15:00Shares in London remain in positive territory despite an earlier dip over fears the US Federal Reserve may be preparing to ease its quantitative easing programme sooner than anticipated. More... AIM market chief Marcus Stuttard urges growing companies to issue shares GLOBAL MARKETS: Track the latest trends here Market report brought to you in association with Killik & Co. For market advice check out killik.com The Dow Jones Industrial Average has fallen 0.10 per cent, or 15 points, to 15 399.05 an hour after trading began in the US as investors take a breather after the major indices finished higher for the fourth straight week in a row. The FTSE 100 was 0.11 per cent higher at 6730.5, close to a previous closing high of 6732.40 seen in July 2007 and at levels not seen since October 2007 helped by Germany's leading share index, the Dax hitting, a new record high.
Ishaq Siddiqi, market strategist at ETX Capital Markets said: 'The FTSE100 is nicely above the 6700 level, earlier reaching highs not seen since October 2007. Germany’s DAX and France’s CAC40 markets are open despite it being a holiday there and both markets are in the black too.
'Stock markets though are quiet on the whole, maintaining a bullish bias thanks to the deal news in the form of Yahoo buying Tumblr but at the same time, waiting for this week’s key economic data events for further clues over the state of the global economy.'
The US Dollar will remain in focus as the attention turns to Fed chairman Bernanke’s testimony to the US Congress and the latest Fed meeting minutes on Wednesday when investors will look for any indication that the Fed may be preparing to taper its quantitative easing policy.
Meanwhile, Gold has fallen again today, continuing its downward spiral from last week as investors sold precious metals to cover forex losses on the back of a stronger yen which rose after an optimistic government forecast for the Japanese economy.
Miners have been a drag on the FTSE. Fresnillo, Rangold Resources, Anglo Gold and Anglo Platinum shares today have all fallen following news of wage hike demands in South Africa and a sharp fall in gold futures.
12:00 London's top flight index have clung on to recent gains today despite more pressure on mining stocks as the price of gold continues to fall.The FTSE 100 Index is just 5.2 points lower at 6717.9 and remains within sight of its highest close since the 6730 achieved in June 2007. It is also just over 200 points off the FTSE 100's all-time best set in 1999.Wall Street markets set new records on Friday after an index tracking leading economic indicators rose 0.6 per cent last month, while the Nikkei in Japan was up to a new five-year high on the back of improved official economic forecasts.In London, hopes of another session of progress for the top flight have been offset by losses in the heavily-weighted mining sector. Gold's longest slump in price since the financial crisis and a further fall in silver have been reflected in a number of share prices, with Fresnillo off 4 per cent, or 44.5p, to 1024.5p and Randgold Resources down 101p to 4656p. Bullion has lost its appeal as the US dollar rises on expectations policymakers will bring the curtain down on the country's quantitative easing programme as economic fortunes improve. Gold has fallen for eight sessions in a row and now stands at around 1.353 dollars an ounce. FTSE 100 newcomer easyJet is again at the top of the risers board as investors take encouragement from the performance of Ryanair in the face of tough economic conditions. The Dublin-based rival reported a 13 per cent rise in post-tax profits this morning and said it expected further growth in the current year. EasyJet shares, which have already risen by more than 50 per cent this year, are up by 44p to 1232p. Other risers include United Utilities after an upgrade of the sector by Goldman Sachs and recent excitement surrounding the overseas bid interest in rival Severn Trent. United shares are 12.75p higher at 777.75p and Severn Trent has added 2p to 2052p, while South West Water owner Pennon is higher by 14.5p to 714p in the FTSE 250 Index. Meanwhile, shares in rail and bus operator FirstGroup have dived by 19 per cent after it announced plans to raise £615million from shareholders in a rights issue and said it would axe its dividend for the next year. The company, which is planning to pour £1.6billion into a four-year investment programme, is looking to tackle debts of nearly £2billion and the fall-out from the botched bidding process for the West Coat mainline. Shares were 43.4p lower at 180.4p. 10:30 amThere has been no stopping the rise in London shares today after more encouraging data from the United States and Asia boosted investor confidence.
The FTSE 100 Index climbed by 11.3 points to 6734.3 and is on track to better the close of trading peak of 6730 recorded in June 2007.
Wall Street markets set new records on Friday after an index tracking leading economic indicators rose 0.6 per cent last month, while the Nikkei in Japan was up to a new five-year high today on the back of the country's improved official economic forecasts.
FTSE 100 newcomer easyJet is again at the top of the risers board as investors took encouragement from the performance of Ryanair in the face of tough economic conditions. The Dublin-based rival reported a 13 per cent rise in post-tax profits and said it expected further growth in the current year.
EasyJet shares, which have already risen by more than 50 per cent this year, are up by 51p to 1239p.
Meanwhile, shares in rail and bus operator FirstGroup have dived by 18 per cent after it announced plans to raise £615million from shareholders in a rights issue and said it would axe its dividend for the next year.
The company, which is planning to pour £1.6billion into a four-year investment programme, is looking to tackle debts of nearly £2billion and the fall-out from the botched bidding process for the West Coat mainline. Shares were 39.5p lower at 184.3p.
(8:00am Open) The FTSE 100 has hit a fresh five and a half year high this morning spurred on by robust economic data out of both the United States and Japan, with technical analysts anticipating further near-term gains.
The FTSE 100 was up 15.61 points, or 0.2 per cent, at 6,738.67 shortly after the open, not far from an intraday peak of 6,754.10 reached in 2007, a resistance level for the index and a near-term target for a number of technical analysts.
Craig Erlam, analyst at Alpari, reckoned the FTSE 100 could break that level this week, setting his next target at 6,838, a high in September 2000 which he said was attainable in the next few weeks.
The U.S. Dow Jones Industrial Average and S&P 500 finished at new record highs on Friday after estimate-beating economic data and Japan's Nikkei surged to a new five and a half year high on Monday as Tokyo raised its assessment of the country's economy for the first time in two months.
The Japanese government upgraded its assessment of the economy as emerging signs of an upturn in exports and factory output added to growing evidence that Prime Minister Shinzo Abe's aggressive polices are beginning to reignite growth.
The world's third-biggest economy is gradually recovering, according to the government's monthly report released by the Cabinet Office.
The upgrade was the first in two months, and an improvement from April when it said the economy was showing signs of recovery but still had some weak spots.
The government's latest take on the economy came ahead of the Bank of Japan's two-day meeting ending on Wednesday, which is expected to leave policy unchanged after announcing a sweeping monetary expansion campaign in early April to vanquish 15 years of entrenched deflation.
At home shares in airline Ryanair have climbed by 6.38 per cent after it posted record full-year earnings, but the company warned profit growth may slow.
Elsewhere shares in transport firm FirstGroup slumped by 15.55 per cent after it announced a new rights issue.
Meanwhile, Google's chief executive Eric Schmidt is due to meet Prime Minister David Cameron today. The the internet firm came under renewed fire from U.K. politicians over its tax affairs last week while a former Google executive turned whistleblower says he has 100,000 emails that expose the 'immoral' tax avoidance scheme used by his former employer.
Barney Jones, who worked for Google from 2002 until 2006, said the company has 'pulled the wool over the eyes of HMRC and the British population'.
