14 July 2005, 10:35  London shares outlook - Higher on New York gains, good news from Apple, AMD

UK blue chips look set for opening gains this morning following a solid performance overnight on Wall Street, and strong performances today in Asia, supported by good news after-hours in the US from tech leaders Apple and Advanced Micro Devices, dealers said. Spread bettors IG Index expect the FTSE 100 index to open around 10 points higher at 5,255. The UK blue chip index closed 28.7 points firmer yesterday at 5,045.9, a fresh three year high. However trading could be slow with the alternate attractions of The Open teeing off at St Andrews this morning. The London Stock Exchange has also invited member firms to observe the two minute silence scheduled for 12.00 pm today in memory of the victims of the terror attacks last week in London. Overnight on Wall Street, the DJIA closed 43.50 points higher at 10,557, while the Nasdaq composite index ended up 0.96 at 2,144 supported by news of a narrower than expected US trade gap and as crude prices eased slightly. Oil prices slipped back below 60 usd a barrel in Asian trade this morning as concerns eased over US production in the Gulf of Mexico being disrupted by the latest tropical storm. The release of US government figures yesterday showing distillate inventories were on the rise also helped to keep a lid on crude prices. Meanwhile corporate news after-hours in the US was positive, particularly for the tech sector. Apple shares traded higher after the company reported above forecast third quarter results boosted by strong iPod sales. Advanced Micro Devices saw its shares add 3 pct in value after the chipmaker posted a surprise Q2 profit, beating analysts' expectations. And JDS Uniphase shares took on 5 pct after-hours as the fibre optics group said its fiscal fourth-quarter revenue will be above the midpoint of the 160-170 mln forecast range. Trading was bullish today in Asia, with the Nikkei 225 index at midday up 124.67 points at 11,784.51 lifted by the good news in the US tech sector. Meanwhile the Hang Seng ended its morning session 122.72 points firmer at 14,430.02 paced by property and banking stocks on expectations for upcoming first half results in the sectors. In London, however, once again corporate news will be at a premium today, with no results due from blue chips or second liners, and just some trading news the main focus.

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