YP75: Markets bounce back with hopes of good news from US
While investors have been concerned over a double-dip recession, hope that US retail sales are going to come in stronger than expected boosted sentiment.
In addition, investors are anticipating a successful round of European bank stress tests in which 91 banks will be covered – roughly 65 per cent of the European market.
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Hide AdWith some of Europe's most vulnerable banks on the list, and the feeling that the stress tests would not have been announced if many institutions were likely to fail, investor optimism is leading the way.
Good news greeted Spice, the utility support services group, last week as the company announced a five-year extension to its contracts with Electricite de France, EDF's Energy division to 2015.
While the Leeds-based company did not divulge any figures regarding the contracts, it did say they were of similar value to the previous contracts.
The extended contracts within the group's Freedom Division included that of the Major Substation Projects and Overhead Line Works which involve improving EDF's electrical distribution and infrastructure networks.
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Hide AdThe news was welcomed by chief executive Martin Towers which, in his words, gives the company five years of revenue visibility.
SIG, the European insulation supplier, reported a 4 per cent fall in sales, to 1.29bn, for the six months to June 30, compared with the same period in 2009.
The Sheffield-based company has suffered from the effects of unfavourable weather conditions in the UK and Europe and has seen sales struggle somewhat since the start of the year.
The specialist supplier has however seen net debt levels reduced with a figure of 227m at June 30, compared with 255m at December 31.
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Hide AdWhile many of the markets in which SIG operates are now starting to stabilise, management remain cautious over the prospects for the rest of the year.
Elsewhere, Premier Farnell, the international electronic products distributor, continues to see strong sales growth with sales seeing a 29 per cent jump year-on-year during June.
The Leeds-based company has had a good start to the year and looks well positioned to return activity levels to those seen prior to the recession.
The company is hoping for further growth from overseas electronic markets, including China and India, for which Premier Farnell distributes products.
Edward RH Marsden, Assistant Investment Manager at Brewin Dolphin, Leeds