LONDON MARKETS: U.K. Stocks Break 2-day Losing Streak After Pound's Mini 'flash Crash'
20 May 2017 - 2:24AM
Dow Jones News
By Sara Sjolin, MarketWatch
Hikma Pharmaceuticals cuts revenue guidance
U.K. stocks on Friday closed higher for the first time in three
sessions, boosted by a mini "flash crash" in the pound and a
rebound in U.S. and Asian equities overnight.
The FTSE 100 index rose 0.5% to end at 7,470.71. The move left
the index up 0.5% for the week, a fourth consecutive weekly
advance.
The benchmark on Thursday slid 0.9%
(http://www.marketwatch.com/story/ftse-100-extends-trump-spurred-drop-ahead-of-retail-sales-report-2017-05-18),
weighed by a pop in the pound above $1.30 and fears that
controversies surrounding the White House would derail U.S.
President Donald's pro-growth agenda.
Read:Here's how impeachment works -- and why Trump is safe for
now
(http://www.marketwatch.com/story/heres-how-impeachment-works---and-why-trump-is-safe-for-now-2017-05-17)
"Unlike Tuesday to Thursday, which saw a parade of heavy-hitting
U.K. data, [Friday's] economic calendar is rather barren," said
Connor Campbell, financial analyst at Spreadex, in a note.
"That leaves investors free to mull over Trump's various
misdeeds, and whether or not they want to get back on board a set
of Western indices that, in the grand scheme of things, haven't
travelled too far from their highs," he added.
Washington concerns appeared to be a bit on the back burner for
now and investors instead focused on a sharp slump in the pound
that happened late Thursday. Sterling suddenly plunged below $1.29
from as high as $1.3048 earlier in the day in what traders
described as mini "flash crash."
"Particularly against the dollar, the pound was already looking
a little unstable around $1.30 and yesterday's mini crash has done
little to convince me otherwise. We've seen a lot of consolidation
in the pair overnight, I wonder whether we'll see one more burst
before the week is out," said Craig Erlam, senior market analyst at
Oanda, in a note.
The pound later recaptured the $1.30 level, buying $1.3022
compared with $1.2943 late Thursday in New York.
A positive tone coming from U.S. markets on Thursday also helped
spur an upbeat mood in Friday's session in Europe. After logging
their worst loss since September, U.S. stocks on Thursday closed
higher
(http://www.marketwatch.com/story/fragile-start-ahead-for-us-stocks-as-political-concerns-weigh-heavy-2017-05-18)
as positive economic data offered a glimmer of optimism. Asia also
ended mostly higher
(http://www.marketwatch.com/story/asia-pacific-stocks-stabilize-after-uneasy-week-of-trading-2017-05-18).
U.S. stocks on Friday
(http://www.marketwatch.com/story/wall-street-aims-for-another-positive-session-as-us-politics-take-a-breather-2017-05-19)
rose, but key indexes remained on track for weekly declines.
Movers: Shares of Hikma Pharmaceuticals PLC (HIK.LN) swung
higher to end up 2.1%. They had dropped earlier in the session
after the drugmaker cut its 2017 revenue guidance
(http://www.marketwatch.com/story/hikma-cuts-revenue-guidance-for-2017-2017-05-19)
due to a delay in the launch of the generic version of
GlaxoSmithKline PLC's (GSK.LN) (GSK.LN) Advair Diskus this
year.
Energy companies rose as oil prices climbed
(http://www.marketwatch.com/story/optimism-ahead-of-opec-meeting-drives-further-gains-for-oil-2017-05-19)
on optimism major oil producers will agree to extend production
cuts at the closely watched Organization of the Petroleum Exporting
Countries meeting next week. Shares of BP PLC (BP.LN) (BP.LN) added
0.7% and Royal Dutch Shell PLC (RDSB.LN) (RDSB.LN) gained 0.2%.
(END) Dow Jones Newswires
May 19, 2017 12:09 ET (16:09 GMT)
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