UK/Euro Financial Market Daily Evening Briefing 29-06-2007

All you need to know about Spread Betting. Click Here.

Leading blue chips closed firm, at the session high having spent much of the morning in negative territory, shrugging off nervous jitters caused by today's security threats in London, and with a strong start to Wall street following a spate of positive economic news.

At the close, the FTSE 100 index was 36.6 points higher at 6,607.9, rallying from a low of 6,519.6, while the FTSE 250 index was also firmer, up 8.4 points at 11,527.6.

Volume was solid, with 3.733 bln shares changing hands in 569,072 deals.

"There was a jitter first thing in the morning based on the (suspect) car found, but it didn't shake the market too much," said Ben Timms from Blue Index CFDs.

This morning, police cordoned off part of central London after they defused what they called a "potentially viable explosive device" found in a car, and a press officer for the Metropolitan police confirmed another street's closure this afternoon.

Police are attending the vehicle and the road from Marble Arch to Hyde Park corner has been closed, with a 200 metre cordon in place, the spokesperson told Thomson Financial News.

On Wall Street, by London's close, the DJIA was 68 points higher at 13,490.2, with the Nasdaq composite index 13.22 points ahead at 2,621.59, as investors digested a spate of positive economic data.

Ahead of the bell the closely-watched personal income inflation report came out, which proved benign, followed by a government report showing consumers boosted spending in May as their incomes grew solidly.

The Commerce Department reported before the opening bell that consumer spending rose by 0.5 pct for the second month in a row. Incomes, the fuel for future spending, rebounded in May, growing by 0.4 pct. That was an improvement from the 0.2 pct drop reported for April.

This was followed by the release of the June Chicago area purchasing managers' index, which fell to 60.2 in June from May's surprisingly high 61.7, better than the expected June figure of 58.0.

In London, gains in mining heavyweights helped steady the blue chips, amid bullish commodity prices.

Antofagasta was 9-1/2 pence higher at 614, Anglo American was 39 pence firmer at 2,945, Vedanta Resources rose 21 pence to 1,615, Lonmin took on 51 pence to 4,020, and Rio Tinto moved up 46 pence to 3,827.

You've probably heard about spread betting - but maybe the risks have put you off. The Finspreads Trading Academy, the most popular way into the world of spread betting, takes you through the whole subject from a keen amateur's point of view. So don't be startled by spread betting - get started. Click Here

With SVS you can now trade CFDs from 12 international exchanges from just 0.15% commission (for all new accounts over £25,000). Whether you trade on an advisory or execution-only basis, the price is fixed: 0.15% commission.

Click here to open an account today and trade CFDs on 0.15%. Offer ends 30th June.

For a diary off key financial fand corporate events in the UK next week, click here

UK Small Cap Report

For a summmary of today's trading on the FTSE 250 and the AIM, click here

Madrid

Shares close higher after rebound from weak session; Gamesa up

Share prices closed at session highs, rebounding from a mostly negative session amid better-than-expected US economic ata, with Gamesa leading gains, while Cintra remained under pressure.

The IBEX-35 index closed up 72.1 points at 14,892.0, after trading in a range of 14,712-14,892, on turnover of 8.3 bln eur.

Equities opened a touch higher, following mostly expected cautionary remarks from the Federal Reserve on US inflation, after interest rates were left unchanged, but profit-taking soon set in ahead of the weekend and the end of the first half.

The IBEX-35 remained depressed through the rest of the session, before stronger than expected US data led to a positive start on Wall Street, and lifted Spanish markets in to the black.

Gamesa led the gainers, rising 0.49 eur to 27.00 after Lehman Brothers initiated coverage with 'overweight', and target of 33 eur, following the broker's trip to the American Wind Energy conference.

Metrovacesa also closed strong, up 1.90 or 2.37 pct to 82.00. Metrovacesa will be replaced by BME on the IBEX-35 index as of Monday.

BME slipped 0.06 to 16.81.

