A down morning for UK markets

A down morning for UK markets, UK Consumer Price Index year on year is down to 2.7% from 2.8% last year. This decrease has been attributed to a smaller price increase in clothing and transport over the year. Despite the decrease, inflation still has a way to go before it reaches the government’s target of 2% helping bring inflation more in line with wage increases, a battle it has been sorely losing.

UK house prices have risen by 3.3% on the year to July on the back of a surge in sales in London. Prices have surpassed the previous record highs achieved at the beginning of 2008. There remains a fear among investors that we are merely witnessing a bubble forming due to government housing schemes as opposed to genuine recovery.

US month on month CPI figures were released at 13.30 today coming in at 0.1%. Expect this to be brought up when the Federal Open Market Committee’s two day meeting gets underway this afternoon. Investors wait with bated breath for the committee’s decision on tapering; recent positive economic indications have led investors to believe this meeting will see bond purchases scaled back by $10 billion a month. This is down from the predicted $20 billion scale back forecast in July. This sentiment has only been strengthened by the withdrawal of Larry Summers from the Fed race, a candidate who was said to favour a faster withdrawal of stimulus.

Risers:

Porvair
The filtration and environmental technology group reports pre-tax profit in the nine months ended Aug. 31 was ahead of management expectations, adding that the full year is also expected to be ahead. They reported revenue up 13% in the last nine months

Debenhams
Debenhams have announced they have remained on track in the past 10 weeks which has helped contribute to like for like sales growth of 2 percent. They believe this will deliver profits that are in line with expectations. Online sales have grown by 46 percent over the last year as mobile growth climbed by 72 percent according to its trading statement released today.

Go-Ahead
JPMorgan Cazenove upgrades Go-Ahead Group to overweight from neutral and raises its price target to 1800p from 1430p. Says it's the only name that has almost exclusive exposure to the U.K. market. "Furthermore, current valuation appears to discount only about 60% of targeted incremental EBIT gains," says JPMorgan. Upgrades Stagecoach to overweight from neutral and raises its price target to 365p from 324p, noting it has best-in-class margins.

Kenmin Resources
The molybdenum and tungsten exploration and development company have announced with immediate effect, the appointment of Kanat Assaubayev as its new Chairman. Shares welcome the news, trading over 10 percent higher

Fallers:

Lloyds
The government has sold a 6 percent stake in Lloyds banking group at a price of 75p, raising £3.2 billion. The sale cuts the government’s stake in Lloyds from 38.7 percent o 32.7 percent. The shares which were offered to intuitional investors have now been sold. We are believed the next sale of Lloyds shares is expected to include an element aimed at retail investors but this won’t happen for another 90 days.

Investec
The banking and asset management group have reported full-year results of its global Specialist Banking business are expected to fall behind last year's level, while the Asset Management and Wealth and Investment businesses are expected to record results ahead of last year's on the back of net inflows.

Evraz
Barclays downgrades Evraz to underweight from equalweight and cuts its price target to 122p from 204p. Says, "our key concern about Evraz is its ability to deliver sustainable deleveraging: even in a relatively successful 1H 2013 the company kept burning cash and we do not see it improving materially in 2H 2013." They also announced that the recently mentioned rights issue could create a substantial share overhang. Adds uncertainty around the Russian domestic long steel supply-demand balance and potential weakness of iron ore prices are also a concern.

Imagination Technologies
The multimedia, communications and processor technology company, in an interim statement have announced they will maintain its guidance of unit shipments in excess of 650 million for fiscal 2014 based on existing and new product shipments. The momentum in the business has continued and there have been a number of important developments during the period. Royalty revenue growth for the latest quarter has continued to be strong, in line with our expectations. The unit volume growth has been significant, driven by volume ramp-up and new product launches from a number of our customers.

UKrproduct Group
The Ukrainian producer and distributor of dairy foods and beverages, have posted a 84% drop in first half pre-tax profit, partly due to higher raw material costs, and said that full year aggregate profit is expected to be below 2012. Pre-tax profit for the six months ended June 30 amounted to £145,000, compared with pre-tax profit of £892,000 in the year ago period