By Carla Mozee, MarketWatch
Vodafone looking at best month since November
U.K. stocks nudged higher Friday, with Vodafone PLC and retailer
Primark's parent among advancers helping to keep British blue chips
on track for a monthly advance.
The FTSE 100 was up 0.1% to 7,047.50, with energy, mining and
financial stocks moving higher. Also up were shares of Vodafone ,
by 1.4%. The mobile-phone services provider is open to a tie-up
with U.S. cable company Liberty Global (LBTYA), according to a
Reuters report Thursday.
Vodafone shares have rallied nearly 12% this month, after
Liberty's Chairman John Malone reportedly said last week that
Vodafone would be a "great fit" for Liberty's operations in Western
Europe.
Topping the blue-chip benchmark was Associated British Foods PLC
, up 2.5% after Goldman Sachs raised its rating on the Primark
operator to buy from sell. AB Foods also has sugar operations. The
roughly 17% underperformance of the shares so far this year "offers
an attractive entry opportunity in our view," wrote Goldman
analysts in a note.
For the month, the FTSE 100 is on track to rise 1.2%, which
would be a second-consecutive monthly gain, according to FactSet
data.
Still, the London benchmark's gain on Friday was blunted by
losses for industrial and consumer shares. Equipment-rental firm
Ashtead Group PLC fell 1.4%, adding to Thursday's decline, after
U.S. peer United Rentals Inc (URI) said activity in May had been
softer than it had expected.
In M&A news, U.S. data-center operator Equinix (EQIX) said
Friday it has reached a deal to acquire
(http://www.marketwatch.com/story/equinix-agrees-deal-with-telecity-2015-05-29-24852531)
U.K.-based peer Telecity Group PLC valued at 2.35 billion pounds
($3.6 billion). Telecity shares were down 0.3% on the FTSE 250
index.
Sterling: In the currency market, the pound (GBPUSD) fell
against the dollar, trading at $1.5275, compared with $1.5313 late
Thursday. Sterling stayed lower against the greenback in afternoon
trade following a report showing the U.S. economy contracted in the
first quarter
(http://www.marketwatch.com/story/us-gdp-turns-negative-in-first-quarter-again-2015-05-29).
The pound was facing a 0.5% decline versus the dollar this
month. "The technicals have taken complete control of the
pound/dollar throughout May, with the bears seeing the recent close
below $1.55 as an opportunity to exploit and price in further
declines," Jameel Ahmad, chief market analyst at FXTM, wrote in
emailed comments.
The economic outlook for the U.K. is attractive to traders, but
the Bank of England is "still at least a year from raising interest
rates, especially with their outlook on inflation being so
increasingly dovish," he said.
Looking ahead: Heading into the weekend, investors were watching
to see if Greece is making any headway on its aim to reach a deal
by Sunday with its creditors. An agreement would lead to the
cash-strapped country receiving its next round of bailout funds.
Overall, European stocks were lower Friday. Read: Greek optimism on
deal is misplaced, says German finance minister
(http://www.marketwatch.com/story/greek-optimism-on-deal-is-misplaced-says-german-finance-minister-2015-05-29)
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