Market overview: Travel stocks help limit losses

1630:Close Travel stocks rose on Monday, thanks to some positive news regarding the Ebola outbreak in the US, Nigeria and Spain. That helped to limit losses on the top flight index, which was also lent a helping hand by a move to the upside on Wall Street. Shares of Tesco also outperformed the wider market on reports that the company’s mishandling of its financial reporting may have been largely limited to the first half of the year. Oil related stocks on the other hand were again weighed down by slipping oil prices. Shares in ARM Holdings dropped ahead of the company’s Q3 results on Tuesday. Sentiment towards the technology sector soured on the back of poor results and or guidance from various firms in the space, including IBM and SAP. Just after the close of trading Brent futures could be spied retreating 1.26% to $85.11 per barrel on the ICE. FTSE 100 down 43 points to 6,267.

1513: According to retail analyst Nick Bubb Tesco will keep its power dry on Thursday as regards its turn-around strategy "and play down any rights issue plans". So will that tempt Sainsbury to have one on the back of its interims on 12 November, he asks. Bubb also points out how Tesco fell 6% last week while Sainsbury rose 7%.

1423: Analysts at Morgan Stanley have today upgraded their stance on the European consumer discretionary sector to ‘overweight’ from ‘neutral’. As a part of the re-jigging of its portfolio it has added Marks&Spencer to its European model portfolio list. They say that UK cyclicals are now more attractive investment propositions than at any point in the last year. They have also added Tullow Oil to its portfolio “to increase our Beta to the oil price.”

1324: As the offer is virtually all paper, both sides can benefit from the synergies, Canaccord Genuity analysts explained in a note to clients. They foresee synergies of £35m resulting from the transaction. There are also potential benefits to be had from the revenue side, they add, such as from the ability to sell Greene King beers into the Spirit estate. The new group, which they have christened Spirit King, will have “higher quality earnings, stronger FCF and better growth prospects than Greene King and Spirit currently offer as separate entities.” The broker has upped its price target on the shares to 950p from 800p.

1323: Shares of iBio are plummeting 22% before the opening bell on Wall Street.

1221: Shares of IBM are lower by 5% before the opening bell after reporting third quarter adjusted earnings per share of $3.68, which is well below the $4.32 forecast by analysts.

1038: Shares in Rolls-Royce are up 0.3% today as the stock attempts to bounce after Friday's 11% fall, after the company lowered its 2014 guidance for revenues. However, today's rebound has been limited by three broker downgrades; analysts at Liberum, Investec and JPMorgan Cazenove have all taken a more cautious view, removing their positive ratings.

1030: UK gross mortgage lending slipped 1% in September, to reach £17.8bn.

0915: Broker Davy cuts recommendation on Travis Perkins to 'neutral' from 'outperform'. The Irish broker sees "no compelling reason" for the stock to outperform over the remainder of the year. Raymond James has lowered its view on BG Group to 'market perform'.

0846: UK stocks have started week with slight losses, although Tesco is moving higher. Reports over the weekend indicated that the grocer’s misreporting of profits was largely limited to the first half of this past year. Daisy Group is an outstanding performer early on after the announcement of a management buy-out. Market commentary this morning seems to be highlighting France’s upcoming budget battles, as well as next weekend’s ECB stress test results. Traders are also expectant ahead of tonight’s results out of tech giant Apple. FTSE 100 down 18 points to 6,294.