FTSE climbs higher, Sterling holds gains

European Stock Markets

The UK’s top share index climbed on Tuesday following a shaky start to the month, although mining giant Glencore (GLEN.L) fell after one of its subsidiaries received a U.S. subpoena. 

The pound rose on Tuesday as a rebound in risk appetite supported sterling and after a survey showed Britain’s construction industry enjoying its fastest growth in June in seven months.

The British currency rose 0.4 percent versus the dollar to as high as $1.3196, away from 2018 lows hit last week of $1.3050. Sterling made most of those gains before the construction survey numbers were released. 

The blue-chip FTSE 100 .FTSE index was up 0.3 percent at 7,571.59 points by 0855 GMT, making back some of Monday's 1.2 percent loss when concerns over global trade hit risky assets.

The mood was upbeat across the wider European equity trading landscape after German Chancellor Angela Merkel’s conservatives settled a row over migration that threatened to topple her fragile governing coalition late on Monday evening.

On the FTSE, consumer staples, health stocks and financials added the most points to the index.

Shares in IAG (ICAG.L) were among the top gainers, up 2.3 percent on the back of a supportive research note from Credit Suisse in which analysts raised their price target for the British Airways-owner, saying that they expect efficiency gains to drive up margins.

Miners, however, were a weak spot as Glencore (GLEN.L) dropped 12.2 percent to a one-year low. The miner said that a subsidiary had received a U.S. Department of Justice subpoena on compliance with money-laundering laws.

The broader FTSE 350 mining index .FTNMX1770 fell 3.2 percent. The sector has come under pressure from uncertainty over the United States’ trade dispute with China, which has kept a lid on underlying copper prices.

The FTSE 100 has dipped back into negative territory for the year, down 1.5 percent year to date, though it has managed to slightly outperform a 2.1 percent decline for the Euro stoxx .STOXXE index.

British mid caps .FTMC rose 0.4 percent, helped by gains in industrials and consumer stocks.

UK shares dragged down by disappointing earnings

European Stock Markets

Disappointing earnings updates among mid caps weighed on UK shares on Tuesday as investors awaited U.S. inflation data for clues on the speed on interest rate hikes in the world’s biggest economy.

The FTSE  was flat by 0901 GMT, while the mid cap index .FTMC fell 0.4 percent, dragged by a plunge in Greencore shares after the food manufacturer cut its 2018 profit guidance due to issues at its US business.

Investec placed its forecasts and price target under review, noting that even though commercial developments gave the group confidence that the financial performance will improve through into FY19 this was late then management had originally expected.

Greencore (GNC.L) was down 22 percent, the biggest faller among mid caps and set its biggest one-day loss ever.

Still among mid caps, TC ICAP (TCAPI.L) fell 5.6 percent after annual profits at the world’s largest interdealer broker fell short of analyst expectations.

On the FTSE, however, Antofagasta (ANTO.L) rose 2.7 percent following a well-received trading update.

The Chilean miner Antofagasta reported a sharp rise in full-year earnings thanks to higher copper prices and said it would raise its dividend by 177 percent.

In the heavyweight mining sector, Glencore (GLEN.L) and Randgold (RRS.L) both rose 1.6 percent, helping the FTSE offset weakness among consumer staple stocks.

Direct Line (DLGD.L) was the biggest faller on the FTSE with a downgrade at Deutsche Bank to hold from buy sending its shares d own 1.6 percent.

Elsewhere, tonic water maker Fevertree Drinks (FEVR.L) fell 4 percent after hitting a record high in the previous session as a 64 percent jump in full-year core earnings failed to excite investors.

Later in the session, investors will also keep an eye on finance minister’s half-yearly update on the public finances. Philip Hammond is expected to announce an improvement in the country’s slow economic growth outlook but no policy tweak is expected.

FTSE treads with little change as Trump softens tariff stance

European Stock Markets

UK shares were little changed on Friday after U.S. President Donald Trump softened his stance on trade tariffs, easing worries over a trade war that had weighed on equity markets.

