The FTSE opened marginally higher this morning, rising by 18.7 points, or 0.4%, to 5333.79.
Standard Life was the biggest riser up 1.7% to 197.1p while BT Group gained by 1.3% to 117p after speculation continued it could sell units to plug its pension deficit.
The list of fallers was peppered by companies that are now ex-dividend.
In this camp, Reckitt Benckiser Group fell 1.8% to £34.19, while Rio Tinto dropped 0.8% to £33.53.
Rival BHP Billiton was not ex-dividend, but fell nevertheless, by 0.6% to £19.88.
Wolseley, which rose yesterday after saying latest profits would beat expectations, fell back by 1.2%, to £16.11.
Markets will watch today to see if the German fourth quarter GDP numbers deviate from the median forecasts of 0.7% growth on the third quarter, and a 2.4% contraction compared to Q4 2008.
In the US, meanwhile, all eyes will be on Federal Reserve chairman Ben Bernanke as he begins two days of testimony before parliamentary committees. Statistics for US new home sales in January are also due.
At close of play in the US, the Dow Jones index shed 1%, or 101 points, to 10,282.41 points after a fall in the latest US Conference Board consumer confidence index dispelled any thoughts a consumer-led US recovery would come swiftly.
Home Depot defied this, however, rising 1.4% to $30.75 after beating expectations with its fourth quarter results. Alcoa fell furthest, by 2.8% to $13.16.
In Japan, the Nikkei 225 index dropped 1.5%, or 153.27 points, to 10,198.83 points, also affected by the US news.
Toyota Motor Corp, recalling millions of vehicles over brake defects, fell 1.5% before its president was to appear at a US hearing on the safety lapse.
America wont stay down long.
The American consumer is starting to understand the importance of balanced trade, and the causes and effects of ‘consumer confidence’, ’speculation’, inflation, etc… As a result, they’re focusing more of their buying power back into the American economy. I think this is going to keep market researchers confused for a while, cause the dollar to keep climbing and add an extra boost in the job market despite all politically motivated speculation to the contrary.
If you understand how the strings are pulled, and can keep an eye on that as well as the changing conditions and other signals, there’s a lot less risk in investing and a lot more profit to be had. Speculating from any angle, while ignoring the others makes investing very risky.
Posted by: James Hovland
24 Feb 2010 | 11:37
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