LONDON MARKETS: FTSE 100 Scrabbles To Hold Onto Record, As BP Falls
16 Gennaio 2018 - 11:11AM
Dow Jones News
By Carla Mozee, MarketWatch
Inflation comes in at 3% as expected
Blue-chip stocks edged lower Tuesday, pulled lower by a fall in
shares of BP PLC after the energy heavyweight said it will take a
$1.7 billion charge related to the Deepwater Horizon disaster.
Traders were focused an update on U.K. inflation, expected to
show a slight slowdown.
How markets are moving: The FTSE 100 index slipped 2 points to
7,767.55, with the oil and gas, and basic materials sectors in the
red. But the consumer goods group led the sector advancers.
The London benchmark was still near the all-time closing high of
7,778.64, hit last week. On Monday, the index fell 0.1%
(http://www.marketwatch.com/story/ftse-100-steps-back-from-record-with-carillion-collapse-in-focus-2018-01-15).
The pound traded at $1.3767, slipping from $1.3782 ahead of the
release of inflation data. Sterling was at $1.3794 late Monday in
New York, after breaking above $1.38 earlier in that session.
What's driving markets: The London benchmark wobbled in early
trading, with the decline for BP shares and the drop in pound
pulling in different directions.
A fall for BP shares was keeping the index in check after the
energy giant said it expects to book a $1.7 billion charge
(http://www.marketwatch.com/story/bp-to-book-17-billion-deepwater-horizon-charge-2018-01-16-34853027)
in its 2017 fourth-quarter results for claims related to the 2010
Deepwater Horizon oil spill. The company has already said it is
likely to take a $1.5 billion accounting charge related to U.S. tax
reform. BP shares have a weighting of 5.1% on the FTSE 100, the
fourth-highest of any individual company, according to FactSet
data.
Economic data: U.K. inflation came in at 3% in December, the
Office for National Statistics reported, meeting a consensus
estimate from FactSet. The rate compares with a reading of 3.1% in
November.
Average house prices in the U.K. rose 5.1% in November, the ONS
said.
What strategists are saying: "The [inflation] data is unlikely
to greatly sway the Bank of England MPC's current views, although
it is sure to be monitoring the current [pound] rally, continuing
to erode the Brexit inflation of the last 18 months" said Mike van
Dulken and Henry Croft at Accendo Markets.
"More of this could see the U.K. central bank in a position to
hike interest rates sooner than markets are perhaps pricing in,"
the analysts said in a note.
Stock movers: BP PLC (BP.LN) (BP.LN) lost 1.3% after the
announcement of the Deepwater Horizon charge.
Rio Tinto PLC (RIO) (RIO) (RIO) said it continues to expect
shipments of iron ore from its Western Australia mines
(http://www.marketwatch.com/story/rio-tinto-sees-record-quarterly-iron-ore-shipments-2018-01-16)
will likely rise this year, after record exports in the last
quarter allowed it to hit a target for 2017. But the miner's shares
traded down by 0.6%.
Other mining shares were lower. Antofagasta PLC (ANTO.LN) fell
1.6%, and Anglo American PLC (AAL.LN) lost 1.2%.
Shares in Associated British Foods (ABF.LN) added 1.4% following
ratings upgrade to overweight from equal weight at Barclays.
Advancers included supermarket chain Tesco PLC (TSCO.LN) ,
higher by 0.8%, respectively.
(END) Dow Jones Newswires
January 16, 2018 04:56 ET (09:56 GMT)
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