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LC: Markets: Banks lead FTSE 100 recovery
 
It reported a 74.5% year-on-year rise in platinum sales in the three months end-June, due to lower output in the same period the year before. Meanwhile, its overall tonnage mined in the quarter stood at 2.5 million tonnes - a drop of 6.2% on the previous year.

Looking ahead, the platinum miner upped its production guidance from an annual increase of around 8% to 11%, having clarified the impact of disruption at its operations in Karee.

15:37 - Shares in FTSE 250 engineering firm Meggitt (MGGT) received a boost after the firm delivered its first contract for flexible blast-resistant fuel bladders in a ground vehicle.

The bladders have been installed in the BAE Systems (BA.) Bradley Fighting Vehicle as part of the BUSK III and Survivable Fuel Cell package, a series of "rapid development survivability improvements" designed for the urban battlefield.

The initial contract is worth $12 million (£7.4 million) and Meggitt said further contracts are anticipated as the rest of the fleet is upgraded.

15:14 - The FTSE 100 (UKX) launched a remarkable turnaround on Thursday, recovering from hefty falls to stand firmly in positive territory in afternoon trading.

London's top share index was up 42 points at 5896, with Barclays (BARC) heading a strong banking sector to sit top of the winners' board.

On the other side of the coin, a disappointing reaction to first-half results meant Capita (CPI) was bottom of the pack.

At a glance...

Commodities

Gold: $1,597.10

WTI crude oil: $99.00

Currencies

GBP/USD: 1.6253

GBP/EUR: 1.1343

EUR/USD: 1.4341

14:58 -Settlement in the eurozone over Greek's bail-out and a buoyant figures from Morgan Stanley (MS) helped Wall Street notch up gains on Thursday.

The two snippets of news helped offset a rise in initial jobless claims.

In response, the Dow Jones rose 97 points to 12668, the Nasdaq climbed nine to 2823 and the S&P 500 leapt 11 to 1337.

14:32 - Increased first-half sales and profit came in spite of "demanding market conditions", Howden Joinery (HWDN) announced on Thursday.

The FTSE 250-listed kitchen cabinet business reported that pre-tax profit rose from £21.6 million to £23.5 million, with group revenue increasing from £324.7 million to £341.7 million.

Management's expectations for the year are unchanged, it said, with market conditions set to remain challenging.

14:07 - Property investment trust London and Stamford (LSP) said it is determined to maintain its disciplined criteria to investment in a very challenging economic environment and added that it had secured £84.8 million of further investment during the period.

Highlights during the period from April to 20 July include the acquisition of One Carter Lane, London, EC4, for £75 million and Unit 5110 at Magna Park for £9.8 million from Nippon Express.

It also noted the sale to Green Park Investments of a 50% equity interest in 10 of the distribution assets for £41.5 million.

The final dividend of 3.3p for the year to the end of March was paid on 7 July, bringing the total dividend to 6.3p per share - a 43% increase on 2010.

13:44 - Investors were unimpressed with the first-half results from outsourcing giant Capita Group (CPI).

The firm's shares fell despite it delivering underlying pre-tax profits up 7% to £174 million in the six months to the end of June. Underlying operating profit was up 8% at £193 million and turnover increased by 3% to £1.4 billion.

The interim dividend is up 9% at 7.2p.

Analysts at Panmure Gordon recommended the stock as 'buy', with a target price of 800p, while Caroline de La Soujeole at Seymour Pierce sets a lower target of 770p.

13:16 - Third-quarter group revenue at drinks maker Britvic (BVIC) increased by 12.2%, thanks to the acquisition of Britvic France, while weaker consumer spending hit its UK and Irish operations.

The FTSE 250-listed firm said the contraction in the UK and Ireland soft drinks markets in the last four weeks of the quarter combined with strong previous-year comparatives to cause a slow down.

Chief executive Paul Moody said the board was confident it would hit its targets, but warned: "We continue to be cautious about the challenging trading conditions and the impact of consumer sentiment in our largest markets as we move into the final quarter of the financial year."

12:57 - In a day dominated by eurozone matters, the pound's reaction to June's UK retail sales was muted, with only marginal gains made against the dollar and yen.

The retail sales figures for June came in better-than-expected, showing a high street bounce back of 0.7% for the month, driven by a 1.1% increase in non-food sales.

For more on the pound's muted response to the data and disappointing public sector finance figures, read: Retail sales figures fail to boost sterling.

12:28 - Horizonte Minerals (HZM) found favour with investors on Thursday after continuing to generate high-grade nickel intercepts at its Araguaia project in Brazil.

The AIM-quoted explorer said the best intersection was 2.25% nickel over 17.3 metres from infill drilling at the Pequizeiro target, while other high-grade intersections included 15.6 metres at 1.97% nickel and 13.8 metres at 1.96% nickel.

For more on the news that sent shares almost 6% higher, read: High-grade intercepts boost Horizonte.

