Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Markets rise as US consumers bounce back

Markets rise as US consumers bounce back

Britain’s markets made cautious gains as better-than-expected US retail sales figures encouraged investors that the US economy could be getting back on the road to recovery.

The FTSE 100 added 0.21%, or 12 points, to 5,806 and the Mid-250 index increased 0.15%, or 17 points, to 11,856.

In the US trade got off to a bright start as retail sales rose a stronger-than-expected 1.1% in September, ahead of an estimated 0.7% increase.

Bank Citigroup’s three-month profits plunged to $468 million (£291 million) in the third quarter as it took a $4.7 billion hit (£2.9 billion) on the writedown of its brokerage Morgan Stanley Smith Barney (MSSB). However, the results were ahead of expectations as its net income came in at $3.3 billion (£2 billion).

On Wall Street the Dow Jones Industrial Average took on 0.39% to 13,383, the Standard & Poor's 500 index rose 0.23% to 1,431, and the Nasdaq Composite index gained 0.22% to 2,716.

The dollar advanced as the dollar index, which tracks the greenback’s performance against a basket of major currencies, added 0.11% to 79.75.

On the FTSE 100 Admiral Group (ADML.L) rose 32p, or 2.9% to £10.87 to the top of the index. B&Q owner Kingfisher (KGF.L) took on 5p, or 1.9%, to 273p following a positive note from analysts. Caroline Gulliver, analyst at Espirito Santo, said the company’s Screwfix operations were on track.

‘There are macroeconomic concerns for the group in France and Poland but we remain convinced that Kingfisher is well positioned to gain market share and grow profits, thus with the stock trading on 11x our 2013 earnings-per-share estimate we remain buyers,’ she said.

Miners held the FTSE 100 back amid continuing concerns about lacklustre economic growth and its impact on commodity prices. Kazakhmys (KAZ.L) shed 25.5p, or 3.26%, to 692p; Eurasian (ENRC.L) gave up 9.1p, or 2.8%, to 320p; and Evraz (EVRE.L) lost 5.1p, or 2.2%, to 229p.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: what's behind the second oil crash?

Brewin's Gutteridge: what's behind the second oil crash?

This week Brewin Dolphin's research head talks to Will Riley, co-manager of the Guinness Global Energy fund, about what next for oil.  

Play AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Richard Bullas has quietly been making a name for himself at the helm of the Franklin UK Smaller Companies fund.

Play Sector spotlight: how Harwood's Philbin is playing emerging markets

Sector spotlight: how Harwood's Philbin is playing emerging markets

Emerging markets have been a rollercoaster for investors, but amid the doom there have been have been bright spots, such as India. 

Your Business: Cover Star Club

Profile: CHI's bond supremo on liquidity and bond risk management

Profile: CHI's bond supremo on liquidity and bond risk management

'Some people have been extremely complacent about rate rise risk. Myself, I wish they would just get on with it.'

Wealth Manager on Twitter