| The Markets UK unemployment fell by 65,000 to 2.58 million in the three months to May according to the Office for National Statistics, a sign that the economy is gradually moving in the direction of a recovery. Nearly half of the jobs created during the period were accounted for by more than 32,000 people becoming self-employed. As a result, the UK unemployment rate slipped by 0.1 percentage points to 8.2% with analysts expecting this fall to be repeated in the three months to August as companies boost their workforces ahead of the Olympic Games. The government meanwhile unveiled a plan to underwrite 40 billion pounds worth of infrastructure investment in a bid to boost the economy. Chancellor George Osborne said the scheme would encourage the release of private sector capital to kick-start programmes which have been postponed due to lack of funds. 
At the London close the Dow Jones was up by 81.82 points at 12,887.36 and the Nasdaq was up by 30.79 points at 2,622.44.
In London the FTSE 100 gained 56.68 points to 5,685.77; the FTSE 250 finished 66.45 points ahead at 11,085.68; the FTSE All-Share rose by 27.46 points to 2,947.15; and the FTSE AIM Index declined by 0.76 points to 684.71. 
Broker Notes Northland Capital initiated coverage of Touchstone Gold (TGL) with a "buy" recommendation and 27.1p target price. The Columbia focused gold explorer is expected to produce a maiden resource estimate for its Rio Psecado project in the second half of 2012 and the broker forecasts a reserve of 1 million ounces. Northland added that the group will also begin a 10km-20km drilling programme at the site. The broker also pointed to the firm's Santa Rosa site which is located near a number of existing gold projects. Touchstone Gold shares were unchanged at 12.375p. Panmure Gordon reiterated its "buy" recommendation for Nichols (NICL) with a 760p target price. The soft drinks manufacturer will release its interim results on 26th July and the broker expects to see revenue growth of 6% to 53.5 million pounds, boosted by sales in the Middle East. However, challenging conditions in the UK market led the broker to anticipate a 110 basis point decline in gross margins to 47%. On the broker's earnings forecasts, the shares trade on a prospective multiple of 17.7 times, roughly in-line with peer AG Barr (BAG), but Panmure believes Nichols should trade on a premium due to its higher international exposure. The shares dropped by 20p to 682p. 
Shore Capital maintained its "buy" rating for Stagecoach Group (SGC), noting the company's strong share price momentum, which has outperformed the FTSE All Share by 11% since the end of May 2012. The broker believes that the public transport provider is capable of increasing earnings by 40% over the next three years, based on the prospect of rail franchise wins. Shore also pointed to the stock's defensive characteristics and the firm's strong cash generation. Stagecoach shares advanced by 4.7p to 283.7p. Blue-Chips In light of the current money laundering scandal, HSBC's (HSBA) chief of compliance, David Bagley has resigned. Outrage was sparked when the global bank was discovered to have laundered billion of pounds worth of money for drug cartels and terrorist organisations, including al-Qaida. The bank is now set to face a fine of up to 1 billion dollars (640 million pounds). HSBC shares inched down by 1.7p to 545.7p. Evraz (EVR) announced that operations at its Highveld Steel and Vanadium operations in South Africa have been suspended following the start of labour strikes. Unions have begun industrial action in response to the steel producer's plans to reduce fixed costs, which they feel will lead to job cuts, as well as the introduction of a new work schedule. The company noted that Highveld accounted for less than 1% of its total EBITDA for the 2011 financial year. The shares slipped by 0.5p to 250.1p. 
Water treatment company Severn Trent (SVT) reported that it is trading in-line with expectations, raising its customer prices by 5.2% in order to counteract reduced consumption. The group expects its Services division to achieve low single digit revenue growth in the full year, with profits to be impacted by investment in its Balpure water disinfection system. Severn Trent shares grew by 15p to 1,719p. BHP Billiton (BLT) achieved record iron ore production in Western Australia during the quarter ended 30th June, up 15% year-on-year to 40.9 million tonnes. The mining giant also achieved a 2% rise in annual metallurgical coal production to 33.2 million tonnes, with record output at its Illawarra project in Australia compensating for strikes and heavy rainfall in Queensland. The group also noted that six major projects begun production in the financial year. The shares climbed by 36p to 1,819p. Mid-Caps Food wholesaler Booker Group (BOK) reported a year-on-year rise of 3.9% in non--tobacco sales during the 12 months ended 22nd June, while tobacco revenues fell by 1.7%, which it attributed to increased duties. As a result, total revenues rose by 1.7%, in-line with the firm's expectations. Shore Capital maintained its view that the shares are overpriced, trading on a prospective earnings multiple of 19.9 times, adding that there are no obvious catalysts to accelerate the company's growth. Booker shares jumped by 3.65p to 89.9p. 
