Member Article

Next PLC soars following positive update

A new funding for lending scheme was launched today, in which the Bank of England will lend money at below market rates to banks, in the hope that this will get lend on to businesses and households in the real economy. The schemes introduction is timely, given that Nationwide reported today that house price fell 0.7% in July (the fourth fall in five months), and the number of new mortgage approvals were reported at their lowest level since 2010 on Monday.

Central bank actions were still the focus of much of the market’s attention, with the US’s Federal Reserve to conclude its two-day policy meeting later today, with investors hoping for evidence of a dovish stance from its Chairman Ben Bernanke. The same accommodative tone, or better still action, is also hoped from the ECB’s rate announcement tomorrow.

The FTSE 100 finished the day up 1.4% at 5712, the market shrugging off disappointing economic news in the UK’s July manufacturing PMI that came in at 45.4, from June’s 48.4. Next topped the list of London’s blue-chips, rising 6.5% following an upbeat trading statement in which it raised full year profit expectations. The drugs group Shire was the second strongest performer, following strong second quarter results which were boosted by US sales of its ADHD treatment. Shares closed up 4.8% to 1937p.

This was posted in Bdaily's Members' News section by James .