There is no doubt that equities have been oversold here in the UK in recent sessions. The quality of earnings in the US has been decent with BOA coming up with the goods today. FED chairman Janet Yellen has failed to rattle the market’s cage in her 2nd day of testimony to Congress. So the Street of Dreams seems very comfortable in its own skin.

The UK’s economic data posted today was OK with a 6.5% unemployment rate. At 3.50pm the FTSE 100 had added 70 points at 6780. Mining stocks were on a roll thanks to Rio’s production numbers and an encouraging 2nd quarter GDP number of 7.5% from China – probably fudged! Rio, Anglo and Glencore were all 3% to the good. BOA’s numbers drove Barclays up by 2.5%. Insurance stocks were on good terms with themselves with the Pru and Aviva both up by 2%. British Land pleased its acolytes – up 1%. ITV leapt out of the pack adding 3.8% on the back of amorous overtures by Fox in the direction of Time Warner. The only blip was SHIRE – down 1.7% thanks to supposedly Obama inspired gossip that any future tax inversion M&A activity would be discouraged.

I am glad for the ‘ancient and the young’ that they have enjoyed a decent day in terms of increased value. However those that trade for their living will be pulling what little hair they have left out at the low level of volumes, which currently prevail.

These are David Buik personal views

Twitter – @truemagic68

David Buik

Market Commentator

D +44 (0)20 7886 2775
Panmure Gordon & Co
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