LONDON MARKETS: FTSE 100 Ekes Out A Slight Gain Ahead Of Key Brexit Vote
February 08 2017 - 12:37PM
Dow Jones News
By Victor Reklaitis and Sara Sjolin, MarketWatch
Brexit vote slated for 8 p.m. London time
U.K. stocks ended little-changed on Wednesday, with traders
appearing to be avoiding big bets as they watched for a final vote
in parliament on a key Brexit bill.
The FTSE 100 closed out 0.04% higher at 7,188.82, after a
session that lacked momentum.
The muted action came ahead of a key vote on a Brexit bill in
the House of Commons slated to come at 8 p.m. London time, or 3
p.m. Eastern Time, the BBC reported
(http://www.bbc.co.uk/news/uk-politics-38902484). Lawmakers are
expected to give a green light to amendments to legislation
allowing the government to start the process of leaving the
European Union.
"It has become quite clear that sterling remains dictated by the
Brexit developments with price sensitivity set to heighten in the
coming weeks," said Lukman Otunuga, an analyst at FXTM, in a note.
"The overall sentiment towards the pound remains heavily bearish,
and uncertainty should provide a solid foundation for sellers to
drag the sterling/dollar back towards $1.2350."
Read:Brexit bill clears key hurdle in parliament--what happens
next?
(http://www.marketwatch.com/story/brexit-bill-works-its-way-through-parliament-what-to-watch-2017-02-01)
The pound was buying $1.2542, down up from $1.2513 late Tuesday
in New York, drawing support from Bank of England policy maker
Kristin Forbes saying U.K. interest rates may need to rise soon
(http://www.telegraph.co.uk/business/2017/02/07/bank-england-policymaker-hints-higher-interest-rates-may-needed/)
to keep inflation in check.
Mining moves: After opening in positive territory, gains for the
U.K.'s miners fizzled through the day to end at the bottom of the
FTSE.
Rio Tinto (RIO) (RIO) (BHP.AU) ended down 1.7%, even after the
Anglo-Australian miner said it swung to a profit in 2016 and
announced a full-year dividend
(http://www.marketwatch.com/story/rio-tinto-swings-to-profit-plans-share-buyback-2017-02-08)
of $1.70 a share. The dividend was down from a year ago, but higher
than expectations.
BHP Billiton PLC (BLT.LN) (BHP.AU) (BHP.AU) lost 3.4% as workers
at the company's majority-owned Minera Escondida in Chile were
expected to strike Thursday
(http://www.marketwatch.com/story/workers-at-huge-chile-copper-mine-ready-to-strike-2017-02-07).
Glencore PLC (GLEN.LN) lost 1.8% and Anglo American PLC (AAL.LN)
fell 0.3%.
Metals prices were higher across the board at the close of the
European session, after struggling for direction earlier in the
day.
Other movers: Also on the downside, Hargreaves Lansdown PLC
(HL.LN) fell 1.6%. The provider of investment products posted a 21%
rise in first-half pretax profit
(http://www.marketwatch.com/story/hargreaves-lansdown-profit-rises-on-higher-volumes-2017-02-08),
but said the second half of the year will be impacted by the
financial services compensation scheme levy, Dow Jones Newswires
reported.
Oil giants Royal Dutch Shell PLC (RDSB.LN) (RDSB.LN) dropped
1.8% and BP (BP.LN) (BP.LN) fell 0.3%. The losses came even as oil
prices erased earlier sharp losses
(http://www.marketwatch.com/story/oil-prices-tumble-as-investors-brace-for-possible-spike-in-us-supply-2017-02-08)and
traded firmly higher after inventory data showed the second-largest
weekly climb on record for U.S. crude supplies.
Some analysts and traders attributed the turn higher in oil
futures to gains in gasoline futures, which rallied on the back of
an unexpected weekly decline in gasoline supplies.
GlaxoSmithKline PLC (GSK.LN) (GSK.LN) ended flat after reporting
a drop in net earnings due
(http://www.marketwatch.com/story/glaxosmithkline-swings-to-profit-on-weak-pound-2017-02-08-9485380)
to restructuring costs related to the drugmaker's $20 billion
asset-swap deal with Novartis AG (NOVN.EB) (NOVN.EB).
(END) Dow Jones Newswires
February 08, 2017 12:22 ET (17:22 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Aug 2024 to Sep 2024
FTSE 100
Index Chart
From Sep 2023 to Sep 2024