FINANCIAL MARKET UPDATE 23/05/2016

The FTSE 100 is called to open 9 points higher at 6165

UK Gilt 10 Year Yield 1.4515 Spot Gold $1250.95 -1.55 Brent Crude $48.81 -0.27

$ per £ 1.4517

$ per € 1.1229

€ per £ 1.2928

U.S. stocks rose, with the S&P 500 rebounding from a seven-week low, led by a rally in technology shares amid ebbing anxiety over the potential for higher interest rates as early as next month. Applied Materials Inc. surged 14 percent after forecasting sales that may beat analysts’ estimates, spurring gains among tech companies. Chipmakers jumped the most since January, with Intel Corp. rising 1.8 percent. Apple Inc. increased 1.1 percent to its first weekly advance in five. Equities trimmed gains in afternoon trading as banks lost momentum after Treasuries erased losses, sending yields lower for a second day. The S&P 500 added 0.6 percent to 2,052.32, halting a weekly losing streak at three and regaining its advance for the year. The Dow Jones Industrial Average climbed 65.54 points, or 0.4 percent, to 17,500.94. It wasn’t enough to save the index from a fourth weekly loss, the longest stretch since October 2014. The tech-heavy Nasdaq Composite Index rose 1.2 percent. About 6.7 billion shares traded hands on U.S exchanges, 9 percent below the three-month average.

PRESS COMMENTARY

Axa is to ditch its tobacco investments, arguing that owning them clashes with its position as a health insurer, FT.

Britain will be plunged into a year-long recession if it votes to leave the EU, according to a bleak analysis of the short-term economic shock of a Brexit vote to be published on Monday by the Treasury, FT.

US IPOs: spluttering, FT (LEX).

COMPANY NEWS

Bayer AG made an unsolicited $62 billion all-cash offer to acquire Monsanto Co. to create the world’s biggest supplier of farm chemicals and genetically modified seeds, a proposed acquisition that would be the biggest corporate deal by a German company.

Axa SA, France’s largest insurer, said it will stop investing in tobacco and will divest 1.8 billion euros ($2 billion) of assets in the industry.

Legal & General Group PLC said it has acquired a 3 billion pounds ($4.35 billion) U.K. annuity portfolio from Aegon NV (AGN.AE).

Ryanair Holdings PLC posted a 43% rise in full-year net income but warned profit growth would slow and that concerns over terrorist attacks could weigh on ticket prices.

General Electric Co. signed an agreement with Vietnam's government to develop renewable energy in the country.

Boeing Wins $11.3B order for 100 737 MAX 200 airplanes from VietJet, the largest single commercial airplane purchase in Vietnam's aviation history.

De La Rue PLC (DLAR.LN) said that it has sold its cash processing business to a unit of private equity firm Privet Capital.

Toshiba Corp. said it would reduce its capital to offset losses on its balance sheet, the latest effort by the scandal-hit company to recover from its financial troubles. Source Quilter Cheviot.

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