Shares in Homeserve (HSV) leapt by 20p to 187p on rumours that it has been approached by a number of private equity company with the view of a possible 1 billion pound takeover bid. It was also alleged that the group's chief executive Richard Harpin had been approached with an offer for his 12.1% stake in the business. The home insurance company rebuffed the rumours stating that "it has not, nor is currently, engaged in any discussions which could lead to a possible offer". London Stock Exchange Group (LSE) announced that it achieved revenues of 209.5 million pounds in the three months ended 30th June, up 10% on 2011's comparable period. Revenues from the information services division rose by 68%, benefiting from acquisitions, while turnover from capital markets fell by 15% due to subdued activity. During the period, the company launched its MillenniumIT service across three markets and five platforms. The shares slid by 11p to 1,002p. Small Caps, AIM and PLUS Wildhorse Energy (WHE) has signed a co-operation agreement with the Hungarian government to formalise the framework to develop underground coal gasification (UCG) technology in the country. The firm noted that both parties believe the deal could provide Hungary with an opportunity to develop its extended stranded coal reserves and potentially provide a blue-print for UCG products across the rest of Europe. Wildhorse shares galloped 0.5p higher to 5.125p. News that Leni Gas & Oil (LGO) is to divest from its Spanish assets for a cash consideration of 8 million euros sent shares in the natural resources company up by 0.0875p to 0.875p. The deal will see Leni part with the La Lora production concession and the Basconcillo, Huermerces and Valderredibles exploration licences. It is the intention of management to use the proceeds on existing operations, notably in Trinidad where an active work programme on the Goudron field is now under way. Confectionery and snack foods group Zetar (ZTR) posted a 5% decrease in sales to 128 million pounds for the year to April and a 17.5% drop in pre-tax profits to 5.5 million pounds, figures which were in line with management's expectations. Zetar's fall in sales was blamed primarily on the firm's strategic exit from low margin commodity snack products but also to a drop-off in Easter confectionery sales. In the 11 weeks since the period end however the group saw revenue jump 16% ahead of its 2011 comparable at 19 million pounds thanks to improving confectionery sales, 1.5 million pounds of which was directly attributable to the sale of Olympic Games branded products to retailers. Zetar shares inched 4.5p higher to 209p. 
Comments by management that the recruitment services market has been challenging, particularly in the first quarter of 2012, was enough to send shares in Work Group (WORK) 1.75p lower to 11.5p. The talent management firm reported a 4% drop in fee income to 6.2 million pounds for the six months to June but added it was still able to generate a small operating profit. Meanwhile, the company maintained a debt-free balance sheet with cash of 500,000 pounds, down from 1.3 million pounds at the end of 2011. The Mission Marketing Group (TMMG) was able to weather tough market conditions, the market communications business announcing that trading for the first half of 2012 was in line with management's expectations, with operating income and profit both ahead of 2011 figures. Meanwhile, the firm's net debt to earnings ratio fell below the board's target of 2 times during the first half of the year, while its net debt to equity ratio slid from 26% to 20%, the result of improved cash flow. Management added that as the business sees further reductions in its debt levels the likelihood that it will introduce a dividend next year increases. Mission Marketing shares climbed 2p higher to 28p. Austria focused miner Noricum Gold* (NMG) has built upon its impressive April update for the Schonberg project by unveiling further precious metals deposits at the mine. Highlights from Noricum's latest field work included mineralisations of 28.6 g/t gold, 44g/t silver and 3.57% copper. The findings were spread across eight ore veins with a 3 kilometre strike, one metre width and 350 metre depth. The news further bolsters the commercially viability of the mine and was enough to send Noricum shares 0.1p higher to 1.15p. * Noricum Gold is a corporate client of Rivington Street Holdings, the ultimate owner of UK-Analyst. | 
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