Cintra fell 0.07 to 11.80, extending losses after it lost out to NTTA for the Texas SH-121 toll motorway concession contract.

Amongst heavyweights, Telefonica rose 0.08 to 16.54, BBVA gained 0.05 to 18.20, while Santander was flat at 13.69.

Sacyr reversed earlier losses, rising 0.22 to 35.73, after the CEO Luis del Rivero insisted that the constructor has the financial muscle to pay for Eiffage.

Other main builders were on offer, with Acciona off 2.10 at 202.30, on profit taking after its outperformance yesterday and FCC 0.75 lower at 66.95.

Iberia dipped 0.05 to 3.70, after its board meeting yesterday failed to provide any fresh newsflow on the bid situation surrounding the carrier.

Utilities were mixed, with Union Fenosa adding 0.69 to 39.65, Endesa rose 0.04 to 40.21 and Iberdrola up 0.61 at 41.53, while Gas Natural slipped 0.02 to 45.13.

NBP Investments offers a unique investment opportunity, high returns are projected. Visit us today.

Click Here

German shares close higher for second day lifted by Wall Street gains

German shares closed higher for a second day, led by Adidas and tracking Wall Street, which received a boost from reports showing consumer and construction spending are gaining.

The DAX was 85.96 points or 1.09 pct higher at 8,007.32, having traded between 7,901.60 and 8,007.74.

The MDAX gained 61.35 points or 0.56 pct to 11,023.94, while the TecDAX was 8.59 points or 0.93 pct higher at 932.47.

DAX futures were up 79.00 points or 0.99 pct at 8,083.00, while bund futures slid 0.04 or 0.04 pct to 110.77.

The euro was trading at 1.3510 usd, against 1.3499 usd in midday London trade.

US consumer spending in May rose by 0.5 pct, the second monthly gain in a row, while incomes rebounded by 0.4 pct, painting a friendly picture for future spending power of shoppers in the world's biggest economy.

The University of Michigan's monthly index of consumer sentiment also spread optimism among investors as it slipped less than expected.

Construction spending jumped the most in nearly a year and a half, helped by government and commercial projects that offset week residential spending.

On the Frankfurt trading floor, Adidas led the blue-chip pack higher, gaining 1.27 eur or 2.79 pct to 46.78 eur.

BASF advanced 2.44 eur or 2.57 pct to 97.24 eur and Linde rose 1.25 eur or 1.42 pct to 89.25 eur.

Traders pointed to comments from Werner Wenning, the CEO of competitor Bayer AG, that the chemical sector is likely to grow strongly, which boosted the two stocks.

Traders also mentioned vague rumours that BASF may be eyeing Linde as a possible takeover target.

Deutsche Postbank, rose 1.07 eur or 1.67 pct to 65.07 eur as traders said rumours of a possible takeover from Commerzbank were perhaps making their rounds again.

Commerzbank was up 0.52 eur or 1.49 pct at 35.49 eur.

Volkswagen gained 1.45 eur or 1.24 pct to 118.10 eur after a report in the newspaper China Daily said that the automaker's Chinese joint venture FAW Volkswagen is expected to increase profits by 25 pct this year.

Deutsche Boerse added 1.63 eur or 1.98 pct to 83.75 eur, swinging back from earlier losses.

The biggest loser today was Infineon, one of only two declining stocks, which slid 0.01 eur or 0.08 pct to 12.31.

Hypo Real Estate declined 0.02 eur or 0.04 pct to 48.01 eur.

Over on the MDAX, Wincor Nixdorf was the top gainer, having jumped 2.65 eur or 4.01 pct to 68.80 eur.

Norddeutsche Affinerie rose 0.57 eur or 1.77 pct to 32.72 eur.

The company told the German financial watchdog BaFin that it suspects Commerzbank AG may have ignored a conflict of interest when it sold shares in the copper maker to A-TEC Industries AG, the Financial Times Deutschland reported.

