LONDON MARKETS: FTSE 100 Ends Slightly Lower As British Pound Recovers
November 17 2017 - 11:48AM
Dow Jones News
By Sara Sjolin, MarketWatch
Carillion tanks more than 40% after profit warning
U.K. stocks slipped and logged a second straight weekly loss on
Friday, pushed lower by a stronger pound.
What are markets doing: The FTSE 100 index dropped 0.1% to close
at 7,380.68, falling for a sixth session out of the last seven. The
benchmark managed to break a five-day losing run on Thursday to
close 0.2% higher
(http://www.marketwatch.com/story/ftse-100-set-to-break-5-day-losing-run-as-oil-stages-slight-rebound-2017-11-16)
after a round of well-received corporate updates.
For the week, the FTSE 100 posted 0.7% loss, adding to a 1.7%
decline from last week.
"The fact that yesterday's bullish sentiment wasn't replicated
today could be a sign that markets may turn over next week," said
David Madden, market analyst at CMC Markets UK, in a note.
"Buying the dip has been a popular strategy in recent months,
but on this occasion there isn't the same optimism. Traders have
been talking about a market top for a long time, and in light of
the recent declines we may have seen the highs of the year," he
added.
What's driving the markets: Analysts cited the stronger pound as
the culprit behind Friday's weakness for stocks. As 75% of FTSE 100
companies' revenues are generated overseas, a strong pound hurts
earnings when they are converted back into sterling.
The pound bought $1.3220, up from $1.3196 late Thursday in New
York.
"The [dollar] dropped overnight on news that Trump's campaign
was subpoenaed for documents regarding Russia," said analysts at
Accendo Markets in a note.
Special counsel Robert Mueller's team in mid-October issued a
subpoena to more than a dozen officials
(https://www.wsj.com/articles/special-counsel-mueller-issued-subpoena-for-russia-related-documents-from-trump-campaign-officials-1510875492?mod=mktw)
from Donald Trump's campaign, asking them to hand over
Russia-related documents, according to a report in The Wall Street
Journal. Mueller is overseeing an investigation into whether Trump
associates colluded with Russia to meddle in the 2016 presidential
election. Both Moscow and Trump have denied any interference.
Meanwhile, investors continue to track the progress Republican
tax-cut efforts in Washington. The focus is now on the Senate after
the House of Representatives passed a sweeping bill to overhaul the
tax code
(http://www.marketwatch.com/story/house-passes-tax-overhaul-as-spotlight-turns-to-senate-2017-11-16)
on Thursday.
Stock movers: Outside the FTSE 100, shares of Carillion PLC
(CLLN.LN) tanked 48% after the embattled construction company
warned that full-year profits will be "materially lower than
current market expectations."
United Utilities Group PLC (UU.LN) gave up 4.4% after HSBC cut
the stock to hold from buy, according to Dow Jones Newswires.
Shares of Sky PLC (SKY.LN) rose 4.1% after reports Comcast Corp.
(CMCSA) and Verizon Communications Inc. (VZ) are exploring bids to
buy
(http://www.marketwatch.com/story/comcast-seeks-to-buy-significant-part-of-fox-verizon-interested-too-2017-11-16)
21st Century Fox Inc.'s (FOX) stake in Sky, among other assets.
(END) Dow Jones Newswires
November 17, 2017 12:33 ET (17:33 GMT)
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