Financial News

LONDON (ShareCast) - Shares in mining giant Xstrata (LSE: XTA.L - news) rallied as US brokers Morgan Stanley (NYSE: MS - news) and Citigroup (NYSE: C - news) upped their rating on the mining giant.

Morgan Stanley has upgraded Xstrata from "equal weight" to "overweight", noting that on a two to three year review, the stock represents "one of the most compelling risk-reward cases in our coverage, and could easily double again, in our view."

Citi, meanwhile, has shifted its recommendation from "hold" to "buy", as concerns about the balance sheet strength ebb away. "Over the next six months we expect growth to come back on the agenda," the US bank said, adding that it expects the stock to outperform its sector peers in the event of an economic recovery.

Also on the positive side, BAE Systems (LSE: BA.L - news) is wanted on reports that Saudi Arabia is to place a £5bn order for 72 Typhoon fighter jets.

Cruise operator Carnival (NYSE: CCL - news) forecast full year 2009 earnings per share will be in the range of $2.00 to $2.10 versus previous guidance range of $2.10 to $2.30 due primarily to higher fuel prices.

FTSE 100 - Risers Carnival (CCL) 1,520.00p +3.68% Cable & Wireless (CW.) 130.40p +3.16% Autonomy Corporation (LSE: AU.L - news) (AU.) 1,469.00p +2.44% BAE Systems (BA.) 343.75p +2.31% Man Group (LSE: EMG.L - news) (EMG) 281.25p +2.27% Lloyds Banking Group (LSE: LLOY.L - news) (LLOY) 68.50p +2.09% SABMiller (SAB (LSE: SAB.L - news) ) 1,254.00p +1.95% Xstrata (XTA) 656.00p +1.94%

FTSE 100 - Fallers Rio Tinto (LSE: RIO.L - news) (RIO) 2,073.00p -3.76% Next (NXT) 1,413.00p -3.35% Rexam (REX) 275.75p -3.33% InterContinental Hotels Group (Virt-X: IHG2.VX - news) (IHG) 598.50p -2.92% Whitbread (LSE: WTB.L - news) (WTB) 811.00p -2.82% Fresnillo (LSE: FRES.L - news) (FRES) 552.50p -2.81% TUI Travel (LSE: TT.L - news) (TT.) 224.75p -2.49% Smiths Group (LSE: SMIN.L - news) (SMIN) 664.00p -2.21%