and mining stocks and an encouraging clutch of blue-chip results, although M&S was down, dealers said.
   
At 9.00 am, the FTSE 100 index was up 75.2 points at 5,607.9. The broader indices also opened up, with the FTSE 250 bouncing 231.8 points higher to 9,060.4.
   
Volume was moderate, with 454.9 mln shares changing hands in 55,113 deals.
   
Wall Street closed lower last night, with the DJIA down 18.73 points to 11,125.33 and Nasdaq 21.03 points lower at 2,172.86, its weakest close in six and a half months.
   
Across Asia overnight, the Nikkei 225 index closed 258.67 points lower at 15,599.20, while the Hang Seng ended 59.04 points higher at 15,864.56.
   
Oil prices moved back above the 70 usd level in early trade, as experts expect another active Atlantic hurricane season.
   
New York's main contract, light sweet crude for July delivery, was up 61 cents at 70.57 usd a barrel on Nymex.
   
Metal prices also regained some poise after recent heavy losses, with gold taking on 50 cents to 658.20 an ounce, while silver and copper prices also edged higher in electronic trade.

Then find it at Barclays Stockbrokers, where online trades cost as little as £7.50 if you place more than 10 trades per quarter (usual fee £12). Our award-winning service gives you a great rate, trading tools and much more.
Apply now. Click here.

UK mining stocks were the main drivers of the London market's recovery this morning, as traders went bargain hunting after recent losses, encouraged by a bullish note on the sector by Citigroup.
   
The broker said recent heavy falls are overdone and advised clients to 'buy while stocks last.'
   
Anglo American added 79 pence to 1984, Xstrata gained 84 pence to 1848, BHP Billiton edged 49 pence higher to 1012-1/2 and Rio Tinto climbed 112 pence to 2772.
   
Among the oils, Cairn Energy gained 91 pence to 2074, BP added 14-1/2 pence to 624 and Royal Dutch Shell put on 27 pence to 1796 in early deals.
   
Elsewhere, Yell added 15-1/2 pence to 479 after an upbeat set of full-year numbers.
   
The UK telephone directories publisher said revenues jumped by over a quarter during the financial year just ended, buoyed by its takeover of a large US rival.
   
The owner of the iconic Yellow Pages directory said pretax profits rose to 317.4 mln stg in the 12 months to the end of March, versus 234.4 mln last year.
  
In response, Merrill Lynch reiterated its 'buy' advice and said the 2006 results came in ahead of expectations with organic growth of 10 pct, amongst the highest in the sector.
   
British Land was also higher after solid results, adding 58 pence to 1221, with the property group announcing that its NAV in the year to March 31 rose 32 pct to 1486 pence, with underlying pretax profit up 26 pct at 228 mln stg.
   
Merrill Lynch maintained its 'buy' stance
   
Upbeat comments from the US broker also helped its sector peers, with  Land Securities, Hammerson, Liberty and Slough Estates all being upgraded to 'buy'.
   
The move comes as the broker notes having witnessed a 10 pct fall in share prices in the last two weeks, and with underlying fundamentals looking set to remain sound for the year ahead.

No-one can be truly certain…but that isn’t to say there aren’t signs. Get Zak Mir’s special 3-part ‘Making Money Out of Charting’ guide FREE by email next week exclusively to UK-Analyst.com members, from the UK’s best known chartist!
Don’t miss it – join UK-Analyst.com free

Land Securities and Liberty International both stood out with gains of 55 pence to 1741 and 24 pence to 997 respectively.
   
Marks & Spencer shares fared less well however, with the High Street giant hit by an uninspiring set of full-year numbers and a lack of a meaningful outlook.
   
The high street giant reported a profit before tax, exceptionals and the impact of asset disposals of 751.4 mln stg, up 35.1 pct from the previous year and in line with guidance of 745-755 mln stg issued by the company last month.
   
In reaction, JP Morgan said the numbers were strong, although this was anticipated by the market and added that the components of the pretax profit figure are slightly disappointing.
   
It also pointed out that there is virtually no comment of a forward-looking nature and no news on any financial restructuring.
   
M&S shares were down 17 pence at 550.
   
On the second line, AB Ports jumped nearly 15 pct, up 98-1/2 pence to 768-1/2 after a Goldman Sachs-led consortium increased its bid for the largest UK port operator to 810 pence per share.
   
