Market overview: Shares rise despite renewed risks for Greece
1630:Close UK stocks ended the day higher led by gains, as a group, in miners. The negative reaction to the presidential elections in Greece was largerly limited to that country´s financial assets. Gilts, however, did draw a “safety bid” as a result. Athens was forced to call snap elections after PMs decided not to back the current government´s presidential candidate. Acting as a backdrop, speaking on the BBC Radio’s “Today” program ex-BoE Governor Sir Mervyn King said that raising rates now “would probably lead to another downturn”. FTSE 100 up 24 to 6,634.
FTSE 100
8,452.88
12:00 15/05/24
FTSE 350
4,645.43
12:00 15/05/24
FTSE All-Share
4,597.27
12:00 15/05/24
Health Care Equipment & Services
12,497.90
11:59 15/05/24
Industrial Transportation
4,367.31
12:00 15/05/24
International Distributions Services
278.80p
12:00 15/05/24
Smith & Nephew
1,024.00p
12:00 15/05/24
1236: Stock in Royal Mail continues to be the best performer after it was reported over the weekend the company appears interested in some of the large customer contracts held by now bankrupt rival City Link.
1158: "Tough luck... Greece will have snap elections in 4-6 weeks," says Berenberg analyst Holger Schmieding. He posits that prime minister Samaras has "a fighting chance" to win, but the odds are in favour of ultra-left Syriza, current poll leaders. He sees a 55% probability that Syriza will win the snap elections, but a 45% probability that a Syriza-led coalition might ditch their wilder promises and pursue sensible if unpopular policies instead, leaving a 55% probability that "Syriza would push Greece into a serious crisis" that could "potentially catapult Greece into a messy default within the euro or even out of the euro". Taken all together the analysts sees 30% that "Greece may descend into a new deep crisis with potential euro exit beyond the inevitable bout of near-term uncertainty now. That is a significant risk."
1128: Greek 10-year sovereign bond yields are now 67 basis points higher at 8.63%. However, European equities are now bouncing back following an initial move lower, with the Cac-40 joining the top flight index in the blue. Greek PM Samaras has called for snap elections on 25 December. FTSE 100 up 19 to 6,629.
1059: The Footsie is holding on to slight gains even as its main European peers succumb to the selling pressure as the results of this morning´s Greek presidential vote trickle in. As one might expect, periphery stocks are the worst hit at the moment, although the German Dax-Xetra is also to be seen moving lower by a full percentage point. FTSE 100 up 1 to 6,610.
1044: According to the official results just out, only 168 Greek MPs voted in favour of the government´s candidate for president, falling short of the 180 ballots needed. Under current Greek law, parliament must be adjourned in the next ten days and snap general elections must be called for no later than 21 days following the above announcement.
0930: Miners are leading early gains. On Sunday, Xinhua News reported on new regulations from China´s central bank which in effect would relax the rules for the calculation of banks´ deposits while at the same time waiving some reserve requirements. Shares in Smith & Nephew could again be seen climbing higher on the heels of reports last week that US group Stryker Corp. was planning a takeover bid for the British medical-device maker.