LONDON MARKETS: FTSE 100 Steps Higher As Pound Falls On Disappointing U.K. Retail Sales
17 February 2017 - 11:24PM
Dow Jones News
By Victor Reklaitis, MarketWatch
Bottler Coca-Cola HBC's shares build on prior day's sizable
gain
U.K. stocks gained Friday, adding to their weekly advance,
boosted by the pound losing ground after discouraging data on U.K.
retail sales.
The FTSE 100 moved higher by 0.2% to 7,294.89, after trading in
the red in morning action. The rise put the blue-chip benchmark on
pace for a 0.5% gain for the week.
On Thursday, the index lost 0.3%, retreating from a one-month
closing high reached in the prior session.
The pound was trading at $1.2415, down from $1.2494 late
Thursday, as traders reacted to a January report on U.K. retail
sales. The report showed a month-over-month drop of 0.3%, missing
forecasts for a rise.
The retail sales number was "really weak," showing British
consumers are starting to feel the squeeze due to a pickup in
inflation
(http://www.marketwatch.com/story/uk-inflation-hits-2-year-high-beats-views-2017-01-17),
said Naeem Aslam, chief market analyst at Think Markets UK, in a
note.
"The net impact on the currency after the data was bad, and we
have seen traders putting more short trades against the
sterling-dollar pair," he added.
The FTSE 100 turned positive as sterling slumped. A weaker pound
often boosts the exporter-heavy index, as goods and services become
cheaper for holders of other currencies.
Investors also were digesting U.S. President Donald Trump's
lengthy press conference
(http://www.marketwatch.com/story/trump-attacks-media-during-lengthy-press-conference-2017-02-16)
on Thursday, in which he said he "inherited a mess" at home and
abroad, and blasted the news media.
Movers: Coca-Cola HBC AG's shares gained 2.5% for one of the
FTSE 100's biggest gains. The stock is building on Thursday's jump
of 4.9%, which came after the bottling company said profit rose
last year
(http://www.marketwatch.com/story/coca-cola-hbc-2016-profit-up-lifts-dividend-2017-02-16).
Shares in consumer-products giant Unilever PLC (ULVR.LN) rose
nearly 5%, with traders attributing the jump to takeover
speculation
(https://twitter.com/IGSquawk/status/832561533246926849).
AstraZeneca PLC (AZN.LN) (AZN.LN) rose 2.2% after the drug
company announced positive results from a trial
(http://www.marketwatch.com/story/astrazeneca-breast-cancer-drug-trial-positive-2017-02-17)
of its breast cancer treatment Lynparza.
Asia-focused bank Standard Chartered PLC (STAN.LN) gave up 2.9%
for the FTSE's largest loss.
(END) Dow Jones Newswires
February 17, 2017 07:09 ET (12:09 GMT)
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