Hello traders!

In the US, stocks ended slightly lower after a fresh surge in oil prices, but broad optimism about the health of the economy helped limit the decline.

The Dow Jones Industrial Average fell 13.96 points to 10,609.11. The Nasdaq Composite was down 1.98 points at 2,088.13, while the S&P500 dipped 0.86 points to 1,216.10.

Crude ended up 90 cents at $59.37 a barrel in New York.

See you in the morning with the latest.....

G.

Good morning traders!

In Asia this morning the Hang Seng has just ended the morning session down 28.63 points at 13,917.14 while in Tokyo the Nikkei was recently trading up 5.1 points at 11,488.45.

Oil prices have been a major concern although the price eased back below $59 a barrel, having closed at $59.37 in New York last night.

Shares in AB Foods were upgraded to 'buy' at Merrill Lynch as the broker played down the risks of tomorrow's EU sugar reform statement.

Back with more in a moment....

Happy trading!

G.

Betfair, the UK-based betting exchange, is expected to decide next month whether to press ahead with a London flotation valuing the business at as much as 700m-800m, according to the Daily Telegraph.

MERSEY DOCKS UPGRADED TO 'NEUTRAL' VS 'REDUCE' AT UBS

ELECTROCOMPONENTS, PREMIER FARNELL STARTED AS 'IN-LINE' BY GOLDMAN SACHS

AFX UK at a glance share guide - 2
AFX


MARKETS

FTSE 1005,072.0, down 5.6

FTSE 250 7,335.7, down 19.2

DJIA 10,609.10, down 14.00

Nasdaq Comp 2,088.13, down 1.98

S&P 500 1,216.10, down 0.85

Tokyo: Nikkei closed at 11,488.74, up 5.39

Hang Seng midday 13,917.14, down 28.63

Gold 438.15 usd (438.15 usd)

Oil - Brent Aug 58.32 usd (57.76 usd)



BREAKING NEWS

* Warning on threat to quality of auditing; watchdog's report criticises conflicts if interest - FT

* Borrowing record of 8.7 bln stg could push taxes higher - Times

* Opec looks at output rise as oil near 60 usd - FT

* WILLIAM MORRISON names three new non-execs

* REGAL PETROLEUM surprises the market with the revelation that Frank Timis, its former chairman and chief executive, had promised to sell the group's Ukrainian gas assets without telling the rest of the board - FT



PRESS COMMENT

FT

THE LEX COLUMN comments on LLOYDS TSB, Hedge funds, Enron, Reliance, India's biggest private company

Express

SABMILLER (hopes it is close to announcing a 7 bln usd takeover of Colombian group Bavaria) - SHARE WHISPER: EASYNET GROUP (dealers reckon it could make more of an attractive target for France Telecom than CABLE & WIRELESS) - WHO'S DEALING: CARPHONE WAREHOUSE (boardroom selling)

Guardian

SHIRE PHARMACEUTICALS (bid target reveals promising trial results) - Z GROUP (joins AIM today)

Independent

THE INVESTMENT COLUMN: STANLEY LEISURE (seem fully valued), FISH WORKS (look worth a nibble), GW PHARMACEUTICALS (avoid) - Z GROUP (expect it to enjoy a strong maiden session today)

Telegraph

QUESTOR: LLOYDS TSB (pure yield investors will enjoy the income - there is scarce danger that the payout will fall- but all others should look elsewhere), UNIQ (better value elsewhere), WICHFORD (buy it for a safe yield and perhaps a bit of capital appreciation for the cherry on top)

Times

RUMOUR OF THE DAY: EURODIS ELECTRON (dealers suggest predator could be ABACUS GROUP) - DIRECTORS' DEALS: MAIDEN GROUP (director sells stock for 405,000 stg) - RENOLD (Steel partners, a US value investor, takes 3.06 pct stake) - TEMPUS: INMARSAT (get involved), GW PHARMACEUTICALS (avoid), LLOYDS TSB (the 7.5 pct income provides ample incentive to hold)

Mail

E-RETAIL (stages successful debut on AIM

Afternoon all