London's blue chip equity index has made gains of around 15 points this morning and for now at  least the 5700 level remains intact, London's blue chip equity index has made gains of around 15 points this morning and for now at  least the 5700 level remains intact, though we have printed as low 5708 this morning. 

 

Mining stocks have helped the index into positive territory  with Kazakhmys up by 2.8% and Glencore better by 2.35%. The  move looks more sustainable however as it is supported by trade in around 4 million shares.

 

Vodafone is the most active security in the top flight today with turnover above 15 million shares though it is being run a close second by Lloyd's bank.

 

WPP are the days biggest  faller weaker by 1.41% as I type and I note that ITV, which we mentioned earlier in the week, have slipped back to 83.6p  down by just under 1% this morning.

 

Futures markets suggest  that US markets may open modestly better this afternoon.

FTSE has weakened further  this morning as concerns about Europe come to the fore once again. The semi autonomous state of Catalonia has asked the Madrid government for €5 billion to help it make ends meet . The economy of Catalonia is bigger than that of Portugal and the regional government has more than €40  billion of outstanding debt, so these are not insignificant developments.

FTSE has tested back to as low as 5739 this morning but should selling momentum pick up  then tests of 5700 and recent lows around 5685 are likely to be on the cards.

Miners and banks are  the days principal fallers whilst Utilities are the notable gainers presumably finding favour  for the defensive qualities.  Mobile phone operator Vodafone regains its spot as the most active blue chip with turnover on the day at more than 20 million shares, comfortably outstripping Lloyds and Barclays which have traded around 14 million shares each on the days so far.

Overall  however volumes  are very much on the light side and it feels  very much as though  many participants have extended their bank holiday break. US markets are seen as opening fractionally lower this afternoon and the malaise  in European markets  may spread across  the pond as well.

FTSE resumes trading today in a similar fashion to Fridays uninspiring session.

The index of blue chip equities is down by 10 points in a thin morning with few standout features . One stock that does standout however is DIY retailer Kingfisher, owner of the B&Q chain here in the UK which have fallen by 3.78% this morning, following a downgrade by respected US broker BOA Merrill Lynch, who cite the poor French retail market and who have sharply reduced their 2014 forecast for the home improvements group.

Gong in the opposite direction are broadcaster ITV which have added 2.2% this morning, having been written up at both Deutsche Bank and Citi Group today. The stock has printed as high as 85.4p in the session and though that's still well below the 52 week high of 91.25p be aware that the stock has historically struggled to break cleanly above 87/88p.

On the Macro front the meeting of the world’s Central Bankers at Jackson hole Wyoming is occupying traders’ minds.

The possible contents of Federal Reserve chief Ben Bernanke’s speech from the mountain retreat and ECB chief Mario Draghis non attendance are just two of the variables on their mind. However last year’s event was also highly anticipated and turned out to be an major anti climax so we could be in for more of the same.

London markets look set to head into the bank holiday weekend below the 5800 level despite an upward revision in UK GDP figures for the first half of 2012 which, was released  this morning.  

 

EU Premiers are meeting today and the finances of both Greece and Spain will be top of their agenda Greece will likely ask for concessions in its enforced austerity measures whilst Spain could use the meeting to explore what help may be available to Madrid from the ESM/ESFS though may stop short on this occasion at least of a formal request for aide. 

 

US futures markets suggest a weaker open for Wall Street this afternoon is on the cards.

London's Index of top 100 shares had its biggest move for some this morning falling by more than 50 points to 5800 having tested below the round number earlier in the session.

The mark down is broad based as can is testified by the fact that 94 of the index constituents are down on the day with just half a dozen stocks in the black at the time of writing.

The day’s top faller is Kingfisher down by 3.5% following a downgrade for the retailer at Deutsche Bank who moved from buy to hold and cut their price target to 315p from 340p previously though that remains well above the current 284p price for the stock.

With the long week ahead in the Bulls of the FTSE will be keen to keep the index above 5800 but the market is weakening once more as type and posting new lows on the day so this prove to be easier said than done. Currently futures markets are indicating a flat open for US markets which sold off into the close last night. The S&P 500 had made new 52 week highs in the session but failed to hold on to that higher ground.

London’s FTSE is marking time once more this morning up by 14 points or just 0.25% in another session characterised by low volumes.

Mining stocks are the best performers this morning with 7 out of the top 10 gainers hailing from the mineral resource sector.

Fund manager Ashmore is the day’s biggest faller after the emerging markets fund manager was mentioned in a note from HSBC this morning though in truth the fall is a modest 1% on just over 220,000 shares traded, so nothing to shout about in the grand scheme of things.

Europe remains in focus with next week’s EU summit foremost in peoples’ minds. Although many participants will also be thinking about the long bank holiday weekend here in the UK and the run up to Labor Day in the USA, thereafter, which traditionally signals the end of the summer , as far as markets are concerned. Whether or not that will mean a return to higher volumes and more day today interest in equity markets however remains a moot point . US markets are called to open modestly better this afternoon with index futures suggesting single digit gains for Wall Street from the off.

Once again markets start a new trading week with whimper not a bang, Spanish bond yields have fallen back to around 6.3% this morning on hopes that EU action will prevent the need for a full scale bail out however the equity markets are rather more sanguine about that prospect.

The index of London's top 100 shares is down around 6 points in woefully thin session with no real volume outside of That in Lloyds Banking which are also the days only significant gainer up by nearly 3%.

Lonmin on the other hand slip back once ore following a broker downgrade and it’s hard to see how production / normal labour relations at their Marikana mine will be resumed any time in the near future, after the terrible loss of life seen during last week’s clashes between miners and the police. Many other mining names are weaker in sympathy this morning.

At this early juncture US futures suggest that Wall Street will open up by around 10 to 15 points but with Q2 earnings season over markets over the pond are also in need of additional stimulus.

London Markets remain becalmed today with the index of top 100 shares barely changed on the day, after a lacklustre US session last night.

Where stocks have moved this morning they have done so on light volumes, for instance there is less than one million shares of combined turnover between the top 5 FTSE gainers, which comprise Russian and Kazak miners and UK engineers.

Europe remains in the headlines with Spain hoping to receive the first tranche of bailout funds imminently, although there is already talk that the money may not go directly to the countries banks.

There are also reports in the German press that Politicians there wish to reweight voting rights amongst EU member states - a hot potato if ever there was one.

Once again US markets are called open marginally better ahead of their 14.30 start and I doubt we will see any fireworks stateside this afternoon. Perhaps it’s just as well that (weather permitting) the test match against South Africa is starting today as that will be the only event on a screen today that is likely to hold our attention.