FTSE close: Serco rise; WPP, TUI down

 

17.10 (close)

People walk past London's Stock Exchange

The London market fell into the red today as violence in Libya showed no signs of stopping and pushed oil prices to new highs.

The FTSE 100 Index lost hold of earlier gains and closed 14 points lower at 5990.39, as oil prices started to rise again after a brief respite yesterday.

Crude oil surged to its highest level in two and a half years as fighting continued in Libya, hitting 103.65 US dollars a barrel on the New York Mercantile Exchange while Brent crude in London was up at 115 US dollars.

Reports that a truce could be brokered by Venezuelan President Hugo Chavez caused oil prices to ease yesterday, but the prospect for such a truce appeared increasingly remote after Libyan rebels flatly rejected mediation.

In American, Wall Street's Dow Jones Industrial Average was down 0.4% despite the Labor Department saying the US economy generated 192,000 jobs in February, up from January's 63,000.

The new figures topped a week of forecast-beating jobs data, including a weekly drop in unemployment claims and a positive report on private sector jobs. But the latest stats were in line with expectations, meaning a muted reaction from investors.

Hints from the European Central Bank yesterday that a rise in interest rates could be on the cards at its next meeting also failed to derail markets.

The pound was down against the euro at 1.16 as the single currency continued to surge on hopes of higher rates. Sterling was also down against the dollar at 1.62.

The impact of surging oil prices was evident on the fallers' board, as British Airways parent International Consolidated Airlines plunged nearly 3% or 6.8p at 226.8p and Thomson Holidays owner TUI Travel dropped 2.4p at 239.4p.

Advertising agency WPP provided the focus for corporate results after the blue-chip company reported a strong end to 2010 and a 27% rise in full-year profits.

It forecast like-for-like revenues growth of 5% this year, but shares slipped 3%, or 22p to 814.5p, following a recent strong run.

Outsourcing firm Serco was the biggest riser - up 27p to 618.5p - after Espirito Santo Investment Bank predicted earlier this week that it will continue to generate attractive earnings growth.

Engineering firm IMI was also on the risers board - up 14p to 957p - after several brokers raised their ratings, backing the company's three year growth strategy that will see it increase its presence in emerging markets.

Outside the top flight, shares in online grocer Ocado continued their recent improvement after the recently-listed company said it remained profitable in the first quarter of its financial year.

It added that sales increased by 24.7% to £146.2m in the 12 weeks to February 20. Shares rose 2p to 212.5p, or 1%, having been as low as 121p in October.

The biggest Footsie risers were Serco up 27p at 618.5p, Pearson ahead 37p at 1091p, Petrofac up 46p at 1466p and Resolution ahead 8.9p at 290.2p.

The biggest Footsie fallers were GKN down 6.3p at 204.8p, International Consolidated Airlines off 6.8p at 226.8p, Carnival down 73p at 2590p and WPP off 22p at 814.5p.

15.10: With the end in sight, the FTSE 100 is 19.41 points higher at 6024.50.

Despite better news on US jobs, the Dow Jones has oopened lower and is 43.52 poiints lower after half an hours trading on Wall Street.

13.45:

At lunchtime, the FTSE 100 is 29.27 points higher at 6034.36.

Outsourcing firm Serco is the biggest riser - up 27.8p to 619.3p - after Espirito Santo Investment Bank predicted earlier this week that it will continue to generate attractive earnings growth.

Engineering firm IMI is also on the risers board - up 16p to 959p - after several brokers raised their ratings, backing the company's three year growth strategy that will see it increase its presence in emerging markets.

Oil prices have risen through the morning, fuelled by the ongoing crisis in Libya. Brent crude rose by more than 0.5% to $115.3.

In the US, the non-farm payroll data showed unemployment falling in the world's larget economy. That will help secure a higher opening for the Dow Jones later.

11.35:

The Footsie has given back some of the gains from early this morning but is still 33.5 points better off at 6038.59.

From the corporate diary today, advertising giant WPP reported that a stronger-than-expected recovery in the US and Germany, and in traditional media including free-to-air television helped like-for-like revenues rise 5.3%.

Despite that, WPP shares are 23p - 2.75% - lower at 813.5p. Here's the full story.

In commodities, gold has fallen back from a record high of $1,440 an ounce, hit yesterday. Unrest in the Middle East pushed prices higher as investors sought a safe haven from the uncertainty.

But better jobs news in the US (taken as a sign that demand for equities will increase) and a sell-off of commoditites on the back of oil price falls, pushed gold lower.

This morning gold was at $1,416.30 an ounce.

Oil fell back after anxiety over Middle Eastern supplies eased. A Venezuela-led peace plan is being considered by leader at the The Arab League, and was taken as a bearish sign for oil prices.

Brent crude fell yesterday, closing 1.6% lower at $114.94 a barrel.

09.55:

The FTSE 100 is on the rise again today after better US jobs news help markets across the world, while ad giant WPP posted a big rise in profits and house prices fell.

A strong session for Asian markets helped London's FTSE 100 shrug off sky-high oil prices and consolidate its recent gains in early trading today.

The top flight index stood 42.8 points higher at 6047.9 after jumping more than 90 points last night on positive data from the United States showing that American firms are hiring more workers.

Tokyo's Nikkei 225 was up 1% as Asian markets seized on the encouraging signals from the world's biggest economy, despite Brent crude remaining in the region of $116 dollars a barrel.

Hints from the European Central Bank that a rise in interest rates could be on the cards at its next meeting also failed to derail markets.

Advertising giant WPP provided the focus for corporate results after the blue-chip company reported a strong end to 2010 and a 27% rise in full-year profits.

It forecast like-for-like revenues growth of 5% this year but shares slipped 2%, or 18.5p to 818p, following a recent strong run.

Outside the top flight, shares in online grocer Ocado continued their recent improvement after the recently-listed company said it remained profitable in the first quarter of its financial year. It added that sales increased by 24.7% to £146.2m in the 12 weeks to February 20.

In economy news, Halifax has reported a 0.9% fall in house prices during February.

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