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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: zonder who wrote (32748)	6/27/2005 12:19:46 PM
From: mishedlo	Respond to of 116555

That has been my largest position since last November. I went way out with leaps over 1.5 years out. Cash is now my largest position. Mish

To: zonder who wrote (32748)	6/27/2005 12:44:45 PM
From: mishedlo	Respond to of 116555

Costly oil sears UK stocks, but resources cushion fall Monday, June 27, 2005 4:23:25 PM By Louise Heavens LONDON, June 27 (Reuters) - Britain's blue-chip shares fell steeply for the second session in a row on Monday, with fuel-hungry airline British Airways <BAY.L> the biggest casualty, after oil prices brushed record levels above $60 a barrel, stoking concerns about economic and corporate growth. Strength in integrated oil companies Shell <SHEL.L> and BG Group <BG.L> helped limit the fall, while gains in resources stocks, such as mining firm BHP Billiton <BLT.L>, added further backbone. The FTSE 100 index <.FTSE> ended down 35.5 points, or 0.7 percent, at 5,043.5, retreating from last week's 3-year highs around 5,120 points as investors worried about the long-term effects of high oil prices. The benchmark index has shed 1.4 percent in the past two sessions. Turnover was a 2.2 billion shares despite hefty trading in stock market debutante PartyGaming <PRTY.L>, whose shares surged on the first day of trading. British Airways <BAY.L> lost 5.4 percent even as its latest fuel surcharge increase kicked in. BA last Friday increased fuel surcharges on tickets issued in Britain from Monday because of further oil price rises. But strength in oil majors added a couple of points of upside to the FTSE 100, with Shell leading the pack with a 1.3 percent gain ahead of Tuesday's annual general meeting. "Oil is a raw material cost that will be felt across the board in terms of input costs for industrials. The beneficiaries are clearly the integrated oils and the E&P (exploration and production companies)," said Jim McCafferty Head of Research at stockbrokers Seymour Pierce. Among mid-caps shares in oil explorers Burren Energy <BUR.L> and Soco International <SIA.L> tacked around 2 percent each. Elsewhere on the upside shares in utility Centrica <CNA.L> gained 0.7 percent after investment bank Lehman Brothers raised its rating to "overweight" from "equal weight". A positive analyst note also lifted shares in miner BHP Billiton. Its shares rose 1.1 percent to 1,637p after Deutsche Bank reinstated its coverage with a "buy" stance and a target price of 800p on the stock. Deutsche said the miner was its top pick in the European large-cap sector owing to its mix of commodities and its exposure to booming Chinese demand. PARTYGAMING HITS JACKPOT Shares in online casino PartyGaming <PRTY.L> provided another bright spot as it listed on the London Stock Exchange <LSE.L>. The shares were priced at 116 pence each in its initial public offering, giving the firm a market value approaching 5 billion pounds, which would earn it membership of the FTSE 100 index <.FTSE> at the next quarterly review in September. Demand for the offer, said by dealers to be more than three times subscribed, spilled over into Monday's trade, sending the stock 11 percent above the IPO price to close at 129p. The offer is Britain's biggest flotation in five years. Retailers and media stocks dependent on advertising revenues sagged, rattled by concerns that higher energy prices, coupled with a wider spending slowdown, leaves less disposable income for shoppers to spend on the high street. Home improvements chain Kingfisher <KGF.L> lost 2 percent, while electricals seller Dixons <DXNS.L> fell 1.1 percent and Argos owner GUS <GUS.L> slipped 1.3 percent. "There's a general feeling that consumer spending is coming off. That's being felt in the media sector where advertising revenues are material," said Seymour Pierce's McCafferty. Ad agency group WPP <wpp.l> succumbed to the pressure, shedding 2.2 percent despite having earlier released a solid trading statement. Newspaper group Daily Mail & General Trust <DMGOa.L> and directories company Yell <YELL.L> both slipped more than 2 percent. fxstreet.com