UK Shares Rise Despite Conflicting Insurance Reports
It appears that yesterday was only a blip on the otherwise upward trajectory for the UK shares, as once again momentum has swung in favour of the bulls.
At 10am (London time) the FTSE was up 28 points at 6456.
Today’s economic calendar is a full one, with 10-year debt auctions from Spain and France, German monthly factory orders and interest rate decisions from both the BoE and the ECB, although neither is expected to change their current stance.
These figures will set the markets up for tonight’s after-hours statement on the latest US bank stress test results, as well as tomorrow’s important US Non-Farm Payrolls figures.
The UK insurance sector witnessed two wildly conflicting reports this morning.
The first was from Standard Life, whose excellent profits, up 65% on the year, enabled the company to announce it would repay shareholders Â£302 million.
In contrast, Aviva have decided to cut their annual dividends to shareholders by 10% in order to help cover strategic costs and bolster its capital cover.
In a year where London hosted the Olympics, it’s little surprise that temporary power supply company Aggreko announced an increase in pre-tax profits of 11%.
However, without the benefits of such large operations for 2013, Aggreko’s forecasts for the first six months of the year are considerably less optimistic.
Looking ahead to the US open, at 10am (London time) the Dow is being called to open up 20 at 14,316.
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Financial Market Comments from Alastair McCaig, Market Analyst, IG Index.
The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.
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