Markets take a modicum of rest

Markets take a modicum of rest from reacting to QE news flow to price in what looks like the signs towards accelerating global growth. Gauges for manufacturing activity improved ahead of forecast for the world’s largest economies, with China’s vast manufacturing sector rebounding from a period that saw metals and mining stocks crushed alike.

Investors are coming to terms with the likelihood that the market might already be moving on from the tapering bonanza and is concerned more with how money will move once the asset purchases slow. Equities have today demonstrated that the appetite for risk is much improved now compared with the previous two times markets were faced with an ending, something likely as a result of improved underlying conditions. Bottom line, investors seem to be happier in the market than out.

Risers:

IMI
The global engineering group reports a 4% rise in first-half pre-tax profit and raised its dividend, adding that it remains confident the Group will deliver good progress in 2013. Investec Securities places IMI hold rating and 1355p target on review. They have said there is enough evidence in the 1H results to support Investec’s view of better momentum in 2H and in FY14.

Wolseley
UBS upgrades Wolseley to buy from neutral ahead of results saying "Our analysis of US peers that have reported on 2Q suggests Wolseley's growth should have accelerated to double digit growth in 4Q to July,"

IP Group
The developer of intellectual property-based businesses posted a half-year loss as a result of a change in the fair value of its Oxford Equity Rights asset. They have also said it continues to see an excellent pipeline of opportunities giving increasing confidence in on-going ability to deliver significant shareholder value.

WH Smith
The operator of retail and online business stores have said they expect the outcome for the year to Aug. 31, to be in line with market expectations. They said its travel division - outlets at airports, railway stations, motorway service stations, hospitals and work places - had continued its good performance and was making further progress in winning new business both in Britain and overseas.

Rare Earth Minerals
Shares surge another 39% today after they reported yesterday encouraging final results from a drill programme on the Fleur-El Sauz lithium project in Mexico.

New World Resources
New World Resources plunged to a first-half loss of 477.5 million euros, from a restated profit of 48.4 million euros because of low prices for coal the company describes as "the new reality”. “It has become apparent since our last quarterly update that coal prices are gradually moving towards a new long-term normal," said executive chairman Gareth Penny in a statement.



Fallers:

Premier Oil
Independent exploration and production company Premier Oil PLC posts a 10.3% rise in pre-tax profit during the half year-end, adding that it is well placed to continue to deliver target growth in the underlying value of the business.

Carillion
Integrated support services firm Carillion reports a 13% rise in first-half pre-tax profit, despite revenue falling 9% due to the planned rescaling of U.K. construction. They said its full-year and medium-term targets are unchanged despite markets remaining challenging.

PowerFilm
The manufacturer of thin flexible solar panels today posted a widened loss during the half year-end, adding that it is constantly working to make improvements to be well positioned when external conditions improve. Powerfilm widened its first-half pre-tax loss to $1.5 million, from $1.1 million. Operating revenues totalled $3.3 million, from $4.3 million.

Rockhopper Exploration
The oil and gas exploration company, reports profit before tax for the full-year, reflecting lower expenses and a gain from the sale of assets. However, after a tax charge of $122 million, the company reported a wider loss for the year