LONDON MARKETS: FTSE 100 Aims To Break Losing Streak As Tesco Bounces, Pound Pulls Back
14 Novembre 2017 - 12:58PM
Dow Jones News
By Carla Mozee, MarketWatch
Vodafone lifts outlook; ITV shares are in the red
U.K. stocks stepped slightly higher Tuesday, eyeing their first
win in four sessions, as corporate cheer and a drop in the pound
following inflation data offset investor concerns about the U.K.'s
political stability and the Brexit process.
Shares of Tesco PLC rose to top the FTSE 100 after a merger deal
cleared a major hurdle.
What markets are doing: The FTSE 100 index rose 0.2% to
7,431.01, with telecoms, tech and consumer-services shares among
advancers. But consumer goods and basic materials shares lost
ground. On Monday, the London benchmark closed down 0.2%
(http://www.marketwatch.com/story/ftse-100-heads-for-a-win-as-political-turmoil-drags-down-the-pound-2017-11-13)
to reach its lowest level since late September.
The pound traded at $1.3087, down from $1.3115 late Monday in
New York. Against the euro, sterling bought EUR1.1170, pulling back
from EUR1.1240 late Monday.
What's moving markets: The pound fell back below $1.3100 and
dropped against other currencies after annualized consumer price
inflation held at a five-year high of 3%, just shy of a FactSet
consensus estimate of 3.1%. The FTSE 100 remained higher as a
softer pound can boost earnings for the index's many multinational
companies and bolster shares in those firms. About 75% of FTSE 100
revenues are generated overseas.
The October inflation report showed growth in the input prices
that factories pay slowed to its lowest level since immediately
after last year's Brexit vote. The inflation report was the first
since the Bank of England raised interest rates for the first time
in a decade
(http://www.marketwatch.com/story/5-key-carney-quotes-after-boe-hikes-rates-for-first-time-in-a-decade-2017-11-02)
earlier this month.
The pound earlier Tuesday traded above the $1.31 handle after
the U.K. government said late Monday that parliament will get a
chance to vote on whether to accept the final Brexit deal. The
currency has been under pressure after a Sunday Times report
(https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0ahUKEwjJwKegh7vXAhVD2KQKHX25AqkQqUMILDAB&url=https%3A%2F%2Fwww.thetimes.co.uk%2Farticle%2Ftory-turmoil-as-40-mps-say-may-must-go-kkg3w6l89&usg=AOvVaw0P3ydYgZ0X_1ThNri40pNZ)
over the weekend said 40 Conservative members of Parliament have
agreed to sign a letter of no confidence in Prime Minister Theresa
May.
On Tuesday, parliamentary lawmakers will discuss a bill to
repeal the law that allowed the U.K. to join the EU.
Check out:Is British leader Theresa May on her way out? Why
that's the fear--and why it matters
(http://www.marketwatch.com/story/is-british-leader-theresa-may-on-her-way-out-why-thats-the-fear-and-why-it-matters-2017-11-09)
What strategists are saying: "The pound dropped as predictions
for an uptick to 3.1% [in the inflation reading] were not realized.
It is likely to feel extra pressure going forward, particularly if
CPI tops out at this level. The Bank of England's interest-rate
hike earlier this month now looks more likely to be a 'one and
done' move, with the next hike not expected until late 2018 at the
earliest," said Jake Trask, FX research director at OFX.
"The feeling is that inflation has now peaked in the U.K.,
easing the spending squeeze on consumers. Attention will now turn
to tomorrow's wage growth data, to see if the spread of CPI over
wages narrows," he added.
Opinion:Brexit hard-liners are selling England by the pound
(http://www.marketwatch.com/story/brexit-hardliners-are-selling-england-by-the-pound-2017-11-09)
Stock movers: Tesco shares (TSCO.LN) popped up 5.6% after the
U.K. Competition and Markets Authority provisionally cleared a
merger between Tesco and wholesaler Booker Group (BOK.LN) . Booker
shares off the FTSE 100 climbed 5.2%.
Meanwhile, J Sainsbury PLC (SBRY.LN) rose 1.6% after Kantar
Worldpanel
(http://www.marketwatch.com/story/aldi-lidl-continue-to-build-uk-market-share-2017-11-14)said
the grocer's sales rose 2.6% in the 12 weeks to Nov. 5, the
stronger performance of the so-called Big Four supermarkets. Shares
of Wm Morrison Supermarkets (MRW.LN) were up 0.4%.
Vodafone (VOD.LN) (VOD.LN) jumped 5.4% after the mobile-services
company raised its outlook for fiscal 2018
(http://www.marketwatch.com/story/vodafone-pretax-profit-up-55-lifts-2018-outlook-2017-11-14),
with pretax profit for the first half rising 55%
year-over-year.
ITV PLC (ITV.LN) shares were chopped down 2.7% after the
broadcaster said its total external revenue dropped 1%
(http://www.marketwatch.com/story/itv-revenue-falls-on-track-to-meet-guidance-2017-11-14)
in the first nine months of this year, but said it remains on track
to meet full-year guidance.
(END) Dow Jones Newswires
November 14, 2017 06:43 ET (11:43 GMT)
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