The country's blue chip FTSE  benchmark index was flat at 0938 GMT, moving in a narrow range and line with the broader European market, while mid-caps added 0.28 percent as investors digested a number of earnings updates. 

Trump announced import tariffs on steel and aluminium but said Canada and Mexico would be exempt and that other countries could apply for exemptions, although details of when they would be granted were thin. 

The FTSE, which is down around 6 percent so far this year, was little changed after data showed that UK industrial output in February rose 1.3 percent but missed expectations for a 1.5 percent rise. 

Later in the session, investors will keep an eye on the U.S. jobs report for more clues on the pace of interest rate hikes in the world’s largest economy. 

On Friday there was little specific company news to capture investors’ attention.

The biggest FTSE gainer was NMC Health (NMC.L), which briefly touched a record high, up as much as 5.7 percent following a well received trading update earlier this week. The stock was up 3.1 percent. 

The UAE healthcare provider reported a 38.2 percent rise in annual net profit on Wednesday and said acquisitions this year could top the $641 million it spent in 2017. 

Vodafone (VOD.L) was a weak spot, down 0.6 percent, after Bernstein analyst downgraded the stock to market perform. 

On the midcap index, Renewi (RWI.L) fell 6 percent after the waste-to-product company said it would take an impairment charge following the review of contracts in its UK municipal division. 

Inmarsat (ISA.L) fell 5 percent after a quarterly update which was in line with expectations. Morgan Stanley analysts said comments around its government business were cautious, indicating that consensus expectations for 2019 revenue growth of 5 percent were too high. 

GVC Holdings (GVC.L) rose 3.3 percent after the online gambling firm saw full-year net gaming revenue rise 17 percent in 2017, helped by gains from the bwin.party businesses it bought three years ago. GVC is set to take over Britain’s largest bookmaker Ladbrokes Coral (LCL.L).

UK shares mixed as Reckitt results disappoint

European Stock Markets

British shares were mixed on Monday as weak results from Reckitt Benckiser (RB.L) underlined the murky growth outlook for big consumer goods makers. 

Banks extended last week’s gains on the back of rising bond yields. A sustained recovery in lending rates from historic lows would boost their profits -- the U.S. 10-year Treasuries yield rose to a four-year high last week. 

The UK's top share index .FTSE was little changed at 7,296 points at 1000 GMT, with Reckitt and other consumer staples makers the biggest drag on the FTSE, offset by gains in banks and in energy producers after oil prices hit their highest in nearly three weeks. 

Activity was relatively muted due to market holidays in China and the United States. 

Reckitt fell the most, down 5.7 percent. The maker of Durex condoms and its peers Unilever and Nestle have all disappointed with their quarterly results updates, hit by signs that they are struggling to maintain the pace of top-line growth. 

Some investors say prices of their branded goods now look unsustainably high compared to the “private labels” of big retailers. 

European consumer staple stocks .SCOST have fared worse only than telecoms .SXKP over the past six months as those concerns combined with a rise in bond yields that could eventually dim the appeal of their stable dividends. 

UK shares last week recovered part of the declines suffered in a sharp sell-off earlier in the month that was driven by rising bond yields. 

Many investors took the declines as an opportunity to buy shares in big UK-based multinational companies as the global growth picture still appears strong. 

JPMorgan strategists advised investors a week ago to add to their global equity holdings and reiterated the view on Monday. 

“We still believe that the correlation between bond and equity prices remains firmly inverse, i.e. that equities will tolerate higher yields,” they said in a note. 

Convenience retailer McColls (MCLSM.L) tumbled 5.6 percent after it said supply disruption caused by the collapse of wholesaler Palmer & Harvey had dented its sales.

FTSE greets new record as banks rally

European Stock Markets

A rise in banks and oil stocks boosted the UK’s top share index to a fresh record on Wednesday as a rise in bond yields supported financials across Europe. 

