UK/Euro Financial Market Daily Evening Briefing 30-11-2007

FREE Guaranteed Stop Loss.  Start spreadbetting with Spreadex. Click here for terms and conditions. www.spreadex.com/freestop

London shares close higher; banks, miners up; Wall Street stronger
 
At the close, the FTSE 100 index was up 83.4 points at 6,432.5, off the session high of 6,455.8, and recovering from a low of 6,334. The FTSE 250 index rose 84.1 points to close at 10,748.8.
   
As the London markets were closing, the Dow Jones Industrial Average was up about 50 points at 13,361, though it had been up as much as 155 points earlier, after a speech by Federal Reserve Chairman Ben Bernanke late yesterday bolstered the view that interest rates are set to fall further.
   
The S&P index was up 10.86 at 1,480.58.  Paul Webb, chief dealer at CMC Markets, said: "Overall sentiment remains buoyant as speculation of a quick rate cut across the Atlantic is pushing investors into equities, while more specifically the prospect of consolidation in the mining industry is cheering many in the sector and not least Vedanta".
   
Volume was average, with 2.92 bln shares changing hands in 880,004 deals. The FTSE 100 gained 170.4 points, or 2.7 pct on the week but lost 289 points, or 4.3 pct, in the month of November. Among UK equities today, the oil sector was a major winner, despite crude prices falling below 90 usd a barrel. Oil fell to a one-month low as the prospect of an OPEC production hike and easing concerns about the impact of a pipeline explosion in the US triggered technical selling.
   
Brent crude for January delivery was recently trading down 1.73 usd at 88.49 usd a barrel. However, Italy's ENI buoyed the sector, by buying midcap Burren Energy for 1.74 bln stg. The 1,230 pence-a-share cash recommended bid comes after Burren rejected previous offers of 1,050 and 1,200 pence. 
   
Burren shares closed 107 pence higher at 1,249. The move also bolstered other exploration & production stocks, such as FTSE 100 constituent Tullow Oil, which ended the day up 35-1/2 at 671, an all-time high.
 Midcaps that gained include Cairn Energy, up 37 at 2,349; Dana Petroleum, up 23 at 1,325. Oil services company Wellstream Holdings rose 96, or 10.1 pct, to close at a record 1,047.
   
Back in the FTSE 100, the miners have again been driving the market higher.  Anglo American closed 132 higher at 3,286 amid talk that it will somehow be involved in the BHP Billiton - Rio Tinto saga. Vedanta Resources, boosted by yesterday's rumours it is set to be subject to a 2,500 pence bid, was up 112 pence, or 5 pct, at 2,304. It had been up as much as 8 pct earlier. 
   
As well as merger speculation, higher prices for copper and other metals are helping.  Elsewhere, a broker provided the impetus for shares in Sage Group up 5 at 215-3/4, with Morgan Stanley lifting its stance to 'overweight' from 'equal-weight' while giving it a 255 pence target, saying the company is its
favoured UK software/services firm.

Your worst-case outcome - a positive 15% in 3 years
Your best case - Triple-digit returns
"It’s four times profit. It’s better than the stock market" Bill Gross, Bond Manager
Click here to sign up to our FREE Investment Newsletter for exclusive tips and market advice.

The broker said several positive factors outweigh the risks surrounding the group's US reorganisation, namely the fact it is defensive and cheap, that it has shown sustained strength in the UK home market and Europe, and that management is confident -- exhibited by a 95 pct dividend increase.
   
Good gains were also seen among banks, with Keith Bowman from Hargreaves Landsdown suggesting that sentiment has been lifted by yesterday's reassuring updates from Alliance & Leicester and Bradford & Bingley. Royal Bank of Scotland climbed 15-3/4 pence to close at 459, while Barclays rose 23 pence to 563. 
   
Shares in Alliance & Leicester added to yesterday's gains, up another 44 to close at 730, despite Bear Stearns lowering its rating to 'underperform' from 'peer perform', saying UK mortgage industry metrics are consistently negative and corporate momentum is slowing. It also said that A&L shares may struggle
against this bleak outlook.
   
A&L shares have now gained more than 20 pct in the last three days. It was just pipped for the top riser spot by Standard Chartered, up 118, or 6.6 pct,  at 1,914.  And even Northern Rock reversed earlier losses to close 1.3 higher at 118, despite Sky News reporting that JC Flowers has threatened to withdraw its
proposal if the Treasury refuses to meet its representatives.
   
