The FTSE100 is currently down once again, today it’s down 8.3 points at 5,511.3, the FTSE250 is on the up 8 points higher at 8,729.7 and the FTSE Smallcaps is down 9.8 points at 3,254.1.
Volume is poor so far with just one billion shares changing hands in 143,231 deals.
Wall Street is seen opening in positive territory today, recovering after yet another session of losses overnight which pushed the Dow back into the red for the year so far.
Much-awaited US CPI data is due out before the American open, which will provide investors with further clues about the health of the US economy. Fingers crossed!
Analysts are looking for a rise of 0.3% in May from the previous month's 0.6%, while the core reading is expected to show a gain of 0.2% against April's 0.3%.
Today’s look at individual Stocks:
The main faller was BAE Systems today, losing 12p at 336.75p. The aerospace group was hit by news its Airbus joint venture, in which it holds a 20% stake, is delaying deliveries of the forthcoming A380 super-jumbo. Airbus informed clients last night that deliveries of the A380 are to be delayed by six to seven months due to production issues. Lehman Bros said that all Airbus A380 suppliers will see revenues deferred and noted that Goodrich in the US has already said the announcement will affect revenue and profits negatively, although not significantly.
The insurance sector was also under pressure today after Morgan Stanley cut target prices across the board following recent movements in capital markets and currencies. The broker said it has struggled to identify positive short-term solutions for UK insurance stocks despite the attractive valuations.
Morgan Stanley's therefore cut Royal & Sun Alliance Insurance Group, where the target price was reduced by 7.9% to 117p, in part because of the group's gearing to its pension scheme. The broker retained an underweight rating on the shares, which fell back 1p to 120.75p.
It also reduced its target price on Prudential by 4.9% to 647p, partly because of its exposure to the US dollar, while maintaining an equal weight stance on the stock.
Also in the news today was Tesco, down 4p at 325.75p, after an uninspiring trading update. The supermarket said its first-quarter like-for-like sales excluding petrol grew 4.5% in the UK, at the lower end of market expectations, while UK like-for-like sales including petrol grew 5.5%. Panmure Gordon repeated its buy recommendation and 400p target.
Royal Bank of Scotland lost 14p to 1,706p, weighed down by an HSBC downgrade to neutral from overweight following yesterday's trading statement. WestLB, however disagreed, upgrading its stance to buy from add.
Broker comment also affected the gainers, with positive effect on Lloyds TSB Group, which shot into the top spot, up 11.5p at 514.5p. Morgan Stanley upgraded the stock to overweight from equal-weight and raised its forecasts saying the bank could prove to be the top success story in the UK this year.
AB Ports jumped after a consortium involving investment bank Goldman Sachs Group announced that it has made a recommended £2.484 billion takeover offer for the group at 810p. AB Ports shares are up 61p at 838p on hopes of a counterbid.
