Glencore International leads FTSE 100 higher

| June 6, 2011 | 0 Comments
Glencore International leads FTSE 100 higher

Equities markets in Europe were mostly lower Monday, but London markets managed slight gains as the FTSE 100 added 0.14 percent to 5,863.16 and the FTSE 250 gained 0.2 percent to 11,996.9.

Commodities trader Glencore International (LSE: GLEN) added 1.98 percent to lead gains on the 100 after Deutsche Bank began coverage by recommending its clients buy shares, while media services company Aegis Group (LSE: AGS) was up 6.94 percent and was the best performer on the 250 after it said it might sell its market-research division.

Banks were lower, led by Lloyds Banking Group (LSE: LLOY) with a decline of 3.77 percent to lead retreats on the 100, with the London sector following other banks in Europe and around the globe lower, while Hochschild Mining (LSE: HOC), which mines silver in Peru, was the worst performer on the 250, dropping 8.51 percent after the opposition candidate claimed victory in the presidential runoff election in Peru.

Despite the big decline for Hochschild, miners were mostly higher, while the chemicals sector, energy companies and the real estate sector were also largely higher, but homebuilders and the retail sector were mostly lower and utilities, telecommunications companies and the travel and leisure sector were mixed.

The biggest decliner in the travel and leisure sector was International Consolidated Airlines Group (LSE: IAG), which was down 3 percent as it joined other European airlines in declines after the International Air Transport Association cut its 2011 profits forecast for the industry by 54 percent, citing oil prices, the Japan earthquake and tsunami and unrest in the Middle East and North Africa.

Music retailer HMV Group (LSE: HMV), which is listed on the FTSE SmallCap Index, added 49 percent on media reports that it will soon agree to a 2-year refinancing plan.

The FTSE Eurofirst 300 was down 0.58 percent to 1,105.1 while the Dax fell 0.34 percent to 7,084.57, the CAC-40 was 0.7 percent lower to 3,863.5 and the IBEX dropped 1.24 percent to 10,157.7.

Markets in the Asia-Pacific region were mostly lower on the session.

The Nikkei 225 was down 1.18 percent to 9,380.35 in Tokyo, while the Topix index was 1.05 percent lower to 807.99 but the Mothers market managed to gain 0.76 percent to 460.93.

Utilities were lower, with Tokyo Electric Power (TYO: 9501) down 28 percent to a record low on media reports that it will record a net loss of ¥570 billion ($7.1 billion in the full fiscal year, after reports that radiation in the No. 1 nuclear reactor at its Fukushima Dai-Ichi power plant has spiked to a new high three months after the plant was damaged by the earthquake and tsunami that hit northern Japan in March, and after the head of the Tokyo Stock Exchange suggested that the utility should be put under bankruptcy protection, although the exchange said later that Tepco does not now meet requirements for being delisted.

Banks and brokers were also lower, with Mitsubishi UFJ (TYO: 8306) down 3 percent on the possibility that it could be declared a global systemically important financial institution and be required to keep more cash in reserve, while the electronics sector also saw declines, with Sony (TYO: 6758) down 3.2 percent after hacker attacks on its US and European websites.

Other decliners in the region included Australia’s markets, where the S&P/ASX200 was down 0.31 percent to 4,569.1 and the Sydney Ordinaries dropped 0.38 percent to 4,648.7, while the Straits Times Index was 1.02 percent lower to 3,113.73 in Singapore, but India’s Sensex added 0.24 percent to 18,420.1.

Markets in China, Taiwan and Hong Kong were all closed in observance of the Dragon Boat Festival, while South Korea’s markets were shut for Memorial Day observances.

Wall Street was lower as the Dow Jones Industrial Average were down 0.16 percent to 12,131.7 at nearly 1 p.m. in New York, while the S&P 500 had dropped 0.46 percent to 1,294.21 and the Nasdaq Composite was 0.36 percent lower to 2,722.94.

Crude oil prices were lower, with West Texas Intermediate crude down 65 percent to $99.57 per barrel at midday in New York, while Brent crude was last reported down 68 percent to $115.16 per barrel on the ICE Futures Europe exchange in London, with declines coming ahead of a meeting of the Organization of Petroleum Exporting Countries, scheduled for Wednesday in Vienna.

Metals prices were up after it appeared that Ollanta Humala, who has said he is in favor of more state control over natural resources, had won the presidential runoff election in Peru.

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