Turbulent morning for the markets

A turbulent morning for the markets today with news abroad of bombings in Baghdad and the death toll rising in Egypt, investor sentiment has been driven down. Despite UK retail sales being better than forecast at 1.1% it’s been the end to a five day rally for European shares and a government bonds decline has led to a two year high in Treasury Yield. This news in fact appears to have pushed prices down, with further encouraging signs that the market is recovering funds believe Governor Carney may prematurely raise interest rates before hitting his desired 7% level of unemployment.

Healthcare stocks have been the largest detractors from the UK blue-chip index this morning with AstraZeneca and GlaxoSmithKline leading the decline, their downgrading by Morgan Stanley is being attributed as the main factor in their decline. Commodities prices on the other hand have been driven up amidst the violence in Egypt with Oil being the largest gainer.

Some encouraging news for the US markets with unemployment claims coming in better than forecast and at the lowest level for almost six years; this should help buoy the markets with futures being sold off in anticipation of unfavourable results.

A-level results were out this morning and despite fewer students achieving the very top grades Economics showed the biggest gain in popularity rising 7.4%.

Risers:

Imperial Tobacco
Shares up after reporting Q3 results with volumes falling 7 percent in the first nine months as it continues to be hurt by austerity measures, rising unemployment and illicit trade in Europe.

Talvivaara Mning
The Finnish-based nickel mining business reports a much widened loss for the second quarter of 2013, which it blamed on a weak nickel price and continued water balance issues, but said second nickel production is expected to increase substantially compared with the first half as the newly stacked heaps are taken into production and the overall leaching performance continues to improve.

Mood Media
Mood Media has received non-binding expressions of interest from third parties with whom it is currently in discussions with respect to a potential sale. However, they have said there is no guarantees a transaction would occur. The board intends to complete its strategic review process as soon as possible during third-quarter 2013.



Fallers:

AstraZeneca
Morgan Stanley downgrades AZN and GSK to underweight from equal weight. Cuts AstraZeneca's target price to 3200p from 3400p, cuts AstraZeneca's EPS forecasts for 2013-'17 by between 3% and 12% to reflect the worsening outlook for growth drivers, and the need for operating expenditure to increase

Ophir Energy
African focused, upstream oil and gas resource Ophir Energy PLC posts a narrowed loss during the half year-end, adding that it is well placed to proceed with drilling across its high impact operated acreage with both gas and liquid targets during the next 12 months. "The equity raise in March combined with our ability to secure a rig under long-term contract for the East Africa drilling campaign means we are well positioned to continue to deliver for our shareholders over the next 12 months”, said chairman Nicholas Smith in a statement.

Gem Diamonds
They have reported a 39.3% drop in pretax profit during the half year-end, adding that it continues to make good progress with additional initiatives assessing opportunities to target low capex. Revenues fell to $96.5m in the six months to the end of June – down from $122.6m last time. The Chief Executive Clifford Elphick said “the first half of 2013 was a difficult period for the LetSeng mine”.

Drax Group
HSBC downgrades Drax to neutral from overweight after a strong share price performance, but the bank raises price target to 735p from 710p based on US acquisitions

SIG
The building products company, said its first-half performance was affected by a long winter and weak market conditions, resulting in a lower profit, knocking £5m off its half-year profits. However, the group has said trading has improved as the weather returned to seasonal norms over the last few months. Underlying pre-tax profits fell 15 per cent to £30.2m in the six months to June 30.

Antrim Energy
Posted a swing into net income during the second quarter, adding that it expects to see increased production from the Causeway Field following deployment of the electrical submersible pump or ESP in the second half of 2013. It has revealed that production averaged 2,283 barrels per day in the second quarter and 2,807 barrels per day over the course of the six months to the end of June - respective equating to 668 and 821 barrels net to Antrim.