LONDON MARKETS: FTSE 100 Rises Off 15-month Low Ahead Of Inflation Data
20 Marzo 2018 - 10:39AM
Dow Jones News
By Carla Mozee, MarketWatch
Fenner jumps on Michelin buyout; home builders gain ground after
Bellway's update
U.K. blue-chip stocks rose Tuesday, slightly recovering from
lows not seen in more than a year, as traders stepped back into the
market.
The next driver for stocks in London may come from British
inflation figures due later Tuesday, before the Bank of England
makes its next monetary policy decision on Thursday. Focus is also
on the U.S. Federal Reserve, whose policy makers begin a meeting
today.
How markets are moving
The FTSE 100 index picked up 0.4% to 7,068.13. Tech and
financial shares were among the sectors moving higher, but the
utilities group is losing the most. On Monday, the index slid 1.7%
(http://www.marketwatch.com/story/ftse-100-adds-to-recent-retreat-as-central-banks-look-set-to-tighten-2018-03-19)
and marked its lowest close since Dec. 21, 2016, according to
FactSet data.
The pound traded at $1.4050, up from $1.4025 late Monday in New
York.
What's driving markets
The FTSE 100 had popped up by as much as 0.4%, with investors
snapping up shares after the market suffered its sharpest loss
since early February. Stocks were rattled after the pound rallied
on news the EU and U.K. have agreed on the broad terms of a Brexit
transition deal.
A stronger pound can weigh on the FTSE 100, as about 75% of the
benchmark's revenue is made overseas, and that revenue therefore
shrinks when translated back into sterling.
In addition, global stock markets on Monday suffered as U.S.
equities slid, dragged down by tech-sector losses led by Facebook
Inc. (FB) , which is coming under official scrutiny over its use of
member data.
Stocks and sterling may be on the move after the Office for
National Statistics releases consumer price inflation data for
February. Analysts polled by FactSet are looking for a
month-over-month rise of 0.5% and the inflation rate to come in at
2.8%. That would be a decrease from the current rate of 3%, which
is well above the Bank of England's target of 2%.
Analysts say the BOE could hint at an interest rate rise in May
when policy makers release their statement on Thursday.
Later Tuesday, the U.S. Federal Reserve will begin its two-day
meeting, and the Fed is expected to raise its benchmark interest
rates when its policy decision is released Wednesday.
Read:The pound's post-transition deal bounce might not be here
to stay
(http://www.marketwatch.com/story/the-pounds-post-transition-deal-bounce-might-not-be-here-to-stay-2018-03-19)
Don't miss: What to expect from the new Fed dot plot on interest
rates
(http://www.marketwatch.com/story/what-to-expect-from-the-new-fed-dot-plot-on-interest-rates-2018-03-16)
What strategists are saying
"After yesterday's rate hike-fearing, tech stock-bleeding
market-wide declines, the European indices woke up in rebound mode
this Tuesday. The FTSE quickly rose ... a move that lifted the
index back towards 7,070," said Connor Campbell, financial analyst
at Spreadex, in a note.
"As for the pound, the currency continued to ride the swell of
positive sentiment that arose following yesterday's Brexit
transition deal announcement," he said.
"All this, however, may be temporary. That's because the U.K.
still has February's inflation reading to process," he added. "And
while 2.8% is undoubtedly still high, the big question is over how
much hawkish clout such a figure would have, especially with a Bank
of England meeting on Thursday."
Stock movers
Micro Focus shares (MCRO.LN) rose 5.5%, topping the FTSE 100.
Shares on Monday plunged 46% for the software maker said CEO Chris
Hsu has resigned
(http://www.marketwatch.com/story/micro-focus-shares-slump-on-ceo-exit-revenue-warning-2018-03-19)
and warned that revenue for fiscal 2018 will fall more than
previously anticipated.
Home builders were higher after Bellway PLC said it's on track
to deliver record sales
(http://www.marketwatch.com/story/bellway-profit-rises-on-track-for-record-sales-2018-03-20)
for the full year and that pretax profit rose 17% for the first
half of fiscal 2018. Bellway PLC shares (BWY.LN) rose 2.8% on the
mid-cap FTSE 250 index
On the FTSE 100, Barratt Developments PLC (BDEV.LN) shares were
up 1.1%, Taylor Wimpey PLC (TW.LN) picked up 0.7%, and Persimmon
PLC (PSN.LN) rose 0.6%.
Off the FTSE 100, Fenner PLC (FENR.LN) surged 25% as the
polymer-based products manufacturer reached a deal, announced late
Monday, to be purchased by Compagnie Generale des Etablissements
Michelin (ML.FR) in a deal valuing Fenner at GBP1.2 billion pounds
($1.67 billion)
(http://www.marketwatch.com/story/michelin-buys-uks-fenner-for-about-12-billion-2018-03-20).
(END) Dow Jones Newswires
March 20, 2018 05:24 ET (09:24 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Grafico Indice FTSE 100
Da Feb 2024 a Mar 2024
Grafico Indice FTSE 100
Da Mar 2023 a Mar 2024