Insurers also benefited from the improved outlook for financial shares, with Prudential up 21-1/2 at 679, and Standard Life, up 12-1/4 at 262-1/2.  Moving to the downside, Mitchells & Butlers dropped 8-1/2 to 577, with ABN Amro doubtful over its ability to achieve a property deal with R20 in the context of current debt market conditions. ABN Amro downgraded the shares to 'hold' from 'buy'.
   
A broker downgrade also hindered BSkyB, which fell 9-1/2 to 625, with Goldman Sachs cutting its stance to 'sell' from 'neutral' and its price target to 600 pence from 720. And there was no respite for B&Q owner Kingfisher, down another 5.4 to close at 152.3, the biggest FTSE 100 loser, following yesterday's third-quarter results.
  
Back on the second line, M&A rumours helped send Colt Telecom up 27-3/4 pence, or 18 pct, to 182-1/4.
A report in today's Guardian said Colt's 15-year independence looks to be coming to an end, as its major shareholder Fidelity tries to persuade a rival American telecoms firm to stump up 300p a share.
   
But Colt said it knew of no reason for the shares to have risen.  Full-year numbers helped Marston's add 12-1/2 to 336. This morning, the Pubs group turned in a pretax profit of 94.7 mln stg for the year to Sept 29 2007, down from 101.5 mln a year earlier, on revenues of 652.8 mln compared with 595.9 mln.

A world first for providing investors with access to a different part of the commodities futures curve ETCs are simple and transparent securities that enable investors to gain exposure to commodities and can be bought or sold on regulated stock exchanges. Trade like ordinary shares. Click here

London Stock Exchange was up 10 at 1,780. It will move into the FTSE 100 on Tuesday when Invesco, down 13 at 627-1/2 moves its listing to the NYSE.
   
On the downside, IT recruiter SThree gave up early gains to close 4-3/4 lower at 195-3/4 after Panmure Gordon cut its rating to 'hold' from 'buy', and slashed its target to 218, from 360. In a full-year trading statement today, SThree said profit would be up 31 pct on last year, and that it would begin a share buyback programme.
    
The company is set to lose its place in the FTSE 250 in the reshuffle next month. Unlike Michael Page, which ended the day 17-1/4 higher at 326-3/4, SThree seemed to derive no benefit from today's announcement that Randstad Holding is in talks about a takeover of fellow Netherlands-based recruiter Vedior. 
   
And finally, among midcap casualties a broker downgrade helped send RPS Group shares lower, off 22-3/4 pence to close at 302, with Citigroup downgrading its rating on the environmental consultancy services company to 'sell' from 'hold' and cutting its price target to 300 pence from 365.
   
The broker said that, according to its estimates, RPS is the second-most expensive share in its peer group but offers only average growth. In UK economics news, consumer confidence fell to its lowest level for nearly five years during November as soaring petrol prices and the prospect of higher mortgage costs took their toll.
   
In its monthly survey, Gfk/NOP said its headline consumer confidence index fell to -10 from -8 in October. This was below analyst expectations for -9 and is the lowest reading since March 2003.

UK Diary of Events:

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

UK Small Cap Report:

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

Do you fancy trading commodities using the benefits of leverage, but without expiration dates and with a minimised risk?  If the answer is yes, then speak to CA Trading.

CA Trading can offer an execution service, or you could speak to one of their account executives. To find out more, call 02071903320 or click here

Milan shares close higher, led by constructors, banks

The Mibtel index rose 1.01 pct to 29,837 points and the S&P/Mib gained 0.97 pct to 38,975. Volume traded was an estimated 6.243 bln eur. Brokers said speculation of a US interest rate cut continues to support shares, with latest US economic data not contradicting this speculation.
   
One broker said it being the last day of the month was another positive factor, with investors looking to boost month-end valuations. In the construction sector, Impregilo was up 3.85 pct to 4.51 eur. Italcementi rose 1.28 pct to 14.16 and Buzzi Unicem was up 1.82 pct to 18.95.
   
Atlantia rose 2.65 pct to 25.97, which brokers said was a rebound after recent weakness on latest regulatory queries on tariffs. However, they added the size of the bounce was unjustifiably large. Among banks, Unicredit gained 2.48 pct to 5.825. Intesa Sanpaolo rose 1.23 pct to 5.45. BMPS added 0.05 pct to 3.825. BPM was up 2.01 pct to 9.905.
   
In the insurance sector, Unipol rose 2.36 pct to 2.65, buoyed by prospects of an extraordinary dividend decision shortly. Generali fell 0.13 pct to 31.35. Energies were in focus, including on developments at the Italy/France summit meeting in Nice where Enel signed an agreement with EDF on cooperation and access to EDF capacity in France.
   
