U.K. stocks rose to the highest level since April after minutes from last month’s Federal Reserve meeting showed U.S. policy makers are prepared to pump more cash into the economy to protect the recovery.
Fresnillo Plc climbed 2.7 percent as the world’s largest primary silver producer said output rose to a record in the third quarter. ARM Holdings Plc rallied 1.9 percent after Intel Corp.’s forecast for fourth-quarter sales topped analysts’ estimates. Standard Chartered Plc lost 2.4 percent after the bank said it plans to raise about 3.3 billion pounds ($5.2 billion) in a rights offer.
The benchmark FTSE 100 Index gained 76.78, or 1.4 percent, to 5,738.37 at 12:58 p.m. in London, on course for the highest close since April 26. The FTSE All-Share Index rose 1.3 percent and Ireland’s ISEQ Index climbed 0.6 percent.
The FTSE 100 has climbed 18 percent since the start of July amid speculation the Fed will next month announce plans to stimulate economic growth as the recovery wanes. The Fed minutes published yesterday showed policy makers “wanted to consider further the most effective framework for calibrating and communicating any additional steps to provide such stimulus.”
“Clearly the U.S. economy with its very high levels of debt needs as much quantitative easing to get it going again,” Andreas Utermann, the chief investment officer at the RCM unit of Allianz Global Investors, which manages about $1.1 trillion, said on Bloomberg Television’s Countdown with Francine Lacqua. “I’m probably slightly more bullish on equities than I was six months ago.”
Fresnillo Gains
Fresnillo rose 2.7 percent to 1,275 pence as output climbed to a record in the third quarter and the company said it expects to “slightly beat” its full-year output forecasts for gold and silver. Rival mining companies Xstrata Plc and Anglo American Plc surged 4.3 percent to 1,298.5 pence and 4.2 percent to 2,850 pence, respectively.
Copper rose to a 27-month high on prospects for increased consumption of the metal from China. Reports today showed China’s foreign-exchange reserves increased by a record to $2.65 trillion at the end of September while a 25 percent jump in exports lifted its trade surplus to $16.9 billion.
ARM, the U.K. designer of chips that power Apple Inc.’s iPhone, gained 1.9 percent to 383 pence. Intel said revenue this period will be $11.4 billion, plus or minus $400 million. That compares with an average projection of $11.3 billion, according to data compiled by Bloomberg.
StanChart Rights Offer
Standard Chartered declined 2.4 percent to 1,862 after saying investors will be offered one new share at 1,280 pence for every eight they already own. Lenders are raising surplus capital as their regulators weigh whether to force the largest banks to hold more capital than the minimum level agreed by international regulators in Basel last month.
Barclays Plc, the U.K.’s third-biggest bank, dropped 1.3 percent to 290.9 pence.
The question now “is quite simply whether the Standard Chartered move is going to be the thin end of the wedge,” said Richard Hunter, the London-based head of U.K. equities at the stockbroker Hargreaves Lansdown Plc. “Barclays is potentially being seen as the next one that might need to make a similar announcement to improve their capital buffer.”
In the U.S., JPMorgan Chase & Co. became the first U.S. bank to report third-quarter results. The lender reported third- quarter profit of $1.01 a share, beating the 88-cent average estimate of analysts surveyed by Bloomberg.
Petrofac, Bodycote
Petrofac Plc gained 4.1 percent to 1,472 pence as Morgan Stanley raised its recommendation for the oilfield-services provider to “overweight” from “equal weight” and the U.S. government lifted its ban on deep-water drilling ahead of schedule.
Bodycote Plc rallied 11 percent to 306.3 pence. The supplier of metal-strengthening services said sales in the remainder of the financial year should be stable and it expects annual operating profit at the upper end of the range of analysts’ forecasts.
Hammerson Plc climbed 2.9 percent to 427.1 pence. Goldman Sachs Group Inc. raised its recommendation for the real estate investment trust to “conviction buy” from “neutral.”
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Fresnillo Plc climbed 2.7 percent as the world’s largest primary silver producer said output rose to a record in the third quarter. ARM Holdings Plc rallied 1.9 percent after Intel Corp.’s forecast for fourth-quarter sales topped analysts’ estimates. Standard Chartered Plc lost 2.4 percent after the bank said it plans to raise about 3.3 billion pounds ($5.2 billion) in a rights offer.
The benchmark FTSE 100 Index gained 76.78, or 1.4 percent, to 5,738.37 at 12:58 p.m. in London, on course for the highest close since April 26. The FTSE All-Share Index rose 1.3 percent and Ireland’s ISEQ Index climbed 0.6 percent.
The FTSE 100 has climbed 18 percent since the start of July amid speculation the Fed will next month announce plans to stimulate economic growth as the recovery wanes. The Fed minutes published yesterday showed policy makers “wanted to consider further the most effective framework for calibrating and communicating any additional steps to provide such stimulus.”
“Clearly the U.S. economy with its very high levels of debt needs as much quantitative easing to get it going again,” Andreas Utermann, the chief investment officer at the RCM unit of Allianz Global Investors, which manages about $1.1 trillion, said on Bloomberg Television’s Countdown with Francine Lacqua. “I’m probably slightly more bullish on equities than I was six months ago.”
Fresnillo Gains
Fresnillo rose 2.7 percent to 1,275 pence as output climbed to a record in the third quarter and the company said it expects to “slightly beat” its full-year output forecasts for gold and silver. Rival mining companies Xstrata Plc and Anglo American Plc surged 4.3 percent to 1,298.5 pence and 4.2 percent to 2,850 pence, respectively.
Copper rose to a 27-month high on prospects for increased consumption of the metal from China. Reports today showed China’s foreign-exchange reserves increased by a record to $2.65 trillion at the end of September while a 25 percent jump in exports lifted its trade surplus to $16.9 billion.
ARM, the U.K. designer of chips that power Apple Inc.’s iPhone, gained 1.9 percent to 383 pence. Intel said revenue this period will be $11.4 billion, plus or minus $400 million. That compares with an average projection of $11.3 billion, according to data compiled by Bloomberg.
StanChart Rights Offer
Standard Chartered declined 2.4 percent to 1,862 after saying investors will be offered one new share at 1,280 pence for every eight they already own. Lenders are raising surplus capital as their regulators weigh whether to force the largest banks to hold more capital than the minimum level agreed by international regulators in Basel last month.
Barclays Plc, the U.K.’s third-biggest bank, dropped 1.3 percent to 290.9 pence.
The question now “is quite simply whether the Standard Chartered move is going to be the thin end of the wedge,” said Richard Hunter, the London-based head of U.K. equities at the stockbroker Hargreaves Lansdown Plc. “Barclays is potentially being seen as the next one that might need to make a similar announcement to improve their capital buffer.”
In the U.S., JPMorgan Chase & Co. became the first U.S. bank to report third-quarter results. The lender reported third- quarter profit of $1.01 a share, beating the 88-cent average estimate of analysts surveyed by Bloomberg.
Petrofac, Bodycote
Petrofac Plc gained 4.1 percent to 1,472 pence as Morgan Stanley raised its recommendation for the oilfield-services provider to “overweight” from “equal weight” and the U.S. government lifted its ban on deep-water drilling ahead of schedule.
Bodycote Plc rallied 11 percent to 306.3 pence. The supplier of metal-strengthening services said sales in the remainder of the financial year should be stable and it expects annual operating profit at the upper end of the range of analysts’ forecasts.
Hammerson Plc climbed 2.9 percent to 427.1 pence. Goldman Sachs Group Inc. raised its recommendation for the real estate investment trust to “conviction buy” from “neutral.”
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