LONDON MARKETS: FTSE 100 Dips, But Barclays Gains On Brexit Reassurance
29 July 2016 - 6:39PM
Dow Jones News
By Carla Mozee, MarketWatch
FTSE 100 on course for July rise
U.K. stocks flipped in and out of losses on Friday, with
investors sifting through corporate earnings reports as they
received word of a slump in U.K. consumer confidence.
The FTSE 100 was up 0.2% at 6,733.16, setting the blue-chip
index on track for a 3.5% monthly gain. That would mark a second
straight monthly rise.
For the week, the gauge was poised for a 0.1% advance that would
extend its weekly winning run into a sixth week.
Movers: Shares of Barclays PLC (BCS) (BCS) topped the FTSE 100
by rising 4.2%. The banking heavyweight reassured investors about
its course of business in the wake of the U.K.'s Brexit referendum,
including plans to close "as soon as possible" non-core assets.
"We remain confident that it is the right plan for Barclays, and
see no reason to adjust it, or the pace of delivery, in light of
the vote by the UK last month to exit the EU," said Barclays Chief
Executive Jes Staley, in a statement.
Total income at Barclays fell 9% to GBP11 billion
(http://www.marketwatch.com/story/barclays-profit-takes-hit-from-asset-sales-2016-07-29-24853442)($14.49
billion) in the first six months of the year.
But Pearson PLC shares (PSON.LN) sank to the bottom of the
benchmark, losing 4.5% as the education specialist said half-year
adjusted sales fell 7% from a year ago
(http://www.marketwatch.com/story/pearson-books-loss-as-sales-fall-holds-dividend-2016-07-29).
Pearson left its dividend unchanged at 18 pence.
Also losing ground was Reckitt Benckiser Group PLC (RB.LN) ,
whose consumer brands include Lysol and Scholl, as shares fell
2.2%. First-half profit fell 19%
(http://www.marketwatch.com/story/reckitt-benckiser-profit-falls-sees-no-brexit-hit-2016-07-29),
largely because of a charge related to the South Korean market. The
company added that its "global footprint means we expect no
tangible impact from uncertainty over Brexit."
But U.K. consumer confidence appears to have taken a hit in July
following the Brexit vote. Market research firm GfK said its
consumer confidence gauge fell 11 points between June and July
(http://www.marketwatch.com/story/uk-consumer-confidence-sinks-post-brexit-2016-07-28),
the largest month-on-month drop since 1990.
(END) Dow Jones Newswires
July 29, 2016 04:24 ET (08:24 GMT)
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