Enel was up 0.31 pct to 8.19. Brokers said the content of the Enel deal was widely discounted and welcome all the same after three years of talks. One broker said the deal is tipped in Enel's favour. Terna was up 0.08 pct to 2.675. The grid operator reached a deal on expanding interconnections with its French counterpart.
   
Eni gained 1.25 pct to 24.37. The company announced an agreed deal with the UK's Burren Energy. The 1,230 pence sterling price is in line with the 1,200-1,300 deemed acceptable by analysts. One broker said Burren will add further production for Eni, offsetting ongoing demands from the Kazakh government on the Kashagan field.
   
Saipem was down 2.10 pct to 27.50, reacting to the oil price fall. sAlitalia lost 0.72 pct to 0.818. Italy's prime minister Romano Prodi said Air France-KLM is one of three candidates to take control of the airline.
Telecom Italia rose 0.49 pct to 2.1725. One broker said likely new management has political support with new CEO Franco Bernabe seen closely allied to Prodi.
   
Gemina ended down 2.08 pct to 1.411, off its lows, after being suspended during the morning ahead of a statement on a S&P credit rating downgrade at its Aeroporti di Roma unit.

 was up 1.82 pct to 18.95.
   
Atlantia rose 2.65 pct to 25.97, which brokers said was a rebound after recent weakness on latest regulatory queries on tariffs. However, they added the size of the bounce was unjustifiably large. Among banks, Unicredit gained 2.48 pct to 5.825. Intesa Sanpaolo rose 1.23 pct to 5.45. BMPS added 0.05 pct to 3.825. BPM was up 2.01 pct to 9.905.
   
In the insurance sector, Unipol rose 2.36 pct to 2.65, buoyed by prospects of an extraordinary dividend decision shortly. Generali fell 0.13 pct to 31.35. Energies were in focus, including on developments at the Italy/France summit meeting in Nice where Enel signed an agreement with EDF on cooperation and access to EDF capacity in France.
   
Enel was up 0.31 pct to 8.19. Brokers said the content of the Enel deal was widely discounted and welcome all the same after three years of talks. One broker said the deal is tipped in Enel's favour. Terna was up 0.08 pct to 2.675. The grid operator reached a deal on expanding interconnections with its French counterpart.
   
Eni gained 1.25 pct to 24.37. The company announced an agreed deal with the UK's Burren Energy. The 1,230 pence sterling price is in line with the 1,200-1,300 deemed acceptable by analysts. One broker said Burren will add further production for Eni, offsetting ongoing demands from the Kazakh government on the Kashagan field.
   
Saipem was down 2.10 pct to 27.50, reacting to the oil price fall. sAlitalia lost 0.72 pct to 0.818. Italy's prime minister Romano Prodi said Air France-KLM is one of three candidates to take control of the airline.
Telecom Italia rose 0.49 pct to 2.1725. One broker said likely new management has political support with new CEO Franco Bernabe seen closely allied to Prodi.
   
Gemina ended down 2.08 pct to 1.411, off its lows, after being suspended during the morning ahead of a statement on a S&P credit rating downgrade at its Aeroporti di Roma unit.

Don't miss this amazing FREE seminar. Succeed Massively trading Fixed Odds with Matt Shaw, Alan Rich and Mike Wright. Free entry, Wed 5th Dec, 6.45pm Holiday Inn, Kensington.  Click here to register now

German shares close higher led by Deutsche Boerse, Commerzbank

The DAX ended up 105.33 points or 1.36 pct at 2870.52 after trading between a high of 7894.47 and a low of 7771.77. The MDAX gained was at 9865.49, up 149.25 points or 1.54 pct while the TecDAX was up 19.44 points or 2.04 pct at 970.22.
   
DAX futures were up 110.00 or 1.41 pct at 7901.50 while bund futures were off 0.58 or 0.50 pct at 114.32. The euro was trading at 1.4696 usd compared with 1.4697 in late afternoon trade in London. Deutsche Boerse rose 6.67 eur or 5.49 pct at 128.22, making it the best performer on the blue chip board.
   
Financial stocks were also among the major winners, led by Commerzbank, up 1.13 or 4.35 pct at 27.10. Hypo Real Estate was up 0.66 at 36.23 while Deutsche Bank gained 1.43 at 89.79. Metro, down 1.25 or 1.98 pct at 61.79, was the biggest loser, followed by RWE, down 0.03 or 0.03 pct at 93.38. These two stocks were the only one in negative terrain on the DAX30.
   
Dealers said Metro's fall could be attributed to the disappointing retail sales figures released by the German statistics office for the whole industry. The German statistics office announced that retail sales declined 3.3 pct in real terms in October compared with September. Markets had been looking for only a modest decline in sales in October.
   
