Market overview: Tesco and Burberry lead gains



LONDON (ShareCast) - 0923: Retailers such as Tesco (Xetra: 852647 - news) and Burberry are leading the pack this morning. Aviva (LSE: AV.L - news) is also near the top of the leader board; the insurer has said that it expects to be able to maintain its first half performance during the full-year. On the negative side of the ledger, Tate&Lyle and Land Securities are now lower after unveiling their first half results. Kazhakstan focused miner ENRC has announced that it will spend £2bn of an approximately £2.75bn five-year budget on five projects, including three in Congo. FTSE 100 (FTSE Index: EO100.FGI - news) up 23 to 5,814.

0841: What should the Monetary Policy Committee do? This is Barclays´s view: "Our baseline scenario for the economy is that activity will solidify into 2013, as household demand begins to grow once more and encourages some recovery in business investment. With inflation likely to stick above target, we would not expect further monetary loosening. However, the recovery is far from guaranteed. The recent purchasing managers´ indices (PMIs) suggest a more downbeat outlook, especially in Europe (Chicago Options: ^REURUSD - news) , where fiscal consolidation is likely to be significant drag on demand. The US fiscal cliff provides another source of uncertainty about the strength of global activity. Domestically (...) In the face of these risks, even if quantitative easing (QE) is halted this week, it will be far too soon to say the policy has run its course." FTSE 100 up 14 to 5,801.

0804: Bargain hunters have emerged after yesterday's shake-out, with resource stocks top of many shopping lists. Real estate (Euronext: SRE.NX - news) investment trust Land Securities is friendless, however, after revealing how much its recent property disposals have hit profits. Sector peer Hammerson (Euronext: HAM.NX - news) declines in sympathy. The trading update from sweeteners group Tate & Lyle (Dusseldorf: 408414.DU - news) has also left a sour taste in investors' mouths. The FTSE 100 is back above 5800, up 32 at 5,824.