LONDON MARKETS: FTSE 100 Scores Longest Weekly Win Streak In 12 Years
11 Maggio 2018 - 6:10PM
Dow Jones News
By Carla Mozee and Sara Sjolin, MarketWatch
Zoopla owner in takeover deal for nearly $3 billion
U.K.'s blue-chip stocks rose on Friday, logging a seventh
straight weekly gain, as miners rallied and ITV PLC extending gains
following its well-received earnings report.
Rounding off a busy week of M&As was a takeover deal of ZPG
PLC, the owner of property website Zoopla, for more than GBP2
billion.
How markets are moving
The FTSE 100 index ended 0.3% higher at 7,724.55, logging its
highest close since Jan. 23.
For the week, the London benchmark climbed 2.1%. That means the
index now has risen for seven straight weeks, which marks its
longest weekly winning run since July 2005, when the market rose
for eight straight weeks.
The pound traded at $1.3542, up from $1.3519 late Thursday in
New York. Against the euro, sterling bought EUR1.1346 compared with
EUR1.1345 in the prior session.
What's driving markets
The FTSE 100 has recently been aided by a pullback in the pound,
which was still headed for a 0.1% weekly loss, even with Friday's
slight rebound. A weaker pound tends to bolster the equity
benchmark as its large multinational companies make most of their
revenue and earnings overseas.
Sterling is now down 4.5% over the last month alone, sold off
after a string of disappointing economic data and the Bank of
England's decision to keep rates on
(http://www.marketwatch.com/story/bank-of-england-holds-key-interest-rate-at-05-cuts-inflation-and-gdp-outlooks-2018-05-10)hold
on Thursday.
Just in April, traders were pricing in an almost 90% chance of a
rate rise at the BOE meeting on Thursday, but that probability had
dwindled to around 10% ahead of the decision. As expected, the
central bank made no changes to monetary policy and provided a
somewhat confusing outlook for the future rate path. Some analysts
said an August rate increase could still take place, depending on
U.K. economic data which recently has fallen short of
expectations.
On Friday, the FTSE was lifted by a rally for miners, with
shares of Randgold Resources Ltd. (RRS.LN) (RRS.LN) leading the
charge for the sector with a 3.8% gain.
What are strategists saying?
There are "fairly stretched readings on most technical
indicators" for the FTSE 100, wrote Bill McNamara in his daily The
Technical Trader newsletter. "Although this does not amount to a
sell signal per se it does imply, however, that the scope for
further upside in the near-term has become limited and the chances
of a pull-back of some sort have increased."
Stock movers
ITV PLC (ITV.LN) rose 7.3%, topping the FTSE 100, extending
Thursday's 6.1% jump after the broadcaster posted a 5% increase in
total external revenue
(http://www.marketwatch.com/story/itv-posts-higher-revenue-upbeat-forecast-2018-05-10)
for the first quarter.
Off the main benchmark, ZPG PLC shares (ZPG.LN) rallied 31% to
490 pence after the owner of property-listed websites Zoopla and
PrimeLocation, among other brands, agreed to be purchased by U.S.
private-equity firm Silver Lake for GBP2.2 billion ($2.99 billion).
The offer of 490 pence a share in cash is a 31% premium over ZPG's
closing price Thursday of 375.20 pence.
"Silver Lake is the global leader in technology investing and I
am firmly of the belief that ZPG will benefit from their technology
expertise and global network which will help accelerate our
growth," said ZPG's founder and Chief Executive Alex Chesterman in
a statement.
John Wood Group PLC (WG.LN) bounced up 10% as the
energy-services company posted an upbeat first-quarter trading
statement
(http://www.marketwatch.com/story/wood-group-sees-upbeat-trading-momentum-in-1q-2018-05-11).
(END) Dow Jones Newswires
May 11, 2018 11:55 ET (15:55 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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