ThyssenKrupp was up 1.63 pct at 4.22 pct at 40.30 ahead of next Tuesday's publication of its full year results to Sept 30, 2007. Analysts said the company's net profit is expected to have grown 27.81 pct to 2.18 bln eur on the back of significantly higher steel prices.
   
Deutsche Post was higher 0.48 or 2.11 pct at 23.21, continuing to profit from a German government announcement yesterday that it has decided to expand its minimum wage agreement to the whole postal industry, narrowing cost advantages of rivals.
   
Infineon gained 0.22 eur or 2.75 pct to 8.23 after UBS initiated coverage of the chip maker with a 'buy' recommendation and a price target of 10.4 eur. It said its unit Qimonda will exit production of 200 millimetre wafers at its Dresden site from March 1.
   
On the MDAX, K+S rose 9.96 or 7.70 pct at 139.28 while Hochtief fell 2.81 or 3.02 pct at 90.19. IKB Deutsche Industriebank AG added 0.51 or 6.42 pct at 8.46. German finance minister Peer Steinbrueck said the government will sell its 38 pct shares in IKB as quickly as possible but also only for a "good" price. Conergy was up 2.28 or 8.87 pct at 72.98 while Versatel lost 0.73 or 3.26 pct at 21.63.

..from an award winning developer.  High demand for apartments within a 30 minute commute of central London make this new off-plan development an exceptional opportunity. Just 5% initial investment required!  For more information click here.

Amsterdam shares close near highs on positive Wall St; Vedior soars

The AEX closed up 5.67 points or 1.13 pct at 507.58 after opening at 502.85 and reaching a midafternoon high of 509.87. Government bonds traded higher while the euro stood at 1.4698 versus 1.4770 usd late yesterday.
  
ING said it looks likely the Federal Reserve will cut its policy interest rate but unlikely the ECB and Bank of England will follow down the same easing path.
   
Vedior provided the news of the day, soaring 38.21 pct to 17.0 after the company confirmed it was in friendly talks with Randstad. Randstad closed down 0.58 pct to 32.48 on fears the company will have to fund the potential takeover by putting out a share issue. Midcapper USG People surged 10.10 pct to 18.75 in the wake of the takeover news.
   
TomTom rose 4.26 pct to 64.80. TNT put on 4.21 pct to 27.99 eur amid news of a trade union agreement in
Germany which would allow the coalition government to set a minimum wage in the postal sector. Among tech-related issues, ASML added 2.95 pct at 23.73 and Philips put on 1.49 pct to 28.66 after UBS initiated the stock at 'buy', with a 34 eur per share target.
   
ING strengthened 1.26 pct to 26.51 while fellow financial Aegon added 1.67 pct at 12.21. Fortis meanwhile turned down 1.13 pct to 18.30 eur after the banking group said it intends to offer up to 2.5 bln eur in convertible securities to help finance its acquisition of ABN Amro assets.
   
Among chemicals and Pharma related issues, Akzo Nobel rose 1.55 pct to 52.40 and DSM advanced 0.47 pct to 34.01 after Crucell said it had contacted the company for the process validation and manufacturing of rabies antibody batches for phase III clinical efficacy studies. Crucell jumped 5.42 pct to 12.77 after the company said the results of the second clinical evaluation of its rabies monoclonal antibody cocktail were positive, enabling the prompt progression towards phase II studies.
   
ArcelorMittal gained 1.55 pct to 50.41 eur after the company said it plans to double capacity at its integrated long products Monlevade plant in Brazil's Minas Gerais State. Among oils, SBM Offshore put on 0.64 pct at 23.76, Royal Dutch Shell went 0.84 pct higher to 27.57 and Fugro closed up 4.44 pct to 56.19.
   
Local issue Kardan edged 0.31 pct higher to 13.51, after the company came out with strong third-quarter sales. Among AEX decliners, Corporate Express fell 1.30 pct to 6.06 eur after initially rising on news the company is buying Denmark's Moller & Landschultz.
   
Unibail-Rodamco slid 1.22 pct to 153.63, Unilever shed 0.17 pct to 24.14 and Hagemeyer slid 0.43 pct to 4.66. On the midcap, BAM lost 0.55 pct to 16.36 amid news that the company has won an order to build 400 sustainably-warmed homes in The Netherlands. CSM was off 0.29 pct to 24.13, Wessanen went 0.54 pct lower to 11.14 and Stork was down 0.06 pct to 47.76.

Closing Forex Rates

ADVFN Services