UK/Euro Financial Market Daily Morning Briefing 24-04-2006

Trade shares for a living with Intelli-trend 250
Click Here to find out more.

London shares open lower as record oil price prompts profit-taking

Leading shares edged lower in opening deals as jitters over the high price of oil prompted investors to cash in on Friday's fresh five year highs, offsetting positive pension news at BT, dealers said.
   
By 9.10 am, the FTSE 100 was off 2.3 points at 6130.4, with the broader indices mixed.
   
Volume was average with 193 mln shares in 28,349 deals.
   
Utilities were a major drag as recent consolidation hopes were dented by a report in this morning's Guardian that it is looking unlikely German utility E.on will make a bid for Scottish Power, preferring Spain's Endesa instead.
   
In response, Scottish Power fell 4 pence at 569-1/2, International Power slipped 8 at 297-1/4, Kelda was off 6-1/2 at 772 and Severn Trent was down 9 at 1171.
   
The banking sector was also under pressure, with investors cashing in on last week's US interest rate hopes inspired gains.
   
Sentiment was further hit by fears Barclays, Standard Chartered and HSBC could be dragged into a bidding war over Korea's leading credit card company LG Card.
   
Barclays was off 40 at 2783 and Standard Chartered fell 25 at 1408 and HSBC down 11 at 954.
   
Elsewhere, news that crude continued to flirt with a record 75 usd took its toll on oil guzzlers Carnival, 40 lower at 2783, BA, off  3-1/4 and 336-3/4 and ICI -- also 3-1/4 lower at 369-1/2.
   
In contrast, BT took on 3-1/2 at 216-3/4 as the telecoms giant revealed its pension deficit has been reduced to 2.5 bln stg.
   
In addition the group revealed talks with the government over its pension black hole are continuing.
   
In response, dealers said the news suggests the pension fund deficit may not be such an insurmountable problem in any takeover at these levels.

As an ADVFN newsletter subscriber please click the link below to obtain your complimentary investment journals (usually £35 per issue). City Equities Limited have specialised in the Small Cap sector of the stock market since 1992. For a free report click here
City Equities is Authorised and regulated by the Financial Services Authority.

BT was given a further fillip on sector consolidation hopes after US private equity fund Blackstone bought a 4.5 pct stake in German peer Deutsche Telekom.
   
Miners were also courted as copper and aluminium prices hit record highs yet again this morning.
   
Xstrata was the biggest beneficiary, up 53 at 2140, BHP Billiton took on 20 at 1202, Anglo American added 33 at 2493 and Antofagasta firmed 13 at 2481.
   
And unsurprisingly oil companies were lifted by the price of crude and ahead of the upcoming results from the majors.
   
Sentiment was further support as Credit Suisse lifted its rating on the European integrated oil sector from 'underweight' to 'overweight'.
    
BG firmed 10 at 790, Royal Dutch rose 22 at 2065, Cairn gained 2417 and BP, which issues results tomorrow, was 4-1/2 higher at 716-1/2.
   
Tesco and Imperial Tobacco were higher ahead of results this week, up 1-1/4 at 330-1/4 and 3 at 1763 respectively.
   
Tesco is expected to announce record profits of more than 2.2 bln stg, with the Independent on Sunday reporting the UK's biggest grocer could return 1 bln stg to shareholders from an overhaul of its property portfolio.
   
And Imperial Tobacco was given a further fillip by a report in Spain it is is closer than ever to buying Altadis.
   
El Economista claimed Imperial has hired two advisors to study a hostile bid and is poised to offer 44-45 eur per share in the next few weeks.
   
On the second-line, RHM topped the risers, up 10-1/4 at 285-1/4 after a reassuring update.
   
In response, Credit Suisse reiterated its 'outperform' stance on the maker of Mr Kipling cakes and raised estimates.
   
And peer Northern Foods gained in sympathy, up 2-3/ at 92-1/2, further boosted by paper talk it is to sell its Fox's biscuit division.

All IPO can now offer its members the opportunity to participate in the AIM Placing of Talkback plc along with institutional investors.

Offer Closes 28th April 2006. Click here to find out more

M&A also buoyed EMI on the back of a report in the Sunday Times it is preparing to start fresh merger talks Warner "within months" -- 8-1/2 higher at 286-3/4.
   
Finally, Travis Perkins gained 41 at 1607 as brokers welcomed a statement the builders merchant that it expects full year turnover to grow by 9 pct.
   
