LONDON MARKETS: FTSE 100 Ends Lower, But Retains Grip On Weekly Gain
21 Luglio 2017 - 07:25PM
Dow Jones News
By Carla Mozee, MarketWatch
Major oil companies lose ground; U.K. government borrowing
increases
U.K. stocks finished in the red on Friday, falling along with a
selloff in European stocks as investors braced for the possibility
the European Central Bank will soon say commit to winding down
stimulus measures for the eurozone economy.
Vodafone PLC was a standout as shares of the mobile telecom
company climbed, but major oil companies lost ground ahead of a
meeting of the Organization of the Petroleum Exporting
Countries.
The FTSE 100 index fell 0.5% to 7,452.91. But the benchmark
notched a weekly advance of 1%, the best week performance since the
week ended May 26, FactSet data showed.
But U.K. blue chips fell to intraday lows Friday as a selloff in
European stocks accelerated. That was prompted by extended gains in
the euro, which traded at a more than two-year high against the
dollar. The euro began to rally on Thursday as European Central
Bank President Mario Draghi spoke about monetary policy.
"The ECB retained the warning that it could boost its asset
purchases if necessary, but no one really believes it will," said
Brown Brothers Harriman currency strategists in a note.
Investors have used proceeds from sales of bonds to the ECB to
purchase other assets, including U.K. equities.
"There was nothing in Draghi's comments that undermine our
expectation that at the September meeting, the ECB will announce
that it will reduce the assets it buys but extend the purchases
through the first part of next year. The first robust expansion in
a decade still needs to be nursed to ensure that it absorbs the
spare capacity and boost wages and prices," BBH said.
The pound fetched EUR1.1173 on Friday, higher than EUR1.1153
late Thursday in New York. Against the dollar, sterling changed
hands at $1.3009, up from $1.2973.
Read:Nobody told the euro that Mario Draghi was dovish
(http://www.marketwatch.com/story/nobody-told-the-euro-that-mario-draghi-was-dovish-2017-07-20)
U.K. stocks on Thursday marked their highest close since
mid-June
(http://www.marketwatch.com/story/ftse-100-lifted-as-unilever-advances-with-ecb-meeting-in-focus-2017-07-20),
in part as the pound fell against the dollar. U.K. officials
wrapped up round two of Brexit talks on Thursday, with British and
EU officials clashing over the U.K.'s bill for exiting
(http://www.marketwatch.com/story/uk-eu-clash-over-divorce-bill-as-round-2-of-brexit-talks-wrap-up-2017-07-20)
from the bloc.
Stock movers: Vodafone (VOD.LN) picked up 0.5% after the
mobile-phone services provider reiterated its earnings outlook for
the full year
(http://www.marketwatch.com/story/vodafone-revenue-drops-on-forex-effects-2017-07-21).
Among other top advancers in London trade were British American
Tobacco PLC (BATS.LN) and apparel and home furnishings seller Next
PLC (NXT.LN), with each rising 1.2%.
On the downside, Paddy Power Betfair PLC fell 2.1% and easyJet
PLC (EZJ.LN) dropped 1.7%, extending losses logged Thursday after
the budget airline's third-quarter update.
(http://www.marketwatch.com/story/easyjet-quarterly-unit-revenue-turns-positive-2017-07-20)
Off the benchmark, Paysafe Group PLC (PAYS.LN) leapt 6.8% after
the British electronic payments company said Friday it received a
possible all-cash buyout offer
(http://www.marketwatch.com/story/paysafe-shares-jump-on-38-billion-bid-2017-07-21)
from funds managed by Blackstone and CVC Capital Partners. The bid
represented an 8.9% premium to Thursday's closing price of GBP5.42
a share.
OPEC ahead: Royal Dutch Shell PLC (RDSB.LN) and BP PLC (BP.LN)
were off 1.2% and 0.9%, respectively, as oil prices swung
lower.
The oil market will be in focus as OPEC oil ministers are set to
gather Monday for a monthly meeting to monitor producer compliance
with output quotas. Also Friday, weekly rig-count figures from the
U.S. showed a slide by 1 of rigs drilling for crude to a total
count of 764 rigs, according to a Baker Hughes report.
Read:How OPEC committee's coming meeting could make or break oil
prices
(http://www.marketwatch.com/story/how-opec-committees-coming-meeting-could-make-or-break-oil-prices-2017-07-20)
Data:U.K. government borrowing
(Public-sector%20borrowing%20to%20cover%20the%20shortfall%20between%20taxes%20and%20spending%20was%20GBP22.8%20billion%20($29.59%20billion))
to cover the shortfall between taxes and spending increased to
GBP22.8 billion ($29.59 billion) on the year in the three months
through June, as quickening inflation pushed up the cost of
servicing the country's debt.
(END) Dow Jones Newswires
July 21, 2017 13:10 ET (17:10 GMT)
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