LONDON MARKETS: FTSE 100 Set To Break 5-day Losing Run
16 November 2017 - 9:54PM
Dow Jones News
By Sara Sjolin, MarketWatch
GKN slumps after CEO designate ousted
U.K. stocks rose on Thursday, boosted by a round of
well-received corporate updates and as buyers stepped into pick up
shares after a five-session losing streak.
On the economic docket, British retail sales fell less than
expected in October, helping lift the pound against both the euro
and dollar.
What markets are doing: The FTSE 100 index added 0.1% to
7,380.67, after ending at its lowest level since Sept. 28 on
Wednesday
(http://www.marketwatch.com/story/commodity-stocks-pull-ftse-100-toward-fifth-straight-decline-2017-11-15)
following five straight sessions of losses.
The pound bought $1.3190, up from $1.3170 late Wednesday in New
York. Against the euro, sterling strengthened to EUR1.1197 compared
with EUR1.1170 on Wednesday.
What's driving the markets: Traders were encouraged by a
positive trading day in Asia
(http://www.marketwatch.com/story/tencent-earnings-buoy-hong-kong-index-nikkei-looks-to-snap-loss-streak-2017-11-15),
where Japan's Nikkei snapped a six-session losing streak.
A slight recovery in oil prices early on Thursday helped lift
the FTSE's energy companies. West Texas Intermediate crude ,
however, erased its gain during the morning session, trading 0.1%
lower at $55.26 a barrel. The contract settled at its lowest level
in almost two weeks on Wednesday after data showed a surprise jump
in U.S. stockpiles.
Shares of BP PLC (BP.LN) (BP.LN) rose 0.5%, and Royal Dutch
Shell PLC (RDSB.LN) (RDSB.LN) climbed 0.2%.
The pound staged a turnaround to trade higher after the Office
for National Statistics said retail sales slipped 0.3% on the year
in October
(http://www.marketwatch.com/story/uk-retail-sales-rebound-beats-expectations-2017-11-16),
which was better than the 0.5% expected by economists, according to
FactSet. Month-on-month sales rose 0.3%, beating the 0.1%
forecast.
The report comes after data earlier this week showed the
unemployment rate remained at 4.3%
(http://www.marketwatch.com/story/uk-employment-drops-for-1st-time-in-2-years-2017-11-15)
and wages rose 2.2% in the three months through September, while
inflation stayed at a five-year high in October at 3%
(http://www.marketwatch.com/story/uk-inflation-stays-at-5-year-high-of-3-2017-11-14).
What strategists are saying: The positive start is "helped by
fresh gains in Asia, shrugging off several days of losses that
potentially puts an end to a commodity sector-inspired selloff,
giving bulls some hope of a turnaround. Sentiment has been helped
by oil finding support, offering respite to the key energy sector,"
said analysts at Accendo Markets in a note.
Stock movers: Shares of 3i Group PLC (III.LN) rose 2% after the
international investment manager it is on track to deliver another
strong year of growth in its private-equity portfolio.
British Land Co. PLC (BLND.LN) added 2% after the real-estate
company said it swung to a first-half profit.
Prudential PLC (PRU.LN) rose 0.8% as the insurer said it
continues to benefit from powerful demand drivers
(http://www.marketwatch.com/story/prudential-new-business-profit-rises-17-2017-11-16)
and its established platforms in Asia, the U.S., and the U.K. and
Europe.
On a downbeat note, shares of GKN PLC (GKN.LN) slid 6.3% after
the engineering group ousted its CEO designate Kevin Cummings amid
problems at the aerospace unit he ran.
Mediclinic International PLC (MDC.LN) lost 2.4% after the
private hospital company said it swung to a first-half pretax
loss.
Outside the FTSE 100, Royal Mail PLC (RMG.LN) inched 0.3% higher
after revenue rose in the first half
(http://www.marketwatch.com/story/royal-mail-profit-down-warns-on-letter-volume-2017-11-16).
(END) Dow Jones Newswires
November 16, 2017 05:39 ET (10:39 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Mar 2024 to Apr 2024
FTSE 100
Index Chart
From Apr 2023 to Apr 2024