LONDON MARKETS: FTSE 100 Ends At New All-time Closing High
October 12 2017 - 11:30AM
Dow Jones News
By Victor Reklaitis, MarketWatch
Sky's shares jump after earnings, while Standard Chartered's
stock slips
U.K. stocks rose to a record close Thursday, helped by a drop in
the pound that came on news of a stalemate in Brexit talks.
FTSE nabs record: The FTSE 100 index advanced by 0.3% to end at
7,556.24, achieving an all-time closing high, according to FactSet
data. It last finished at a record more than four months ago. The
gauge remained below a June intraday peak around 7,599.
The London benchmark has recently been boosted by a slide in the
pound and by renewed confidence that Prime Minister Theresa May can
hold on to cabinet support for her plans to take the U.K. out of
the European Union.
Thursday's jump came as the pound fell to $1.3172, down from
$1.3223 late Wednesday in New York, as traders fretted about a lack
of progress in divorce talks with the EU.
What strategists are saying: "The bullish move was achieved for
the wrong reasons, as the dip in the pound on the back of the
stalled Brexit talks helped the British index," said David Madden,
market analyst at CMC Markets UK, in a note.
Michel Barnier, the EU's chief Brexit negotiator, said Thursday
that not enough progress had been made
(http://www.marketwatch.com/story/brexit-negotiator-says-uk-and-eu-have-reached-a-stalemate-in-talks-2017-10-12)
to recommend talks move on to the future trade relationship between
the EU and U.K.
A weaker pound can boost the FTSE 100, as many of the index's
multinational companies make most of their sales in foreign
currencies.
Stock movers: Sky PLC's stock (SKY.LN) was among the notable
gainers, rising 1.4%. On Thursday, Europe's biggest pay-TV company
posted an 11% gain in a key profit metric for the first quarter of
fiscal 2018. Sky said new subscriptions were up 51% on the year and
it is on track to meet its full-year targets
(http://www.marketwatch.com/story/sky-earnings-up-on-51-rise-in-new-subscriptions-2017-10-12).
Sky's update "suggests things remain pretty hard in ad land, but
"these were pretty solid results," said Neil Wilson, a senior
market analyst at ETX Capital, in a note.
Standard Chartered PLC's stock (STAN.LN) was among the biggest
decliners, falling 0.9%. In a rare move
(http://www.marketwatch.com/story/imf-names-9-biggest-banks-that-warrant-heightened-attention-from-regulators-2017-10-11),
the International Monetary Fund, in its twice-yearly Global
Financial Stability Report, said the Asia-focused bank has a "weak
earnings" outlook. Credit Suisse analysts also have warned the
lender's current valuation is too generous.
Weekly and monthly performance: The FTSE 100 is up 0.4% for the
week and showing an October gain of 2.5%. It closed down less than
0.1% on Wednesday
(http://www.marketwatch.com/story/ftse-100-in-holding-pattern-with-record-high-in-sight-2017-10-11).
(END) Dow Jones Newswires
October 12, 2017 12:15 ET (16:15 GMT)
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