LONDON MARKETS: FTSE 100 Ends Higher, Led By EasyJet's Jump
21 Novembre 2017 - 6:34PM
Dow Jones News
By Carla Mozee and Victor Reklaitis, MarketWatch
A higher divorce payment from the U.K. might unclog the Brexit
process
British blue-chip stocks ended higher Tuesday, with EasyJet PLC
helping to lead the way up as investors assessed a round of
corporate financial updates.
The lift came as major U.S. stock gauges rallied
(http://www.marketwatch.com/story/nasdaq-shapes-up-for-another-record-with-retail-earnings-on-deck-2017-11-21),
with a leap in technology shares pushing the Nasdaq Composite Index
to an all-time high.
The pound was little changed, surrendering an earlier gain that
came amid hopes that a higher divorce payment from the U.K. will
unclog the Brexit process.
What markets are doing: The FTSE 100 index rose 0.3% to close at
7,411.34, adding to Monday's rise of 0.1%
(http://www.marketwatch.com/story/ftse-100-slips-to-around-2-week-low-as-pound-rises-2017-11-20)
.
The pound traded at $1.3230, roughly unchanged from $1.3233 late
Monday in New York.
What's moving markets: Sterling initially held to higher ground
after media reports that U.K. Prime Minister Theresa May's cabinet
has agreed to increase the amount the U.K. is willing to pay the EU
(https://www.theguardian.com/politics/2017/nov/20/theresa-mays-cabinet-agrees-to-pay-more-to-break-brexit-deadlock)
on its exit from the bloc. The new "divorce bill" offer could be
GBP40 billion ($53 billion) -- twice as much as previously
suggested, some reports said.
While the higher offer would require more EU concessions in
return, it was being cheered as having the potential to spur the
languishing Brexit talks back to life.
Economic docket: U.K. public sector borrowing rose
(http://www.marketwatch.com/story/uk-public-borrowing-increases-in-october-2017-11-21)
to GBP8.0 billion in October, up GBP0.5 billion from year ago, the
Office for National Statistics said.
Investors will assess that reading as they wait for Chancellor
Philip Hammond to present his budget for the U.K. on Wednesday.
Members of the Bank of England -- Jon Cunliffe, Ian McCafferty,
Michael Saunders and Gertjan Vlieghe -- will appear before the
Treasury Select Committee to discuss the central bank's November
Inflation Report at 10 a.m. London time, or 5 a.m. Eastern
Time.
What strategists are saying: For the FTSE 100, the "near-term
outlook remains somewhat unclear although it seems reasonable to
assert that a close below 7,350 will represent a significant
technical development that would likely be followed by further
weakness," wrote Bill McNamara, who runs The Technical Trader daily
newsletter.
"The U.K. budget is due tomorrow. Chancellor Philip Hammond is
expected to remain cautious on the budget, especially if the U.K.
prepares to loosen its purse string to quit the EU in a friendly
manner," said Ipek Ozkardeskaya, senior market analyst at London
Capital Group.
"Of course, the UK's offer may fall short of the EU's demand.
The downside risks prevail, and [pound] resistance could be found
at 1.3280-1.3300 area," Ozkardeskaya said in a note.
Stock movers: EasyJet (EZJ.LN) shares bounced up 5.1% after the
low-cost airline said passenger traffic rose 10% in fiscal 2017
(http://www.marketwatch.com/story/easyjet-net-profit-down-24-passenger-traffic-up-2017-11-21)
and that forward bookings for the first quarter of 2018 are ahead
of last year. Net profit for the full year fell 24% to GBP325
million ($430 million). The stock was the FTSE 100's biggest
gainer.
Kingfisher PLC (KGF.LN) rose 1.4% even after the DIY retailer
said like-for-like group sales fell 0.5%
(http://www.marketwatch.com/story/kingfisher-sales-fall-but-sticks-with-profit-view-2017-11-21)
in the third quarter, reflecting continued weak sales in France.
HSBC analysts backed their buy rating on the stock after the
results, saying it looks cheap and the downside risk is limited,
according to a Dow Jones Newswires report.
Compass Group PLC (CPG.LN) dropped 3.3%. The move came after the
catering-services provider said pretax full-year profit rose 18%
(http://www.marketwatch.com/story/compass-profit-up-buoyed-by-n-america-business-2017-11-21),
bolstered by its North America business and the pound's slump.
(END) Dow Jones Newswires
November 21, 2017 12:19 ET (17:19 GMT)
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