Michele Maatouk WebFG News | 16 Jun, 2017 12:26 - Updated: 13:26 | | |
Equity markets in London were extending gains by midday on Friday, recovering from the previous session’s losses.
The FTSE 100 was up 0.7% to 7,468.89, while the pound was down 0.2% against the euro at 1.1428 but was adding to the previous days gains against the dollar with a 0.1% rise to 1.2766.
On Thursday, stocks ended in the red as the pound was boosted by a more hawkish stance than expected from the Bank of England. Although the BoE stood pat on interest rates at 0.25%, as forecast, the vote revealed a 5-3 split on the monetary policy committee versus the previous and expected 7-1 split, catching investors off guard.
CMC Markets analyst David Madden said: “Traders have gotten to grips with the surprise that three members of the Bank of England voted to hike interest rates. Bargain hunting is in play today as dealers pick up cheap stocks.
“The political situation in the UK seems to be improving, as the Queen’s speech will take place on Wednesday, even if the Conservatives don’t have a deal in place with the Democratic Unionist Party (DUP) by then. This sign of political stability has added to the boost in investor confidence.”
Investors were also breathing a sigh of relief after eurozone ministers struck a deal to unlock the latest tranche of Greece's bailout cash. The bailout fund will disburse €8.5bn and help to avert a fresh debt crisis in July when the next loan repayment is due.
In UK corporate news, BHP Billiton edged higher after announcing that Ken MacKenzie - a former chief executive of Australian packaging giant Amcor - has been elected to succeed Jac Nasser as chairman with effect from 1 September following Nasser’s retirement.
Travel operator TUI and InterContinental Hotels were higher after encouraging travel and tourism data from the ONS, which showed the sharply weakened pound continues to encourage visits to the UK from abroad and more spend by visitors.
Aerospace and defence group Rolls-Royce ticked up after saying it has started 2017 well, with all businesses performing in line with its expectations. The company’s expectations for first half revenue, profit and free cash flow were left unchanged from that provided at the AGM in May.
Amec Foster Wheeler rallied after being been awarded an engineering procurement and construction contract worth AUD298m in Western Australia.
BTG gained ground as it announced a successful trial of its deep vein thrombosis treatment, while Ascential advanced after it said trading so far this year has been in line with expectations.
On the downside, however, Tesco gave up earlier gains to trade a little lower despite delivering first quarter UK sales ahead of City expectations even in the face of current tough conditions for the wider retail industry.
FTSE 100 - Risers
TUI AG Reg Shs (DI) (TUI) 1,156.00p 2.21%
Rentokil Initial (RTO) 283.10p 2.20%
Mediclinic International (MDC) 796.00p 2.12%
Worldpay Group (WPG) 318.60p 2.12%
Hikma Pharmaceuticals (HIK) 1,673.00p 2.01%
Fresnillo (FRES) 1,589.00p 1.99%
Mondi (MNDI) 2,049.00p 1.94%
InterContinental Hotels Group (IHG) 4,385.00p 1.91%
Rolls-Royce Holdings (RR.) 911.50p 1.84%
Randgold Resources Ltd. (RRS) 7,220.00p 1.69%
FTSE 100 - Fallers
Anglo American (AAL) 975.30p -1.99%
BT Group (BT.A) 289.70p -1.29%
Ashtead Group (AHT) 1,585.00p -0.94%
Tesco (TSCO) 178.70p -0.69%
Sainsbury (J) (SBRY) 261.60p -0.30%
HSBC Holdings (HSBA) 685.50p -0.17%
Bunzl (BNZL) 2,381.00p -0.13%
Old Mutual (OML) 201.00p -0.10%
Barratt Developments (BDEV) 575.00p -0.09%
SSE (SSE) 1,470.00p -0.07%
FTSE 250 - Risers
Acacia Mining (ACA) 299.10p 4.29%
Cobham (COB) 134.20p 3.71%
NMC Health (NMC) 2,328.00p 3.70%
UBM (UBM) 731.50p 3.54%
Ted Baker (TED) 2,417.00p 3.07%
Sanne Group (SNN) 661.00p 3.04%
Halma (HLMA) 1,154.00p 3.04%
Rank Group (RNK) 230.80p 3.04%
Pets at Home Group (PETS) 159.40p 2.91%
Ocado Group (OCDO) 282.20p 2.88%
FTSE 250 - Fallers
CLS Holdings (CLI) 204.00p -2.53%
IP Group (IPO) 136.90p -2.14%
Crest Nicholson Holdings (CRST) 541.50p -1.72%
NewRiver REIT (NRR) 347.00p -1.14%
Riverstone Energy Limited (RSE) 1,264.00p -1.02%
Vedanta Resources (VED) 589.00p -0.93%
Daejan Holdings (DJAN) 6,390.00p -0.85%
Northgate (NTG) 523.50p -0.57%
Bovis Homes Group (BVS) 889.00p -0.56%
Go-Ahead Group (GOG) 1,797.00p -0.55%
Real estate investment trust Tritax Big Box has agreed terms to extend the maturity on its existing loan facility with Landesbank Hessen-Thüringen Girozentrale.
BGEO Group announced on Friday that its utility and energy subsidiary, Georgia Global Utilities, has begun construction of Bodorna hydro power plant near Bodorna reservoir.
Sky and BT have agreed a deal to sell their channels on each other’s platforms.
The US’s top media regulator voted to end rules protecting an open internet on Thursday, a move critics warn will hand control of the future of the web to cable and telecoms companies. At a packed meeting of the Federal Communications Commission (FCC) in Washington, the watchdog’s commissioners voted three to two to dismantle the “net neutrality” rules that prevent internet service providers (ISPs) from charging websites more for delivering certain services or blocking others should they, for example, compete with services the cable company also offers. - Guardian
Funds have flowed out of Standard Life Aberdeen in the group's first update since its merger was finalised, though outflows lessened year on year.
London stocks were set nudge lower at the open on Friday following downbeat sessions in the US and Asia, as investors worry about the passage of the US tax bill.
Wall Street’s main indices gave up earlier gains to close lower on Thursday, as healthcare, materials and telecoms stocks dragged investor sentiment down late in the session.
The conclusion of the EU Council summit will be the main focus for markets on Friday, with no FTSE 350 companies expected to report results.
Walt Disney has announced an agreement to buy the entertainment assets of 21st Century Fox in a deal worth around $52.4bn, including a 39% stake in UK broadcaster Sky.