Bridgewell Securities retained its 'buy' rating, saying the statement confirmed that the first half of the year will remain challenging, but global improvement is expected in the second half, in line with previous comments.
   
Turning to economics, a busy week will be dominated by first quarter GDP data on Wednesday.
   
But today, investors will have to digest a raft of economics with UK retail sales seen rising 0.2 pct in March and up 2.3 pct year-on-year.
   
UK public finance for March and M4 readings will also be scrutinised alongside housing statistics from the Building Societies Association and the British Bankers Association.  
   
Meanwhile, US stocks finished for the weekend mixed as early enthusiasm was tempered as oil prices rose to a record high above 75 usd per barrel.
   
The DJIA took on 4.56 points to 11,347.45, confirming a 1.9 pct gain on the week to end at its best level since January 2000.
   
The Nasdaq fell 19.69 points to 2,342.86 but rose 0.7 pct on the week, with the S&P 500 down 0.18 at 1,311.28, but still up 1.7 pct on the previous five days.
   
And over on Asia, the Nikkei 225 ended down 489.56 at 16,914.40 and the Hang Seng began its afternoon session 129.65 lower at 16,782.50.

US Summary

For a summary of US stocks at the close of trade, click here

Diary of Events

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

Open a Squaregain Dealing account, pay a flat £12.50 for all transactions. UK and international equities, covered warrants, funds, gilts and corporate bonds. Instant account funding via debit card. No account or inactivity fees. Click here for more information.

PARIS - Market data at 10.00 am:

Major indices:
   
CAC-40 down 20.59 points or 0.39 pct at 5,231.79
SBF-80 up 10.42 points or 0.17 pct at 6,167.86
SBF-120 down 12.28 points or 0.32 pct at 3,810.26

Volume: 527 mln eur
7 CAC-40 stocks up
32 CAC-40 stocks down
1 CAC-40 stock unchanged

Major gainers:
   
Geophysique, up 7.00 eur or 5.24 pct at 140.60, leading broad gains in oil stocks as crude prices were at record highs.
   
Infogrames Entertainment, up 0.03 eur or 4.35 pct at 0.72, after reaching a new agreement with lenders.
   
Vallourec, up 23.00 eur or 2.08 pct at 1,123.50, after an Italian newspaper reported that Tenaris SA is interested in acquiring it
   
France Telecom, up 0.28 eur or 1.56 pct at 18.28
   
Total, up 1.50 eur or 0.66 pct at 228.30

Major losers:
   
Societe Generale, down 1.80 eur or 1.45 pct at 122.30. A Chinese newspaper quoted a regulator as saying the limit on foreign ownership in Chinese banks won't be raised, a situation that could thwart a reported SocGen consortium's bid for Guangdong Development Bank.
   
PPR, down 1.45 eur or 1.45 pct at 98.55
   
Lafarge, down 1.40 eur or 1.42 pct at 97.30, after raising its offer for minority shares in Lafarge North America.

InterCasino gives every player up to £50 free every month. With 180 great casino games, huge progressive jackpots, real-time chat on multiplayer tables and 24/7 support, InterCasino is the player’s choice.
InterCasino – it’s Excitement You Can Trust - Click Here

AMSTERDAM - Market data at 10.24 am

Major Indices
   
AEX                476.60, down 1.34 points
AMX Midcap         637.05, down 0.14 point
Government bonds   Flat to slightly higher

Major Gainers
   
Second-liner Stork soared 3.71 pct to 48.40 eur after reports that several private equity funds are contemplating a bid on the company
   
Akzo Nobel added 2.53 pct to 49.04 eur
   
TomTom added 1.18 pct to 32.60 eur, a day ahead of first quarter results
   
Vopak gained 1.63 pct to 29.29 eur
   
Versatel put on 1.05 pct to 0.96 eur
   
ASMI lifted 0.67 pct ot 16.56 eur after reports that one of its shareholders is protesting a move by ASMI's board to block any vote regarding a possible break-up of the company, to be discussed at the next AGM

Major Losers
   
Oce dropped 3.54 pct to 13.35 eur
   
Wessanen shed 3.59 pct to 12.90 eur
   
ASML dropped 1.25 pct to 17.39 eur
   
Hagemeyer shed 1.46 pct to 4.73 eur
   
TNT dropped 1.69 pct to 29.59 eur
   
Rodamco Europe lost 1.75 pct to 87 eur
   
Reed Elsevier shed 2.55 pct to 11.86 eur

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.

ADVFN Services