11:59 - The FTSE 100 (UKX) slipped firmly into the red on Thursday, with concerns over the details of Greece's eurozone bail-out prompting investors to flee.

London's benchmark share index was down 46 points at 5807, with Xstrata (XTA) leading a weak mining sector lower, while AstraZeneca (AZN) tried to provide an antidote to the gloom following US approval for its Brilinta drug.

Will Hedden, sales trader at IG Index, added: "A slight uptick in gold and a strengthening Swiss franc make the other side of the coin to a fall in equities. This opposing safe-haven relationship has been prominent for some time, and they should continue to oppose each other whichever way things go today at EU HQ."

At a glance...

Commodities

Gold: $1,598.70

WTI crude oil: $97.44

Currencies

GBP/USD: 1.6147

GBP/EUR: 1.1408

EUR/USD: 1.4152

11:34 - Mitchells and Butlers (MAB) admitted that its short-term outlook remains uncertain following a weakening in consumer expenditure in its market over the last couple of months.

The pub operator, which owns the likes of Harvester and All Bar One, said total company sales in the 42 weeks to 16 July were down 9.3%.

Meanwhile, retained estate operating margins are expected to be slightly below last year as a result of continued input cost pressure, increased promotional activity and the implementation of a new sales and operational initiatives.

11:05 - Shares in Halfords (HFD) fell on Thursday morning after the retailer posted a fall in first-quarter sales as a strong performance in cycling was offset by declines in car enhancement and maintenance product sales.

The group, which has 466 shops in Britain and Ireland, said sales at stores open over a year fell 1.1% in the 13 weeks to 1 July, compared to an increase of 0.8% in the nine weeks to 3 June.

For more on its results and what recommendations analysts are holding on Halfords and sector rival Kingfisher, read: Retail sector endures contrasting fortunes.

10:44 - Computacenter (CCC) has acquired a majority stake in Swiss IT service provider DAMAX.

The UK-listed provider of IT infrastructure services said the deal will enable it to strengthen its long-term relationships with customers present in Switzerland.

It has acquired 80% of the equity, as well as over CHF2 million net cash on the balance sheet for a debt-free consideration of £5.4 million, it said.

10:21 - The euro rallied ahead of the eurozone summit on Thursday, after overnight news of an agreement between Germany and France on how to tackle the Greek debt crisis.

The single currency was higher against all its major counterparts, tipping over the 1.4200 resistance point against the dollar to sit at 1.4252.

For the full story, and why analysts are urging for a speedy resolution to the talks, read: Euro higher on French and German accord.

10:01 - Shares in AstraZeneca (AZN) were on the rise in early trading today after the drugs Goliath anounced the US Food and Drug Aministration had given its approval to its Brilinta drug.

David Brennan, chairman of the FTSE 100-listed firm, said the news "represents a significant milestone", with the firm focusing on working with other authorities over the next 12 months to enable patients requiring the drug to receive it.

Brilinta is a tablet used to reduce the rate of heart attack and cardiovascular death in adults with acute coronary syndrome.

09:34 - Russian-focused gold miner Petropavlovsk (POG) unveiled better-than-expected gold production for the first half of 2011, leaving it firmly on track to hit its full-year target.

The FTSE 250-listed company said total attributable production for the six months ended 30 June amounted to 219,100 ounces, some 32% higher than the same period of 2010 and marginally ahead of the group's estimate.

For the full story, read: Petropavlovsk on course to hit full-year output target.

09:06 - The FTSE 100 (UKX) sidled slightly lower in opening trade on Thursday, with investors not knowing which direction to take after a mixed performance on Wall Street.

London's top share index shed 15 points to stand at 5837, with Capita Group (CPI) the worst performing stock of the morning after losing over 4%.

Meanwhile, the winners' table was headed up by AstraZeneca (AZN), followed by the banks.

Christopher Purdy, sales trader at Spreadex, said: "Banks are the most actively traded sector this morning, with Barclays (BARC) and Lloyds Banking Group (LLOY) up 2.1% and 1.76% respectively and high on volume for this early in the session."

Kicking off a lively day on the company reporting front, retailer Kingfisher (KGF) was also on the front foot despite unveiling a 0.5% drop in like-for-like sales in the 11 weeks to 16 July.

The company admitted that conditions in the second quarter were, as anticipated, tougher than the first quarter which had benefited from favourable weather.

Chief executive Ian Cheshire described it as "testing times for retailers, particularly in the UK", with the country's like-for-like sales down 5.5% on a like-for-like basis.

However, operations in France offered the company some respite, with like-for-like sales rising 3.7% in the period.

US markets...

US stocks closed lower on Wednesday, after spending much of the session drifting between slight gains and losses.

The tech stocks proved a drag on the Dow Jones, causing it to fall 20 points to 12,567. Meanwhile, the Nasdaq slipped 12 points to 2814 and the S&P 500 dipped one point to 1325.
Source