Gilts
Yields on longer-dated gilts fell by up to nine basis points as falling stock markets boosted the appeal of low-risk debt. The September gilt future rose 50p to £116.28, in line with the equivalent bund contract. Prices of two-year gilts were falling and yields rising amid expectations that the Government will raise interest rates next year.
Rumour of the day
Thomas Cook fell only ¼p to 214¼p, despite worries about Arcandor, its 52 per cent shareholder, which is close to administration after the German State rejected its rescue plea. It is said that the administrator will be able to sell the shares in a placing, since the tour operator is saying that its aircraft are full and there are no signs of increasing cancellations.
Deal of the day
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Dean Moore, finance director at N Brown, sold 86,650 shares, 40 per cent of his holding, in the online and catalogue retailer at 252p each. N Brown fell 8¾p to 245p. It has risen 21 per cent in the three months since it unveiled strong full-year results and said that sales were growing amid booming online demand. A trading update is due on July 7.
Bet of the day
The increased value of the US dollar has led to a decline in the price of gold as the metal, a traditional hedge of the dollar, loses investment appeal. Can the dollar continue on its winning streak and send the price of gold down further? Gold traded at $948.20 an ounce yesterday, down 0.69 per cent. WorldSpreads offers a rolling spot spread of $948.0-$948.5.
Tiddler to watch
Marwyn Value Investors rose 3p to 56p after “buy” advice from FinnCap, which said that the 25 per cent discount to April net asset value was unjustified. The small-cap fund’s biggest holdings are Concateno, the drug-test provider, which has agreed a bid at a premium, and Advanced Computer Software, whose price has soared.