LONDON MARKETS: U.K. Stocks Pull Back After Longest Weekly Win Streak In 12 Years
14 Maggio 2018 - 10:55AM
Dow Jones News
By Sara Sjolin, MarketWatch
IWG soars on takeover talks
U.K. stocks moved slightly lower on Monday, falling from a 3 1/2
month high as investors absorbed the latest developments in the
U.S.-China trade talks and movements in the oil price.
Shares of IWG PLC soared after the after the serviced-office
company said it's in talks with three rival private-equity firms
about a potential take over.
What are markets doing?
The FTSE 100 index slipped 0.1% to 7,718.5, pulling back from
its highest close sine Jan. 23 scored on Friday. Last week, the
London benchmark also logged its longest weekly winning run since
July 2005
(http://www.marketwatch.com/story/ftse-100-seeks-firm-direction-but-on-course-for-7th-weekly-advance-2018-05-11),
having advanced for seven straight weeks in a row.
The pound rose to $1.3582, compared with $1.3542 late Friday in
New York.
What is driving the market?
Investors in London took a breather on Monday after the recent
winning run that was boosted by a rally in oil companies and a drop
in the pound.
On Monday, oil prices declined as a member of the Organization
of the Petroleum Exporting Countries said the cartel has enough
spare capacity to offset any shortage that might come when the U.S.
reimposes sanctions on Iran.
Both West Texas Intermediate crude and Brent jumped to their
highest levels since November 2014 last week after President Donald
Trump said he'd pull the U.S. out of the Iran nuclear deal and
reintroduce sanctions that could include the country's oil
exports.
Traders were Monday also watching the latest developments in
trade talks between the U.S. and China. Trump was seen as paving
the way for constructive discussions with Beijing this week after
he over the weekend threw a lifeline to struggling Chinese telecom
giant ZTE
(http://www.marketwatch.com/story/trump-extends-lifeline-to-sanctioned-chinese-tech-company-zte-2018-05-13)(000063.SZ).
There we no major economic data on tap in the U.K. on Monday,
but unemployment data are due on Tuesday.
What are strategists saying?
"It's looking like one of those meaningless Mondays -- well, in
Europe at least -- with an empty economic calendar and the barest
pretence of movement from the markets," said Connor Campbell,
financial analyst at Spreadex, in a note.
"Granted, holding at a near 16 week, 7,720-crossing peak, the
FTSE can feel pretty pleased with itself, despite not actually
budging after the bell. If its recovery keeps going -- something
that might be dependent on how sterling reacts to Tuesday's U.K.
jobs report -- then a new all-time high might be on the cards, with
the index one final sprint away from the 7,800-teasing record set
back in the middle of January," he added.
Stock movers
Among oil companies, shares of Royal Dutch Shell PLC (RDSA.LN)
(RDSA.LN) fell 0.4% and BP PLC (BP.LN) (BP.LN) dropped 0.2%.
Centrica PLC (CNA.LN) climbed 0.9% after the utility company
said it is on track to hit its targets for 2018
(http://www.marketwatch.com/story/centrica-on-track-to-hit-full-year-targets-2018-05-14).
Outside the FTSE 100, IWG PLC (IWG.LN) surged 21% after the
serviced-office company late Friday said it has received an
approach from Lone Star and two separate indicative proposals from
Starwood Capital and TDR Capital about a potential takeover
(http://www.marketwatch.com/story/iwg-soars-after-confirming-takeover-talks-with-3-rival-bidders-2018-05-14).
(END) Dow Jones Newswires
May 14, 2018 04:40 ET (08:40 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Grafico Indice FTSE 100
Da Mar 2024 a Apr 2024
Grafico Indice FTSE 100
Da Apr 2023 a Apr 2024