LONDON MARKETS: FTSE 100 Logs Best Day In More Than A Month, But Still Notches Weekly Loss
August 03 2018 - 12:28PM
Dow Jones News
By Victor Reklaitis, MarketWatch
RBS and Mondi shares are among the blue-chip gauge's big
winners, while British Airways parent IAG falls
The U.K.'s main equity gauge posted a sharp gain Friday as a
rally in the tech-sector cheered investors, and Mondi PLC's and
Royal Bank of Scotland Group PLC's produced upbeat quarterly
results. However, the rally fell short of erasing a weekly loss for
the British benchmark.
How markets are performing
The FTSE 100rose 1.1% to 7,659.10, erasing all of Thursday's 1%
(http://www.marketwatch.com/story/ftse-100-slips-on-worry-us-will-ratchet-up-chinese-tariffs-2018-08-01)
drop and representing its best day since June 27, according to Dow
Jones Market Data.
The British blue-chip gauge registered a weekly loss of
0.6%--its steepest weekly decline since the period ended June
29.
The poundwas buying $1.3023, up slightly from $1.3014 late
Thursday in New York.
What's moving markets
There was pressure on equities around the world in the prior
session, after U.S. President Donald Trump's administration late
Wednesday confirmed that it was considering more than doubling
proposed tariffs on $200 billion in Chinese goods to 25%
(http://www.marketwatch.com/story/trump-seeks-25-tariffs-on-200-billion-of-goods-imported-from-china-2018-08-01).
But the main U.S. stock indexesshook off trade-related fears and
mostly closed higher Thursday
(http://www.marketwatch.com/story/us-stock-benchmarks-poised-to-slump-as-trade-angst-rattles-global-markets-2018-08-02)
on the back of tech titan Apple Inc.'s(AAPL)rally to a market cap
above $1 trillion
(http://www.marketwatch.com/story/apple-crosses-threshold-needed-for-1-trillion-market-cap-2018-08-02),
and other major stock markets appeared to be following suit
Friday.
On the Brexit front, Bank of England Gov. Mark Carney warned
Friday that there is an "uncomfortably high
(http://www.marketwatch.com/story/boes-carney-warns-chance-of-no-deal-brexit-is-uncomfortably-high-2018-08-03)"
chance of the U.K. crashing out of the European Union without a
transition agreement, which could rattle the economy.
Traders may react to U.K. Prime Minister Theresa May's planned
meeting with French President Emmanuel Macron in France on Friday.
French officials reportedly have said
(https://news.sky.com/story/theresa-may-and-emmanuel-macron-meet-on-the-french-riviera-with-brexit-compromise-hopes-11459012)
the rendezvous isn't a negotiation, and it doesn't take the place
of Brexit talks led by the European Union's chief negotiator,
Michel Barnier.
A disappointing July figure for U.K. services also was getting
some attention Friday. Markit's services purchasing-manager index
came in at 53.5, below expectations for a reading of 54.7,
according to FactSet data.
In addition, investors are bracing for a U.S. monthly jobs
report
(http://www.marketwatch.com/story/us-jobs-report-for-july-likely-to-be-another-good-one-but-the-real-story-is-rising-wages-2018-08-02),
came in weaker than expected, showing that 157,000 jobs were
created in July, compared with economists polled by MarketWatch for
gains of 195,000 jobs in July. Still, the reading, with
unemployment slipping to 3.9% from 4% in the prior month and upward
revisions to earlier months, didn't nothing to suggest that the
world's largest economy wasn't healthy.
What are strategists saying?
-- "A rising Apple share price helped lift all boats," said
Michael Hewson, chief market analyst at CMC Markets UK, in a note
Friday, referring to the U.S. stock market's rebound.
Stocks in focus
Shares in Mondi(MND.JO)soared 7.9% for the FTSE 100's biggest
gain after the packaging and paper company reported a higher
first-half pretax profit and raised its dividend
(http://www.marketwatch.com/story/mondi-pretax-profit-rises-6-on-higher-prices-2018-08-03).
Shares in RBS(RBS.LN)tacked on 3.1% as the lender said it would
pay its first dividend
(http://www.marketwatch.com/story/rbs-to-pay-first-dividend-in-10-years-2018-08-03)
in 10 years while posting its results.
International Consolidated Airlines Group SA's stock(IAG.LN)fell
by 2.2% after the British Airways parent said second-quarter profit
rose, but passenger unit revenue for the quarter declined
(http://www.marketwatch.com/story/british-airways-parent-iag-profit-rises-2018-08-03).
IAG CEO Willie Walsh also said the company would sell its small
stake in Norwegian Air Shuttle ASA(NAS.OS)if its efforts to acquire
the budget carrier fail. Norwegian Air shares gained 1.2%.
(END) Dow Jones Newswires
August 03, 2018 13:13 ET (17:13 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Apr 2024 to May 2024
FTSE 100
Index Chart
From May 2023 to May 2024