1630:Close UK stocks rose strongly on Monday, although they lagged a tad behind continental peers. Shares of Aberdeen Asset Management did best as they bounced off of technical support towards 340p. Diversified mining group Rio Tinto, meantime, rose after announcing that it has loaded the first shipment of iron ore from its expanded port, rail and mine operations in Australia. Homebuilders were also stronger as a group after Hometrack reported that house prices gained again in August, at a 0.4 per cent month-on-month clip. easyJet shares
did well, perhaps in anticipation of positive traffic data due out this week. Fresnillo led on the downside after broker UBS downgraded the stock to neutral from buy; the analysts believe that its valuation is less appealing following a 27 per cent advance in August, versus a 17 per cent increase in the price of silver.
The Markit manufacturing sector purchasing managers' index for hit a consensus-beating two-and-a-half year high of 57.2, leading the survey compiler to talk of 'booming' conditions in the sector. Economists' average forecast was for 55.0. 10-year Gilt yields reacted in kind, also hitting 2-year highs, near 2.86 per cent. FTSE 100 up 93 to 6,506.
1531: Analysts at Bank of Merrill Lynch are keeping a close eye on events in emerging markets [EMs]. Based on their methodology, "two-thirds of major Asian markets currently have their financial vulnerability scores in the highest third of their history - a concern to us. This is close to what was observed in mid-1997, prior to the Asian crisis. [...] Singapore (surprisingly), India and Malaysia score poorly on our measure of financial vulnerability. China, Hong Kong and Indonesia are also concerning. Korea and Taiwan look less vulnerable, while Thailand is in the middle." Shares of Aberdeen Asset Management continue to be in the lead on the Footsie after bouncing off of technical support towards 340p.
1519: According to some market commentary the Qatar wealth fund is looking to diversify its wealth portfolio away from Europe to Asia and the US. Barclays is amongst some of its high-profile assets. FTSE 100 up 104 to 6,517.
1400: Stocks are continuing to head higher with shares of Aberdeen Asset Management at the top of the leader-board on the back of improved sentiment towards emerging markets, at least for today. Miners are also doing well following better than expected manufacturing numbers out of China overnight. Analysts at Deutsche Bank have upgraded their view on WPP to buy from hold. Fresnillo is lower following a downgrade out of UBS.
1105: Telecoms are rising strongly this morning with Vodafone extending gains after saying it is in 'advanced discussions' with Verizon over a possible 130bn-dollar sale of its VZW stake. Ronnie Chopra, Head of Strategy at Tradenext said that Vodafone could have the 'mother of all share buy backs if it wished' after the potential disposal. 'Vodafone shares themselves are now stake over target and one awash with cash, it is imperative that it does not do something rash and over pay for a large acquisition,' he said. Sector peer BT is also making decent gains this morning after positive comments from Credit Suisse which reiterated its 'outperform' rating on the stock'. The broker said that BT's Q2 update next month will see rising wholesale fibre adds and a slowdown in the rate of line loss. The FTSE 100 is up 94.6 at 6,507,53.
0928: The Markit/CIPS manufacturing sector purchasing managers' index for the month of August rose to 57.2 from 54.8 a month ago (Consensus: 55.0). That is the highest reading in 30 months. The output gauge soared to 62.4 from 58.3. On the basis of past correlations the output balance points to a pick-up in the quarterly growth rate of manufacturing output from 0.6 per cent in the second quarter to about 2 per cent in the third quarter, Capital Economics points out. Even so, the think-tank's economists still worry that the recovery will lose some pace, in so far as it has partly reflected unsustainably strong growth in domestic household spending. "But for now at least, the manufacturing sector appears to be enjoying a healthy bounce-back," they add. FTSE 100 up 91 to 6,504.
0858: The Eurozone's manufacturing sector purchasing managers' index nudged slightly higher in August, finishing the month at 51.4 versus a preliminary print of 51.3.
0842: Stocks have begun the day with a large bounce higher. Miners are in the lead early on following the release of a better than expected number on Chinese manufacturing out overnight. The Markit PMI manufacturing sector survey will be released at 09:28. Vodafone is barely 3 per cent higher despite news that it may announce the 130bn dollar
sale of its stake in US wireless unit Verizon Wireless. US markets will remain closed today in observance of the Labour day bank holiday. FTSE 100 up 82 to 6,495.