Greg Secker – U.K. Market update brought to you by Traders University

UK Stock Market Report 6th September 2010 

FTSE 100 climbed 1.1% or 57.1 points to 5,428.2. FTSE 250 added 0.6% or 63.1 points to 10,204.1.

 Yesterday, UK markets were higher with the FTSE 100 index closing at a 4 month high, as the latest payroll data pointed to improving conditions in the US job market. Miners, Kazakhmys, Anglo American and BHP Billiton, gained between 1.8% and 3.1%, after firm base metal prices. Oil producers, BP, Essar Energy and Royal Dutch Shell, added between 1.7% and 2.3%, due to hopes that energy demand would increase. Vodafone, is up 1.1%, this led telecommunications stocks higher, after Credit Suisse upgraded the sector, citing a rise in the confidence in the sustainability of strong cash flows and dividends due to improving growth. Takeover speculation kept investors interested in Aggreko, Premier Foods and Autonomy, while positive broker reviews benefited BAE Systems and MAN Group.

UK Stock Market Report 3rd September 2010

FTSE 100 gained 0.1% or 4.6 points to 5,371.0. FTSE 250 added 0.8% or 80.1 points to 10,141.0

Yesterday, the UK markets closed marginally higher with the FTSE 100 extending its gains, after the US reported better-than-expected pending home sales data. Banks, Lloyds Banking Group, Standard Chartered and Royal Bank of Scotland, gained between 0.8% and 0.9%, due to risk appetite increasing among the investors. Insurers, Old Mutual, RSA Insurance and Prudential, added between 0.7% and 1.8%, in line with a rise in the banking sector. Water companies, Severn Trent, United Utilities, and Pennon Group, rose between 0.9% and 1.0%, as Nomura Securities speculated a spurt in m&a activity in the sector in the coming 12 months. However, gains were restricted by losses in miners, despite a rise in metal prices. Investors also exercised caution, ahead of US non-farm payrolls data, which is scheduled to be released today.

Due for release today is the GBP Services PMI, USD Non-Farm Employment Change, USD Unemployment Rate and ISM Non-Manufacturing PMI.

UK Stock Market Report 2nd September 2010

FTSE 100 gained 2.7% to 5,366.4 and the FTSE 250 advanced 2.4% to 10,060.9.

Yesterday, the UK markets rallied with the FTSE 100 index showing its biggest daily gain in almost two-months, as miner, oil producers and banks recorded gains, after upbeat manufacturing data from US and China. Miners, Kazakhmys, Vedanta Resources, and BHP Billiton, climbed between 3.9% and 6.9% and copper prices rallied to its four-month high along with other base metals prices. Oil producers, Royal Dutch Shell, Tullow Oil and Petrofac, all up between 0.9% and 3.1% and they benefited from a rise in oil prices. Banks, Barclays, Royal Bank of Scotland and HSBC, gained between 1.3% and 4.3% due to risk aversion retreating among investors. Investor sentiments were also boosted by various m&a news among travelling & telecom stocks such as TUI Travel and Cable & Wireless Worldwide. Positive broker reviews helped Land Securities and Intercontinental Hotels to close higher.

Due for release today is the GBP Nationwide HPI m/m.

UK Stock Market Report 1st September 2010

FTSE 100 rose 0.5% or 23.7 to 5,225.2. FTSE 250 advanced 0.5% or 45.2 points to 9,825.1

Yesterday, UK markets closed higher with the FTSE 100 index staging a late rally, after upbeat US economic data helped ease concerns over global economic recovery. Rio Tinto, was up 2.4%, leading the miners higher, after BofA Merrill Lynch Global Research upgraded the stock from “Neutral” to “Buy.” Precious metal miners, Fresnillo, Randgold Resources and African Barrick Gold, gained between 1.9% and 3.2%, which is in line with the rise in gold and silver prices. Banks, RBS , Lloyds Banking Group and Standard Chartered, gained between 0.8% and 2.5%, as risk appetite increased among the investors, after Credit Suisse’s positive review on the European banking sector. ARM Holdings witnessed its highest daily close since 2002, amid renewed takeover talk, boosting hopes of more merger & acquisition activity in the technology sector.

Due for release today is the GBP Manufacturing PMI.

UK Stock Market Report 18th August 2010

The FTSE 100 rose +74.45 points or +1.41% on Tuesday to 5350.55

George Osborne yesterday said he would not shy away from ambitious plans to slash public spending, insisting the economy would fall into a tailspin unless Britain’s yawning deficit is dealt with. The chancellor was attempting to take on critics – both in the Labour party and in the coalition government – who say the austerity measures could weigh on the economy’s growth prospects. And he called on those who oppose his plans for the biggest fiscal tightening in a generation to offer an alternative instead of sniping from the sidelines.

The Labour Party, which is in the process of electing a new leader, has failed to present its own plan for getting to grips with the deficit. Some leadership candidates back former chancellor Alistair Darling’s plan to halve the deficit in four years – a strategy that would have meant huge spending cuts – while others say the main focus should be on shoring up the anaemic economy. Despite his insistence that sharp deficit reduction is the only credible course of action, Osborne warned that he agreed with Bank of England governor Mervyn King’s prediction the recovery would be “choppy”.

He said it was unrealistic to expect a “smooth ride” considering the scale of the economic crisis. The chancellor has staked his reputation on maintaining the country’s triple-A credit rating, but yesterday Moody’s warned Britain was still at risk of downgrade.In separate matters, rising food prices offset a drop in the cost of fuel in July but annual inflation remained stubbornly above 3 per cent in July.

The strong inflation figures forced Bank of England governor Mervyn King to pen his second letter of explanation to chancellor George Osborne and to admit that the Monetary Policy Committee (MPC) had been surprised by the recent strength of inflation.Official figures revealed that inflation eased slightly to 3.1 per cent thanks to expected lower petrol prices and a sharp slowdown in the inflation rate for second-hand cars. But with food prices surging 0.7 per cent in July – the biggest monthly jump for two years according to the Office for National Statistics (ONS) – annual CPI inflation rate stayed more than one per cent above the Bank’s two per cent target.

Due for release today is the GBP MPC Meeting Minutes