LONDON MARKETS: FTSE 100 Finds Higher Ground, As Miners Find Cheer In China Data
March 14 2018 - 05:54AM
Dow Jones News
By Carla Mozee, MarketWatch
U.K. large-cap stocks moved higher Wednesday, as gains for
Prudential PLC and mining shares helped the market push past the
overhang from the firing of U.S. Secretary of State Rex
Tillerson.
Miners were on the rise after data showed China's industrial
production grew faster than expected in early 2018, helped by
strong overseas demand for Chinese goods.
How markets are moving
The FTSE 100 index was up 0.2% at 7,152.64, after tilting lower
in the opening stages of the session. The basic materials group
topped advancing sectors, but oil and gas and utility shares
lagged. On Tuesday, the London benchmark fell 1.1% ().
The pound bought $1.3947, down from $1.3962 late Tuesday in New
York. Sterling on Tuesday leapt 0.4% against the greenback.
What's driving markets
At the open, London's blue-chip stocks looked set for a third
straight loss, after logging a steep fall in the prior session.
That reflected declines for European and Asian stocks after the
unexpected firing of Tillerson
(http://www.marketwatch.com/story/tillerson-out-as-secretary-of-state-as-trump-taps-cia-chief-pompeo-2018-03-13)
raised questions about the future tone of U.S. foreign policy. In
addition, reports late Tuesday said the White House is looking at
imposing up to $60 billion in tariffs on Chinese goods, stoking
fears about global trade wars.
But an early rise for the U.S. dollar against the pound helped
lift the FTSE 100. Sterling strength can hurt shares of
London-listed multinational companies, which make the bulk of their
earnings overseas.
The FTSE 100 also revived as mining shares gained after the
Chinese industrial data, which signaled that China's economy
expanded faster than expected
(http://www.marketwatch.com/story/chinas-exports-fuel-surprise-growth-in-economy-2018-03-14)
in the first two months of 2018, as exports rose. China is a major
buyer of industrial and precious metals.
Stock movers
Among mining shares, Anglo American PLC (AAL.LN) rose 2.2% and
Antofagasta PLC (ANTO.LN) picked up 2%.
Prudential PLC (PRU.LN) leapt 5% after the financial services
company saying it will spin off M&G Prudential
(http://www.marketwatch.com/story/prudential-to-demerge-mg-arm-2018-03-14).
Following that move, M&G Prudential will be an independent
provider of savings and investment services.
Wm. Morrison Supermarkets (MRW.LN) fell 1.1% even as the company
raised its final dividend to 4.43 pence a share
(http://www.marketwatch.com/story/morrisons-fy-profit-rises-does-special-dividend-2018-03-14)
and said fiscal 2018 pretax profit rose.
"Despite Morrison's making all the right noises, the share price
dropped in early trade, with investors opting to book profits after
a strong run up into the release," said Fiona Cincotta, senior
market analyst at City Index, in a note.
What strategists are saying
"Personnel issues in the White House left investors nervous over
the direction of the Trump administration for a second time in so
many weeks," said Jasper Lawler, head of research at London Capital
Group, in a note.
Tillerson was "often considered the voice of reason in a
sometimes very chaotic White House," said Lawler. "With Tillerson
out the door, the market is assuming that Trump is aiming for a
more aggressive foreign policy -- enough to send a chill through
the markets."
(END) Dow Jones Newswires
March 14, 2018 06:39 ET (10:39 GMT)
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