1630: Close The FTSE ended the day with a relatively modest loss, as concerns over the US government shutdown and debt ceiling talks dragged stocks lower. One of the day's biggest fallers was M&S after Credit Suisse retained its 'underperform' rating. In economic news, Vince Cable warned there was still a long way to go in getting enough females into the top executive roles, while Credit Suisse said the UK housing market is not in a "bubble". Online advertising spend reached a record high, while optimism amongst Britain's banks and other financial firms is at its highest in almost 17 years, according to a recent survey. The FTSE closed down 16.60 points at 6,437.28.
1617: Strategists at Goldman Sachs have today proposed to clients going "long" on the FTSE 100 while going "short" on the Swiss stock market benchmark. The broker argues that the British market is more geared to an improvement in the global economy.
1517: Investor demand for Lloyds´ sale of a benchmark five-year euro senior unsecured bond is described as strong by market participants, having reportedly been able to price it at 53 basis points above mid-swap, and puts an end to a two-year hiatus from the public euro denominated debt market. It is only the second UK lender - alongside Santander - to have tapped it this year. FTSE 100 down 20 to 6,434.
1509: Outsourcing group Serco has reportedly been awarded a position on the United States Army Communication´s 4.1bn dollar
multiple award IDIQ contract.
1344: The Reserve Bank of India has cut its marginal standing facility by 50 basis points to nine per cent.
1341: "The US government shutdown has already extended to four working days and there is a rising risk that it could last for two weeks or more," economists at ABN Amro wrote this morning. FTSE 100 down 55 to 6,399.
1223: China´s President, Xi Jinping, has reportedly said that annual gross domestic product growth of 7 per cent will suffice. He expects a "long and tortuous process" of world economic recovery. In parallel, Morgan Stanley has lowered its gold and silver price
forecasts for 2015 to 2017 by 9.0 to 12.0 per cent.
1128: Analysts at Citi reportedly believe that the metals and mining sector will be range-bound over the next one to two years.
1127: Precious metals group Fresnillo was among the few risers on the FTSE 100 on Monday morning after UBS raised its rating for the stock from 'neutral' to 'buy', saying the recent weakness in the stock provides a buying opportunity. The stock has fallen by 30 per cent since the end of August: it is now trading at less than one times net present value and the forward price-to-earnings multiple has contracted from 40 to 27, the Swiss broker points out. Their analysts also believe that the deteriorating markets & macro [environment] in the fourth quarter of 2013 will get gold investors anticipating another round of Fed reflation at some point in 2014, and that would be bullish for gold, and by extension silver. FTSE 100 down 52 to 6,402.
1027: Analysts at Nomura write this morning that BskyB´s first quarter figures should show the scale of the impact which BT Sport has had on broadband market shares. They estimate the impact will turn out to be in-line with their initial expectations. Nevertheless, changes in the TV subscriber market share may not have been as great as feared, so they raise their estimate for TV net adds to +15,000 from +5,000. The Japanese broker also highlights the critical importance of the firm retaining the rights to the Champions League, even if at a high cost. That would signal a robust defence of its business model and the company could cut costs elsewhere (such as in movies).
1014: Power systems group Rolls-Royce has received an order from Japan Airlines to deliver its Trent XWB engines for a new fleet of 31 Airbus A350s. In other news, Rolls-Royce was also awarded two contracts worth a combined $496m to support T56 engines for US government aircraft. For their part, analysts at AlphaValue recently upgraded their view on the firm´s shares
to reduce, from sell, they revealed today.
0835: Stocks have started modestly lower, as negotiations over the budget impasse continue in the US Congress. Analysts are busy trying to estimate the potential impact of alternative outcomes. Under one hypothetical scenario the US Treasury could avoid defaulting on its debt past October 17th, but only by re-prioritising its expenditures. However, that could require significant fiscal retrenchment, of up to five percentage points - of gross domestic product - according to Roubini Economics, in remarks to Bloomberg TV. Burberry is lower after downbeat comments on the potential duration of the slowdown in Chinese sales from the firm's Chief. Credit Suisse has put out a note on Marks&Spencer, noting that it is trading at a 20 per cent premium to their long-term average and adding that they look overbought, "particularly given the likelihood of further pressure on earnings." They maintain their 425p target and underperform rating. FTSE 100 down 47 to 6,407.