There is a much more positive note in the air of the global stock markets this morning. Bank stock p...
There is a much more positive note in the air of the global stock markets this morning. Bank stock prices are surging again thanks to Abbey National after the firm declared there was "no significant deterioration in credit quality" even though lending has been increased by half.
The UK's benchmark index, the FTSE 100, rose 65 points or 1.3% to 5135.4 at the open, largely because Abbey National has announced pretax profits is "comfortably ahead" of last year. Abbey has been trying to move away from home loans into wholesale banking such as insurance and SMEs.
As a result of the strong Abbey presence - which gained 7p or 0.7% to 1037p - HSBC, RBoS and Barclays have seen gains too. HSBC climbed 20p or 2.7% to 766p, Royal Bank of Scotland rose 21p or 1/3% to 1630p and Barclays jumped 29p or 1.5% to 2027p.
For all those people who have subscribed to digital TV, there was some bad news at Carlton and Granada, but not if you are an investor. The media firms responsible for ITV Digital saw their share prices leap this morning by more than 6% after announcing they are considering closing the pay-TV service.
Misys has also seen a rise in its share price, after announcing it has created two units of the software firm to focus on computer systems for the asset management and securities markets. Misys' share gained 5.5% to 219.5p.
It was a little more encouraging in the US too yesterday, as both the Nasdaq and the Dow Jones managed to close up.
Investor confidence in computer-related shares such as Intel and Microsoft kept the market buoyant, and the large financial firms such as Citigroup and JP Morgan Chase gained ground because lower interest rates are likely to increase borrowing and profits.
The Nasdaq Composite Index rose 36.77 points or 2.2% to 1708.08, taking it back above the level the index had reached before September 11. The Dow Jones also climbed 172.92 points or 1.9% to 9377.03.
The rally in the US helped to boost the Asian markets and another fall of the yen against the dollar boosted the value of overseas sales.
Japan's Nikkei 225 index gained 296.15 points or 2.8% to 10,861.56 to its highest level in two months thanks to technology stocks after the yen slid to a 10-week low against the dollar. Companies such as NEC, Samsung and Honda Motor Co are likely to see the biggest gains from this as it gets 90% of its operating profit from the US.
Hong Kong Hang Seng climbed 229.69 points or 2.3% to 10,.027.23 and China's foreign and local currency denominated share indices surged by their 10% daily limit after the mainland regulator suspended sales of state-owned companies. This all comes at the same time as an announcement from the local government that 23 companies have bid to gain gambling licenses in the Macau region of China.
Partner Insight: For Blackfinch, the arrival of its IHT portfolio services was a 'natural evolution' in the group's offering and points to an established track record of returning cash to investors.
Senior Managers Regime
Interest rate outlook unchaged
FCA made demands last week