Morning Market, Thursday 5th June 2008

The FTSE was up this morning, with some investors returning ahead of the interest rate decision and the US non-farm payroll figures.  With the US closing down last night, buyers came back in anyway, despite the general feeling that UK interest rates will remain at 5% for the forseeable future, so to keep inflation at a manageable level.

Over the pond last night, the DJI closed down 12.37 at 12,390.48, whislt the S&P500 closed down nearly half a point at 1,377.2, and the Nasdaq down nearly 23 points at 2,503.14.

In the Far East today the Nikkei 225 index closed up 94.45 points at 14,341.12, whilst in Hong Kong the Hang Seng recently closed 132 points at 24,255.29.

With the UK housing market in a little bit of a lull, to say the least, luunchtime’s interest rate decision will be waited for with abated breath, although it seems everyone has resigned for another month, at least, of 5%. Halifax’s housing market survey showed a 2.4% fall in May, with further price falls expected.

Back here in the London stock market, it was the banks who were cojing back in favour.  The US private equity group, Texas Pacific, has given some life back to the sector as it tries to add to its B&B stake.  RBS was up 8p at 258p, whilst HBOS was up 10p at 350.5p, Barclays up 10p at 362p, and B&B up 2p at 70.5p.

Housebuilders also did well early doors, depsite interest rates looking like they’ll remain unchanged, with Bellway rising 12p to 606p despite saying there was a big slowdown, to the tune of 30% less reservations than last year at this time.  Peers also did well, with Bovis Homes up 12p to 4-quid, Redrow up 9p at 223p, Taylor Wimpey up a penny at 79p, and Persimmon up 12p at 467p.

B&Q owner Kingfishger was up 2.4p at 138.3p, whilst Argos owner Home Retail Group was up 10p at 248.5p, and Marks & Sparks up 6p at 386.5p.

Supermarket chain Morrisons was down 8p at 284p after saying sales were slower.

The miners were down, as metal prices fell. Lonmins was down 95p at 3,359p, whiuslt Anglo was down 70p at 3,331p, BHP down 35p at 1,865p, and Rio down 93p at 5,911.

Halfords was up 8p at 274p after some good results were posted this morning.