The FTSE 100 is poised for a flat started after tacking on 0.7% yesterday. The markets in both the US and Europe were in buying mode after US new home sales data showed an increase of 330,000 in June. This offset a 0.1% drop in house prices in the UK reported earlier in the day and a decline in the Chicago Fed index.
Financial Times publisher Pearson (LON:PSON) led the blue chips with a 6% gain. Oil and gas producer Tullow Oil (LON:TLW) followed, climbing 5% after making an oil discovery in Ghana. BP (LON:BP) and banking group Barclays (LON:BARC) added 4.5%. Part-nationalised bank Lloyds (LON:LLOY) and hedge fund manager Man Group (LON:EMG) tacked on nearly 4%. Royal Bank of Scotland (LON:RBS) and specialist banking group Investec (LON:INVP) rose 3%.
African Barrick Gold (LON:ABG) was at the bottom of the pile with a 4% loss. Silver miner Fresnillo (LON:FRES) and chipmaker ARM Holdings (LON:ARM) slid 2.5% and 2% respectively. Medical device company Smith & Nephew (LON:SN) and gold producer Randgold Resources (LON:RRS) shed nearly 2%. Oil and gas producer BG Group (LON:BG) and defence contractor Cobham (LON:COB) dropped 1.4%.
US stocks were on the rise yesterday. The Dow Jones Industrial Average rose 1%, the broader S&P 500 index advanced 1.1% and the technology heavy NASDAQ composite climbed 1.2%.
Asian markets were looking for a direction this morning. Hong Kong’s Hang Seng, South Korea’s KOSPI and Japan’s benchmark Nikkei 225 were flat, China’s Shanghai Composite Index declined 0.5% and Australia’s S&P/ASX 200 rose 0.25%.
Commodities
Oil prices were slightly lower. US light, sweet crude for September delivery slid to US$78.86/barrel, while September Brent Crude declined to US$77.39/barrel.
Precious metals headed in different directions. Gold improved to US$1,185/oz and platinum rose to US$1,554/oz, while silver declined to US$18.14/oz.
Base metals didn’t show much movement. Copper and zinc held steady at US$3.20/lb and US$0.86/lb respectively, while nickel climbed to US$9.39/lb.
Consumer confidence data is due out in the US today. Battered oil and gas supermajor BP (LON:BP) will release its quarterly and interim results today.