MARKET UPDATE

Just toward the end of the auction at 4.30pm in London the FTSE 100 was down 46 points at 6340. It was a mucky sort of a session. There was that feeling that the earnings season was going to disappoint even though both BP and St James’s Place beat expectations. The kissing stopped on Friday night and a dose of reality was trying to set in. Markets were starting to look fully valued at present. Markets in the US as we head towards lunch are down between 0.24% and 0.35% and lack enthusiasm for the fray. I feel they are looking a little uncomfortable. Mining stocks eased between 2.5% and 4% and oil stocks were down 2%. BP added 2% at the opening, but as the sector came under pressure, BP surrendered value and closed down 1%, despite the presentation of a decent business plan with oil priced at $60 a barrel in 2 years.

 

St James’s Place with a 20% increase in funds under management added just 1%. Bloomsbury on the back of JK Rowling and cook books started brightly but eased down 0.5% by the close. TalkTalk, the telecom and internet operator, in response to a 15-year old youth being indicted for cyber-hacking, saw its shares rally by 13% on the day. Shire Pharmaceutical was a stand-out stock adding 7% on good news re drug regulation. Equiniti made a very inauspicious debut (IPO) and was down 13.5% at 151p (issue price 175p) at the close

 

3rd quarter GDP was worse than expected – +0.5% – 2.3% on an annualised basis. 0.6% was expected and manufacturing output fell by 0.35 and building and construction by 2.2%. That did not help the slightly negative mood which prevailed in London. The Pound dipped a tad to $1.5309. There is little positive data out there that could persuade most people that we need a rate hike on either side of the Pond before the New Year.

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