LONDON MARKETS: FTSE 100 Inches Up After China Data; May To Outline Latest Brexit Proposal
January 21 2019 - 9:13AM
Dow Jones News
By Emily Horton
London markets inched up Monday, as investors weighed up the
latest China growth data and waited for Prime Minister Theresa May
to outline her latest Brexit proposal to parliament.
Bookmaker William Hill PLC (WMH.LN) and home improvement
retailer Kingfisher PLC (KGF.LN) struggled on Monday.
How are the markets trading?
The FTSE 100 Index were flat at 6,967.40, after finishing up
0.7% for the week on Friday.
The British pound was mostly flat at $1.2873 from $1.2986 late
in New York on Friday.
What's driving the markets?
(http://www.marketwatch.com/story/us-mulls-easing-tariffs-against-china-in-order-to-calm-markets-pave-way-for-deal-2019-01-17)In
the U.K., Prime Minister Theresa May is expected to try and crack
(http://www.marketwatch.com/story/brexit-brief-will-parliament-take-back-control-2019-01-21)the
political stalemate over the Brexit by outlining proposals in
parliament on Monday that are expected to focus on winning more
concessions from the European Union. However, given the rejection
of May's deal and the lack of clarity over the options available to
the U.K. government, it seems more likely that Britain's exit from
the European Union will be delayed beyond March 29.
According to people familiar with the matter, May's loss last
week has stirred up tensions among London's biggest financial
institutions
(https://www.fnlondon.com/articles/battle-lines-drawn-in-the-city-over-norway-model-20190120).
Chinese government officials on Monday announced its economy
expanded by 6.6% over 2018, down from 2017's 6.9%, the slowest
annual pace China has recorded since 1990
(http://www.marketwatch.com/story/china-posts-slowest-economic-growth-since-1990-2019-01-20).
The trade conflict with Washington has adding to this gloom, with
the uncertainty over a trade truce stunting investment in Chinese
exporters.
In Switzerland, the World Economic Forum kicked off, with its
founder, Klaus Schwab, saying that President Donald Trump would
have been an "interesting discussion partner"
(http://www.marketwatch.com/story/davos-chief-says-global-economic-growth-must-be-more-inclusive-2019-01-20)
at its annual Davos event, but acknowledged that the partial U.S.
government shutdown scuttled those plans. The International
Monetary Fund has cut its forecast for world economic growth this
year
(http://www.marketwatch.com/story/imf-cuts-world-economic-forecast-for-2019-citing-trade-tensions-2019-01-21),
citing heightened trade tensions and rising U.S. interest
rates.
What stocks are active?
Home improvement retailer Kingfisher PLC (KGF.LN) led the FTSE
100 losers, falling by 4%.
Away from the main index, William Hill PLC (WMH.LN) dropped
3.3%, after it warned over operating profit for 2018
(http://www.marketwatch.com/story/william-hill-warns-2018-earnings-will-fall-2019-01-21),
although this projection is in line with previous guidance.
Just Eat PLC (JE.LN) gained 1%, on the news that its chief
executive Peter Plumb has stepped down with immediate effect
(http://www.marketwatch.com/story/just-eat-narrows-earnings-guidance-ceo-to-leave-2019-01-21)and
the group narrowed its earnings guidance for 2018.
Meanwhile, heavyweight miner Antofagasta (ANTO.LN) lost almost
3%, in a sector that provided the biggest downward pressure as
miners are sensitive to news out of China, a big buyer of natural
resources. BHP Group PLC (BHP.AU) (BHP.LN) slipped 1%.
Healthcare chain NMC Health (NMC.LN) gained just under 2% on
Monday, while Costa coffee and Premier Inn owner, Whitbread PLC
(WTB.LN), gained 0.8%.
(END) Dow Jones Newswires
January 21, 2019 09:58 ET (14:58 GMT)
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