IVG Immobilien added 0.32 eur or 1.12 pct to 28.93 eur after Morgan Stanley re-initiated coverage on the real estate specialist with an 'overweight' rating and a 34 eur per share price target.

Lanxess was 1.38 eur or 3.45 pct higher at 41.38 eur after the chemicals company said it is planning to shift its Lustran Polymers business unit into a global joint venture with British chemical group Ineos and will fully withdraw from this line of business in around two years.

Stada Arzneimittel gained 0.85 eur or 1.83 pct to 47.24 eur after its shares were reinitiated at 'overweight' by HSBC with a target of 58.00 eur per share. The broker sees higher margins and M&A speculation as share price drivers.

Gagfah slumped 0.42 eur or 2.53 pct to 16.15 eur, making it the worst performer on the index.

Over on the TecDAX, GPC Biotech gained 1.19 eur or 5.95 pct to 21.19 eur, while Epcos fell 0.41 eur or 2.74 pct to 14.53 eur.

Projected ROI of between 7-8% in this World renowned resort in St Lucia

Superb buy to let opportunity that allows you to enjoy the benefits of a holiday resort, with a share of room profits.  For more information click here.

Shares close slightly up in quiet trade led by Fortis, TomTom

Shares closed slightly higher after a very quiet day led by TomTom and Fortis, with Wall Street's positive opening pushing the AEX into positive territory late afternoon, trading sources said.

The AEX closed at the day's high, up 2.19 points or 0.40 pct at 548.21, after opening at 547.35 and reaching a low of 543.85.

Government bonds traded mainly lower and the euro stood at 1.3510 usd versus 1.3466 usd late yesterday.

Fortis led the AEX, advancing rapidly in late trade and ending 1.64 pct up at 31.53, after the bank said it will hold an EGM on August 6 to vote on its planned takeover of ABN Amro and the capital increase required.

TomTom rose 1.42 pct at 37.93 after a price target upgrade to 45 eur from 40 from Goldman Sachs. The brokerage reiterated its 'conviction buy' rating.

A few shares saw some volume, namely Royal Dutch Shell, putting on 1.27 pct to 30.19, and ING, 0.92 pct higher at 32.79 after the bank agreed to sell its Belgian Broker and Employee Benefits insurance business to P&V Verzekeringen for 750 mln eur, while ABN Amro went down 0.44 pct to 34.05 following Fortis' late afternoon news and Ahold lost 1.17 pct to 9.33, amid news the Polish competition authorities gave a conditional approval for Carrefour's 375 mln eur acquisition of Ahold Polska.

Among other oils, SBM Offshore added 0.92 pct at 28.30 and midcapper Fugro was up 0.58 pct to 47.05.

Other gainers on the AEX included TNT, 0.94 pct higher to 33.43, Reed Elsevier, lifting 1.22 pct to 14.14 and Numico, up 1.16 pct to 38.53.

Aalberts led AMX gainers, putting on 3.40 pct to 20.35, with USG People following suit, rising 1.96 pct to 34.90.

Vopak went 1.15 pct higher to 42.20 after the company said it will expand its Teesside terminal at Seal Sands in the UK to store and handle bio-ethanol on behalf of Ensus Limited.

Among local issues, Draka Holding outperformed the market, soaring 10.67 pct to 37.74 eur after it said in a trading update that it expects its operating result and net profit to double in the first half year, and after an upgrade to 'buy' at Rabo Securities.

Unibail-Rodamco, set to be de-listed in Amsterdam some time after July 10, led AEX decliners, sliding 2.48 pct to 189.67 eur.

Hagemeyer fell 0.78 pct to 3.83.

DSM was off 0.68 pct at 36.55 after Petercam reiterated its 'hold' rating but upped its price target to 37.70 eur from 36.

Midcapper LogicaCMG was down 0.88 pct to 2.25, Ordina fell 0.65 pct to 15.40 and Van der Moolen shed 1.33 pct to 3.72.

£105,000 profit! spread betting UK shares with the Intelli-Trend system!
Click Here to find out more.

ADVFN Services