LONDON MARKETS: FTSE 100 Inches Higher, But Stops Short Of Record Close
October 23 2017 - 12:29PM
Dow Jones News
By Carla Mozee, MarketWatch
GKN reportedly considering splitting up in two
U.K. stocks ended a choppy session marginally higher on Monday,
with traders opting to err on the side of caution ahead of a busy
week of economic data and earnings.
The FTSE 100 index rose 0.02% to close at 7,524.45, leaving it
within touching distance of its record close of 7,556.24 hit
earlier in October.
"Ahead of a big week for earnings and monetary policy, it has
not been surprising to see the remarkable stock market rally of the
past two months pause for breath," said Chris Beauchamp, chief
market analyst at IG, in a note.
On Wednesday U.K. growth data for the third quarter come out,
while all eyes will be on the European Central Bank on Thursday
where the policy makers are expected to lay out a timetable for
tapering monthly asset purchases.
Meanwhile, Bank of England Deputy Gov. Jon Cunliffe once again
against struck a cautious tone about a possible rate increase in
November. Rates may have to increase but it's an "open question" on
the timing of such as move, Cunliffe told the Western Mail
newspaper in Wales in an interview published Monday
(http://www.walesonline.co.uk/business/business-news/interest-rates-go-up-not-13799399).
The pound traded at $1.3198, up from $1.3188 late Friday in New
York.
Corporates: GKN PLC (GKN.LN) gained 5.1% following a Sunday
Times report the company is considering a split of its aerospace
and automotive businesses
(https://www.thetimes.co.uk/article/gkn-which-makes-wing-tips-for-airbus-and-parts-for-mercedes-eyes-split-to-create-two-ftse-champions-x7c2t6bj0).
Spire Healthcare Group PLC shares (SPI.LN) rallied 15% on the
midcap FTSE 250 after Spire rejected a preliminary takeover
approach from major shareholder Mediclinic International PLC
(http://www.marketwatch.com/story/spire-rejects-mediclinics-16-bln-takeoveroffer-2017-10-23)(MDC.LN).
The offered valued Spire at about GBP1.20 billion ($1.59 billion).
Mediclinic shares fell 2.7% on the FTSE 100.
Also off the FTSE 100, Pendragon PLC shares (PDG.LN) plunged 18%
after the auto dealer issued a profit warning, citing a decline in
demand for new cars and a price correction for used cars. Pendragon
also said Chairman Mel Egglenton has stepped down with immediate
effect for personal reasons.
"It's the latest sign of retail-woe in the U.K., especially
among companies dealing with big ticket items, as the household
spending squeeze continues," said Spreadex financial analyst Connor
Campbell in a note.
CRH PLC shares picked up 1% after the building materials
supplier won support of its planned takeover of Ash Grove Cement
Co. (ASHG).
(END) Dow Jones Newswires
October 23, 2017 12:14 ET (16:14 GMT)
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