Britain's blue chip FTSE 100 .FTSE index was up 0.3 percent at 7,750.58 points by 0957 GMT, outperforming the broader European market, while mid caps .FTMC declined 0.3 percent.

British banks joined in a rally with European peers as bond yields rose.


Shares in Royal Bank of Scotland (RBS.L) led the banking sector, up 3.4 percent after broker Morgan Stanley upgraded its rating on the stock to “overweight”.

Morgan Stanley said that RBS offered the most resilience in an uncertain outlook.

Shares in peers HSBC (HSBA.L) and Standard Chartered (STAN.L) also gained more than 2 percent.
Wednesday was another day dominated by Christmas updates from retailers, with shares in grocer Sainsbury’s (SBRY.L) advancing 1.5 percent after it beat forecasts slightly in its Christmas trading update.

“Sainsbury’s has delivered reassuring trading through what, post the Argos acquisition, is its key quarter for sales and profitability,” analysts at UBS said in a note.

This continues a positive theme for food retailers over the festive period as shoppers resisted cutting back on food purchases despite inflationary pressures on the consumer.

Peer Morrisons (MRW.L) saw its shares rise in the previous session after its own update.

Elsewhere a well-received Christmas update sent shares in Ted Baker (TED.L) 8.2 percent to the top of the mid cap index.
 
Housebuilder Taylor Wimpey (TW.L) found itself at the bottom of the FTSE 100, however, down 3.6 percent on the back of a trading statement.

The housebuilder said that it saw its full-year results for 2017 to be in line with expectations.

Elsewhere a warning from the UK’s Financial Conduct Authority (FCA) put pressure on shares in spreadbetters, with IG Group (IGG.L) dropping more than 4 percent, Plus500 (PLUSP.L) down 4 percent and CMC Markets (CMCX.L) down 5 percent.

The FCA said that there are “areas of serious concern” in Britain’s contracts for differences (CFDs) market, following a review.

FTSE edges up, Old Mutual jumps after unit sale

European Stock Markets

UK shares caught up slightly on Tuesday with their European peers’ gains from the previous session with Anglo-South African financial services group Old Mutual leading the index after it sold its Buxton UK wealth business for $800 million.

The FTSE 100 .FTSE was up 0.2 percent compared with the pan-European STOXX 600's rise of 0.1 percent.

World markets are waiting for U.S. lawmakers to pass sweeping tax legislation, expectations of which pushed Wall Street to new record closing highs with investors betting on a boost on profits, share buybacks and higher dividend payouts.

Old Mutual (OML.L) led the index higher, rising 4 percent after it sold its UK wealth business, run by veteran fund manager Richard Buxton, to private equity firm TA Associates for 600 million pounds ($803 million).

The company, which started as an insurance company in Cape Town in 1845, has decided to break itself up as regulatory constraints make the company complex to run in its current form.

Financials added the most points to the index - HSBC (HSBA.L) rose 0.3 percent, Standard Chartered (STAN.L) 0.7 percent and Prudential (PRU.L) 0.2 percent.

London-listed spreadbetters IG Group (IGG.L) and CMC Market (CMCX.L) which plunged during the previous session after regulatory threats to parts of their business, were still trading down about 1 percent.

Acacia Mining (ACAA.L) added 0.6 percent after it said it would sell its 2 percent royalty over the Houndé Mine in Burkina Faso for $45 million to Sandstorm Gold Ltd SSL.TO.

British drugmaker Indivior (INDV.L), which makes drugs that treat opioid addiction, was slightly down, losing 0.2 percent, after announcing operations to amend and extended debt facilities.

In the world of small market capitalisation, price comparison website operator GoCompare.Com (GOCO.L) posted the best performance, up 4 percent, after it agreed to buy The Global Voucher Group, which operates MyVoucherCodes.co.uk, and its units for 36.5 million pounds in cash.

Cyclicals tug Britain's FTSE lower

The UK’s top share index fell back to a two-month low on Wednesday, hurt by renewed weakness in mining stocks and financials, while M&A activity was also in focus. 

