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CFD Traders DiaryFavourable FOMC statement powers the FTSE 100 index1/2/2007
The
big move on Wall Street after the FOMC decision and accompanying statement led
to a mark up and rally which saw the FTSE 100 index up1% mid-morning. There was also support from another push in commodity
prices with gold and oil both hitting new highs for the current move. The rise was widely spread with gains in
property stocks, fund managers and insurance aswell as resource plays, where
there were several reports from the majors.
Royal Dutch Shell saw Q4 current cost of supply earnings
rise 14% which beat expectations following a good operational and financial
performance. The news was well received
with a rise of 2.7%. Rio Tinto however was down despite
announcing a 48% increase in full year underlying earnings. There was a mixed outlook statement for 2007, despite
record production volumes in iron ore, alumina, US coal and
molybdenum. In the drinks sector, Mitchells & Butler said its
strategy has continued to drive strong market share as overall trading in the
first quarter came in line with expectations. In the first 16 weeks to January, like-for-like
sales were 4% ahead, and pubs in residential areas generated like-for-like
sales growth of 4.6%.
Elsewhere, there is talk that Vodafone
will lodge a formal bid for Indian mobile operator Hutchison within days. Astra Zeneca
has agreed to buy privately owned Arrow Therapeutics, a UK biotech focused on the
discovery and development of anti-viral therapies, for $150m in cash. Capita
has signed a £243m contract with Swindon Council to deliver local
services. Northern Foods said chief executive Pat O'Driscoll will leave the
company and be replaced by Stefan Barden, currently director responsible for
the chilled and bakery divisions. Balfour Beatty has agreed to buy Centex
Corporation's US building business for $362m in cash.
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