FTSE live: Standard down; Miners up

By Ed Monk for Thisismoney.co.uk
Updated: 11:02 EDT, 13 October 2010

16.00: Strong quarterly results from JP Morgan and chipmaker Intel boosted stock market confidence on both sides of the Atlantic.

Watching brief: Investors will watch unemployment data for clues on the state of the domestic economy.

London's FTSE 100 leapt more than 1%, surging past the 5,700 mark with a rise of 75.2 points to 5,736.7, while the Dow Jones was 0.8% higher, up 97.3 to 11,117.7.

Figures from Intel last night set the tone for the session after it beat forecasts on both income and revenue and allayed fears that the personal computer sector would struggle during the second half of the year.

Spirits were further boosted by a 23% rise in third quarter profits at JP Morgan as income reached a better-than-expected £2.8bn. It also reported a decline in bad debts.

The minutes of the most recent US Federal Reserve meeting also encouraged investors, adding to expectations that policymakers will step up money-boosting efforts in a fresh move to safeguard the American economic recovery.

12.30:

The FTSE 100 maintained its strong start to trading. The London index is 72 points up now at 5,733.8.

Burberry was lower despite forecasting that full-year profits will be in the top half of City expectations.

The company said it continued to trade well, but analysts noted that sales growth was slightly lower in the second quarter compared with the first.

It was top of the fallers board after shares dropped 23p to 1,016p following a recent strong run for the company.

Pub group Punch Taverns extended losses in the second tier, down another 5% or 4.2p to 75.8p in the wake of an 11% plunge yesterday after its full-year underlying profits of £131m came in short of some City hopes.

Engineer Bodycote was enjoying a better session thanks to news its annual profits will come in towards the upper end of analyst forecasts. Shares rose 10% or 27.9p to 303.9p.

12.00:

Rockhopper shares have been rocked by news of a possible revision of oil reserve estimates in its Falklands field.

The stock is currently down 13% to 399p.

10.10:

The FTSE 100 has risen today on hopes that the US will embark on further stimulus measures, while banks fell after a surprise cash call by Standard Chartered.

The Footsie opened strongly and was 68.75 points higher at 5730.34 in early trading. Some 86 of the 100 blue chip companies were in positive territory.

That was after details from the Fed's latest meeting showed the US central bank may soon flood markets with cheap cash soon to further boost growth.

Banking shares were under pressure today after Standard Chartered surprised the market by launching a £3.26bn investor cash-call.

The London-listed group wants to ensure it is well prepared for incoming Basel III rules, which will force banks to more than double the spare cash they hold to prevent a repeat of the financial crisis.

The move raised questions over further fundraisings among other UK banks, although the wider London market was unaffected as the FTSE 100 Index - up 55.2 points at 5716.8 - returned to levels last seen in late April.

Miners recovered from a weak session yesterday to post gains of up to 4%, led by silver producer Fresnillo after a rise of 66p to 1296p.

The fallers board was led by Standard Chartered after a drop of 68.5p to 1840p, while the fundraising speculation meant Barclays dropped 7.65p to 287.1p, a fall of 3%. HSBC declined 0.5p to 662.7p.

Fashion house Burberry was also lower despite it forecasting that full-year profits will be in the top half of City expectations. The company said it continued to trade well but analysts noted that sales growth was slightly lower in the second quarter compared with the first.

Shares dipped 29p to 1010p after a recent strong run for the company.

On Wall Street later today, the Dow Jones is expected to open higher, according to the futures markets.

Sterling is weaker today. It is down at a four-and-a-half month low against a basket of currencies, and at a five-month trough against the euro. The pound was worth €1.1313.