Market update: US consumer confidence at four year high

US stocks closed lower yesterday with the Dow Jones down 0.7% and the S&P 500 falling 0.5%. The housing market continued to show signs of improvement with US home prices rising in September while consumer confidence rose to its highest level in more than four years. In stock news, ConAgra shares rose 4.7% after news that the US packaged food company bought private-label company Ralcorp for $5 billion in an all-cash offer. Ralcorp shares soared 26.4%.

In early morning trading both the FTSE 100 and the FTSE Eurofirst 300 are 0.3% lower. Shares in medical devices maker Smith & Nephew dropped 1.4% on news that it was to buy the privately held bioactive wound care company Healthpoint for $782 million in cash. Elsewhere, both Bunzl and Resolution lost ground, down 2.5% and 2.1% respectively, after analyst downgrades.