MARKET UPDATE – GOOD EARNINGS FROM THE HEAVY MOB UNDERPINS POSITIVE SENTIMENT

At the time of writing the sun is high on the yardarm; wickets are tumbling at Edgbaston; no one really believes that Chairman Yellen is going to be given the opportunity of putting rates any more than just in a perfunctory or symbolic manner. The quality of earnings, which hit the wires in a tsunami manner, was on the whole more than satisfactory. The FTSE 100 was up 35 points at 6670 at 4.00pm. The big cap stocks led the charge with Shell up all but 5%, dragging BG up 4% and BP up by 1%. Investors did not share the same level of enthusiasm for Centrica – down 3%, on news that 4000 people most of them in the UK would lose their employment.

 

Astra Zeneca posted good results and an encouraging pipeline for new drugs – +3%. Smith & Nephew also responded positively – up 1.5%. Thos Cook, despite discouraging news on Tunisia and Greece which could cost the travel agent £25million, were flat at the time of writing Diageo underwhelmed its acolytes (-1.5%), as did BT (-1%). Investors need convincing that BT is going to make a real success of its sortie in to sport. RBS was up 4% early door, but fell be down 2.5% when the street realised that this beleaguered banks was years away from coming out of the House of Bondage. Even CEO Ross McEwan felt that impairment provisions could be there for years to come. As for Merlin Entertainment, it saw its share price just drift below the Plimsoll line by 0.7% to 414.20p. There was no really upbeat news on Alton Towers.

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