AB Ports confirmed this morning that it has received a non-binding proposal of 810 pence from the private equity consortium, trumping a previously rejected offer of 730 pence.
   
On the economic front, US ABC Consumer Confidence for May should attract some attention later today.

US Summary

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

Diary of Events

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

Get a fair deal with Squaregain. Pay a flat £12.50 for online and phone trades. UK and international equities, covered warrants, funds and bonds. Limits and stops at no extra cost. Click here for more information.

Paris shares AFX at a glance outlook

FORTHCOMING EVENTS
   
TODAY
   
May business climate indicator, 8.45 am
   
April household consumption, 8.45 am
   
PPR AGM
   
BNP Paribas AGM
   
Atos Origin AGM
   
Havas AGM
   
Euronext AGM
   
Bourbon AGM
   
Gecina AGM
   
Generale de Sante AGM
   
Guyenne et Gascogne AGM
   
TOMORROW
   
Lafarge AGM
   
Peugeot AGM
   
Gaz de France AGM
   
Bic AGM
   
Nexity AGM

COMPANY NEWS
   
Euronext says NYSE merger proposal 'most attractive offer'
   
Spain stock market regulator approves Mittal's initial bid for Arcelor
   
Veolia sees 8-10 pct annual growth in next 10 years, mainly organic
   
Bouygues acquires Swiss firm Marazzi; sees surge in Losinger unit sales
  
France publishes decree authorising govt to proceed with Aeroports de Paris
IPO
   
Unions plan mid-June day of action against GDF-Suez merger
   
Breton says EADS explanations on Sogerma site closure insufficient
   
AGF has no plans to securitize auto insurance portfolio
   
TF1 sticks to H1 ad revenue target; Q1 net profit up 22.3 pct to 74.5 mln
   
Alstom-led consortium wins 247 mln eur metro car order in Budapest

   
MACROECONOMIC/POLITICAL/MISCELLANEOUS NEWS
   
Breton says no real risk today of inflation in France
   
French household debt reached record 64 pct of revenues in 2005 - BOF study

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.

Amsterdam shares AFX at a glance outlook

FORTHCOMING EVENTS
   
TODAY
   
Dutch May consumer confidence (8.30 am)
   
Dutch May business confidence (8.30 am)
   
Euronext AGM
   
Crucell Q1 results conference call (1.00 pm)

COMPANY NEWS
   
Philips to acquire baby care products co Avent for 460 mln stg in cash
   
ASML raises Q2 order book outlook due to strong demand
   
Crucell Q1 net attributable loss 14.7 mln eur, still targets cash
break-even in 2007
   
Deutsche Boerse sees 300 mln eur synergies through Euronext merger
   
Shell Australia lifts 2005 EBIT 70 pct to 1.23 bln aud
   
Euronext says NYSE merger proposal 'most attractive offer'

MARKET SENTIMENT
   
ASML upgraded to 'neutral' vs 'sell' at Merrill Lynch
   
Randstad upgraded to 'buy' vs 'neutral' at UBS

Click here now to download the ADVFN Tool Bar.

German shares AFX at a glance outlook

 FORTHCOMING EVENTS
   
TODAY
   
German final Q1 GDP (8.00 am)
   
HeidelbergCement AGM
   
HVB AGM
   
QSC AGM
   
Aareal Bank AGM
   
EM.TV Q1 results
   
Bundesbank president Axel Weber to deliver speech on "European Financial
Integration" at the Foreign Bankers Association 2006, Amsterdam (4.30 pm)

TOMORROW
   
April import prices (8.00 am)
   
Ifo business climate index (10.00 am)
   
Arques Q1 results
   
Vossloh AGM
   
SolarWorld AGM
   
GPC Biotech AGM
   
Deutz Q1 results
   
Deutsche Boerse AGM

MACRO-ECONOMIC/ POLITICAL NEWS
   
German final Q1 GDP growth 0.4 pct vs Q4; confirms preliminary results

MARKET NEWS/ SENTIMENT
   
Deutsche Boerse in focus as Euronext offer tops NYSE bid
   
Porsche upgraded to 'overweight' vs 'equal-weight' at Morgan
Stanley
   
Inflation fears behind recent declines on European exchanges 

Singapore 3.07 pm (0707 GMT) Tokyo 12.10 pm (0310 GMT)

Forex

ADVFN Services