LONDON MARKETS: FTSE 100 Marches Higher After BP, StanChart Earnings
26 April 2016 - 9:53PM
Dow Jones News
By Sara Sjolin, MarketWatch
Mining shares fall after China clamps down on commodity
speculation
U.K. stocks tried to shake off recent losses on Tuesday, moving
cautiously higher after well-received earnings reports from BP PLC
and Standard Chartered PLC.
The FTSE 100 index rose 0.3% to 6,277.79, after slumping 0.8% on
Monday
(http://www.marketwatch.com/story/ftse-100-in-the-red-as-mining-shares-slump-2016-04-25)
and ending at the lowest close since April 12.
Shares of Standard Chartered PLC (STAN.LN) led gainers on
Tuesday, surging 11% after the bank said last year's spike in bad
loans eased in the first quarter
(http://www.marketwatch.com/story/standard-chartered-shares-rise-as-bad-loans-ease-2016-04-26).
Barclays PLC (BCS) (BCS) gained 0.7% after news Bob Diamond's
Atlas Mara Ltd. is considering a bid for the bank's Africa business
(http://www.marketwatch.com/story/atlas-mara-considering-bid-for-barclays-africa-2016-04-26).
Diamond was chief executive at Barclays until 2012 when he resigned
amid an interest-rate rigging scandal.
Whitbread (WTB.LN) rose 3.2% after the owner of Costa Coffee and
Premier Inn raised its dividend by 10%
(http://www.marketwatch.com/story/whitbread-profit-up-5-raises-dividend-by-10-2016-04-26)
and reported a 5% rise in pretax profit for the year.
BP (BP.LN) (BP.LN) climbed 4.4% after the oil giant reported
underlying earnings ahead of forecasts
(http://www.marketwatch.com/story/bp-posts-loss-but-underlying-earnings-beat-views-2016-04-26).
Chief Executive Bob Dudley said BP is "driving toward our near-term
goal of rebalancing" cash flows.
Peer oil group Royal Dutch Shell PLC (RDSB.LN) (RDSB.LN) slipped
0.2% ahead of its earnings report due Wednesday next week.
Miners, however, weighed on the London benchmark in Tuesday's
trade as Chinese efforts to calm a recent rally in commodity prices
were seen as taking a toll on sentiment. The Financial Times
reported that Chinese authorities are clamping down on speculative
trade
(http://www.cnbc.com/2016/04/25/china-clamps-down-on-commodities-frenzy.html)
in the commodity markets after activity surged in recent days.
Shares of Glencore PLC (GLEN.LN) (GLEN.LN) lost 1.6%, Rio Tinto
PLC (RIO) (RIO) (RIO) fell 0.8%, and Fresnillo PLC (FRES.LN)
dropped 0.8%.
The pound continued its march higher, soaring to a 10-week high
against the dollar
(http://www.marketwatch.com/story/pound-jumps-to-10-week-high-as-brexit-fears-ease-2016-04-26-6103015).
Sterling traded as high as $1.4579 compared with $1.4483 late
Monday in New York.
"Between [U.K. Chancellor of the Exchequer] George Osborne's
200-page dossier on the risks of leaving the EU, Barack Obama's
warning that a trade deal wouldn't come easy or fast, and the sheer
lack of anything from the 'leave' campaign, the odds of a Brexit
have fallen considerably, which the pound is benefiting greatly
from," said Craig Erlam, senior market analyst at Oanda, in a
note.
Read:Brexit looks less likely after Obama's pro-EU comments
(http://www.marketwatch.com/story/obamas-brexit-comments-spark-sharp-rise-in-pro-eu-betting-2016-04-25)
(END) Dow Jones Newswires
April 26, 2016 07:38 ET (11:38 GMT)
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