Burberry leads gains on 100 as sales advance

| July 13, 2011 | 0 Comments
Burberry leads gains on 100 as sales advance

European equities markets were higher Wednesday US Federal Reserve Chairman Ben Bernanke said the Fed will take more action to support the US economy if necessary, saying that “The Federal Reserve remains prepared to respond should economic developments indicate that an adjustment of monetary policy would be appropriate.”

The FTSE 100 added 0.64 percent to 5,906.43 in London, while the FTSE 250 was up 0.55 percent to 11,843.2 as clothing-related shares led gains on both the 100 and the 250 on gains in sales.

Fashion house Burberry (LSE: BRBY) was up 6.45 percent to lead gains on the 100 on higher sales in Asia, while clothing maker and retailer SuperGroup (LSE: SGP) added 21.03 percent to top winners on the 250 after sales were reported up 48 percent in the 10 weeks ending 10 July, but clothing retailer Marks & Spencer (LSE: MKS) dropped 2l.47 percent for the worst performance on the 100 after a disappointing report on revenues.

Specialty chemicals group AZ Electronic Materials (LSE: AZEM) was 4.47 percent lower to lead declines on the 250.

British Sky Broadcasting Group was up 1.95 percent in a mixed media sector after News Corp (NAS: NWS) withdrew its bid for the broadcaster after Prime Minister David Cameron announced that the government would support a motion in Parliament calling on News Corp to give up its attempt to buy the shares of BSkyB which it does not already own.

Miners were higher, led by African Barrick Gold, which was up 5.68 percent as three other miners also gained at least 5 percent, while banks, the energy sector, insurers and utilities were also mostly higher, but retailers and the food and beverage sector were mostly lower and homebuilder, the telecommunications sector and the travel and leisure sector were mostly lower.

The FTSE Eurofirst 300 was up 0.73 percent to 1,099.69 while the CAC-40 added 0.51 percent to 3,793.27, the IBEX was 0.66 percent higher to 9,666.9 and the Dax gained 1.31 percent to 7,267.87.

Most markets in the Asia-Pacific region were higher, but the Taiex dropped 0.03 percent to 8,488.06, with gains coming after China’s economy grew more than expected in the second quarter over the same period last year, although growth slowed from the first quarter in an indication that monetary policy tightening to cool the economy could be working.

The Nikkei 225 was up 0.37 percent to 9,963.14 in Tokyo, while the Topix index added 0.39 percent and the Mothers market gained 1.66 percent to 485.54 as traders saw gains after Credit Suisse began coverage of the sector with an “overweight” rating, sending Mitsubishi Corp (TYO: 8058) up 1.8 percent while Mitsui & Co (TYO: 8031) added 2.1 percent.

Exporters were helped by a weaker yen and the growth in China’s economy, with heavy machinery manufacturer Komatsu Ltd (TYO: 6301), which counts China as its biggest market, up 0.8 percent and industrial robot maker Fanuc (TYO; 6954) gained 1.3 percent, while oil companies were higher after yesterday’s gains in oil prices.

The Straits Times Index was up 0.36 percent to 3,088.42 in Singapore, Australia’s markets were higher as the Sydney Ordinaries and the S&P/ASX200 each added 0.43 percent to 4,583.2 and 4,514.8 respectively, the Kospi was 0.94 percent higher to 2,129.64 in South Korea, India’s Sensex gained 1 percent to 18,596, the Hang Seng was up 1.22 percent to 21,926.9 and the Shanghai Composite added 1.48 percent to 2,795.48.

New York equities markets were higher in early afternoon trade, with the Dow Jones Industrial Average up 1.11 percent to 12,584.7 while the S&P 500 had added 1,328.51 and the Nasdaq Composite was 1.32 percent to 2,818.66.

Gold prices were up $22.70 to $1,585 per troy ounce on a weaker US dollar and on concerns about the economy after Ben Bernanke’s remarks indicating that the Federal Reserve could make more moves to stimulate the US economy, while silver had added $2.47 and copper was up a cent.

Crude oil prices were also higher in midday trade as West Texas Intermediate crude was up by $1.46 per barrel and Brent crude had added $1.50 per barrel.

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