Britain’s blue chip FTSE 100 index was down 0.1 percent at 7,317.63 points by 1001 GMT, outperforming a negative European market slightly on the back of a weaker pound. 

Financials took nearly 9 points off the index, with shares in HSBC, Lloyds and Barclays up to 0.8 percent lower.

Some analysts attributed the falls to profit-taking as the year-end approaches. The FTSE 100 has gained around 2.3 percent so far in 2017.

Shares in Intu Properties leapt more than 19 percent and were on track for their biggest one-day gain on record.

Shares in property peers British Land Company and Land Securities also rose 1.6 percent and 1.1 percent respectively.Among other standout movers shares in Saga dropped 24.8 percent on the back of a profit warning.

FTSE edges up as pound dips on Brexit deadlock

The UK’s top share index edged up on Tuesday, outperforming European peers as sterling slid in the wake of Prime Minister Theresa May’s failure to clinch a deal to open post-Brexit free trade talks with the European Union. 

The blue chip FTSE 100 index was up 0.2 percent at 7,351.38 points by 0953 GMT, while the pan-European Stoxx retreated by the same extent into negative territory. 

The fall in sterling since the June 2016 Brexit vote has given an accounting boost to UK blue chips that generate revenues in dollars, and a weak pound typically supports the FTSE.

Supermarkets posted by far the best performance of UK blue chips. with Tesco and Sainsbury rising 3 percent and 2.4 percent. 

A number of miners were in negative territory as base metals slipped into negative territory, with investors locking in profits on recent gains in nickel and copper.

Standard Chartered, with a 1.4 percent rise, was the top gainer among financials after JP Morgan raised its rating and included the stock in its EU bank top picks list. 

In the same sector, British lender Provident Financial shares collapsed 13 percent after the UK’s financial watchdog opened an investigation into Moneybarn, its car and van financing arm.

British movie theatre operator Cineworld Group Plc lost 3.7 percent after it said it reached an agreement to buy U.S. peer Regal Entertainment Group RGC.N for $3.6 billion.

FTSE dips on Korean worries as financials, housebuilders take a hit

UK shares opened lower on Wednesday along with other European bourses, following the path set by Asia and Wall Street where market sentiment was hit by simmering geopolitical tensions in the Korean peninsula.

At 0810 GMT, Britain's blue-chip FTSE 100 .FTSE was down 0.36 percent at 7,346.74 points, with financials taking the most points off. 

Standard Chartered (STAN.L) was the second biggest loser on the index with a 2.2 percent fall, while HSBC (HSBA.L), Barclays (BARC.L), Lloyds (LLOY.L) all fell between 0.4 and 0,7 percent. 

Life insurers Prudential (PRU.L) and Old Mutual (OML.L) were both down about 1.2 percent and Provident PFG.L, which was the biggest FTSE faller on Tuesday, was down 1.4 percent. 

Britain’s biggest housebuilder, Barratt Developments (BDEV.L), sustained the most losses, with a 4.3 percent fall, as it said during its results it would continue to monitor “carefully” the impact of Brexit on its business.

Peer Berkeley (BKGH.L), whose shares took a 3.4 percent hit, said the London property market continued to be impacted by uncertainty surrounding Brexit and a property tax hike. Other companies in the sector were also retreating, with Taylor Wimpey (TW.L) down 1.1 percent. 

Royal Mail (RMG.L) was down 0.8 percent after Britain’s Communications Workers Union (CWU) said it would ballot more than 100,000 of its members over industrial action. 

Easyjet (EZJ.L) was down 0.5 percent at 1150p after HSBC cut its target price to 1550p from 1600p.

Glaxosmithkline (GSK.L) was down 0.7 percent after Credit Suisse cut its target price to 1725p from 1775p. 

Micro Focus (MCRO.L) shares surged 8.1 percent and were by far the best performing stock on the British blue chip index after its third quarter results.