Montague Pitman Stockbrokers

Yesterday's Market / Overnight News
Britain's leading share index closed 2.5% lower on Thursday, with market sentiment hit by data showing U.S. employers cut more jobs than expected in June and unemployment in Europe hit a 10-year high. The FTSE 100 ended down just over 100 points after closing 2.2% higher on Wednesday, the first day of the new quarter. Data showed the world's biggest economy lost 467,000 jobs in June, 100,000 more than expected by economists and breaking a four-month trend of slowing U.S. job losses. "This proves that we may not be at the bottom yet. The world's biggest economy, as we know them, is going to be dragged down," said Philip Gillette, a sales trader at IG Index.

Market Today
London is promising to shrug off last night’s collapse on Wall Street to trade higher in the absence of traders in the US, closed for Independence Day on Friday. The Dow Jones slumped more than 200 points Thursday as the market reacted badly to awful jobs data. The FTSE 100 is seen up about 8 points early on. BHP Billiton has agreed to sell its Yabulu nickel refinery for an undisclosed sum after writing down its value by US$675m.

Lunchtime News
Trading remains quiet in London today, after yesterday’s excitement following dismal US unemployment figures. Friends Provident is the worst performing blue-chip as the market adjusts its share price to take account the demerger of its 52% stake in F&C Asset Management. Resource stocks are friendless as might be expected as commodity prices fall. Rio Tinto, Kazakhmys and Vedanta are the big fallers in the mining sector while Petrofac and Cairn Energy are the worst hit of the oil related stocks. BHP Billiton has agreed to sell its Yabulu nickel refinery for an undisclosed sum after writing down its value by US$675m.