11.09.07
Retailers in the spotlight on another volatile morning
10.09.07
Follow through to the downside after poor US jobs report
07.09.07
Miners at the head of the pack ahead on a quiet morning
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There was an initial rise in the FTSE 100 index this morning but overall sentiment was mixed with plenty of action in the retail sector. An early leader was Next after it beat H1 profit forecasts although it added that trading is currently tough. Like-for-like sales at its shops fell 3.6% overall and were down a further 4.8% in the six weeks to 8th September.
A small bout of strength at the open was wiped out by another surge of selling as traders continued to react to Friday’s poor jobs numbers in the US. The usual suspects were marked down with weakness seen in some mining stocks, financials and property stocks. Scottish & Newcastle edged up after press reports that it is considering telling Carlsberg to put up or shut up after becoming exasperated by repeated suggestions from the Danish brewer that it fancies bidding for the group. Resolution, which announced changes to the structure of a planned merger with Friends Provident today, said it would still consider alternative bids, but had received no such offers so far.
The mining sector was once again ahead of the pack today as the FTSE 100 index saw a mixed morning. The rumour going round was that a bid may be coming for Rio Tinto from a joint offer between BHP Billiton and Brazilian group CVRD. Elsewhere BAe Systems was a good mover on a report that it will clinch a £20bn deal to supply 72 Eurofighter Typhoon jets to Saudi Arabia next week.
A volatile but positive start in London saw the index up 30 points mid-morning ahead of the Bank of England’s interest rate decision at midday and other central bank announcements through the day. Miners are once again in demand and Rio Tinto led the way with a rise of 3.6% following a broker upgrade and vague takeover rumours. At the other end, Drax dropped 4.1% after it saw both pre-tax profit and revenue fall in H1 as it announced an £83m share buy-back programme.
