UKX FTSE 100 Index

By Ryan Vlastelica

FTSE 100 is coming off longest losing streak since February

U.K. stocks rose in early trading on Thursday, staging a modest rebound from the previous session's sharp decline and putting them on track to snap their longest losing streak since February.

What are markets doing?

The U.K.'s FTSE 100 rose 0.5% to 7,532. The index is coming off a five-day losing streak, its longest streak of daily drops since February, according to FactSet. It is also coming off its biggest one-day percentage decline since June 25 on Wednesday.

Thus far this week, the index is down 1.8%. At current levels, that represents its biggest weekly decline since March.

The pound was buying $1.2708, a gain of less than 0.1% against the dollar.

What is driving the market?

Recent trading has been driven by the economic crisis in Turkey, which many investors fear could spread to other regions or hurt European banks, many of which have exposure to the region.

The issue will likely continue to dictate market action in the short term, and there are signs that the situation has stabilized. On Wednesday, it was reported that Qatar would invest $15 billion in Turkey (http://www.marketwatch.com/story/lira-spikes-as-qatar-pledges-to-invest-15-billion-in-turkey-2018-08-15), which could provide something of a lifeline.

The Turkish lira was on track for its third straight session with a pronounced gain against the dollar (http://www.marketwatch.com/story/turkish-lira-on-track-for-third-straight-gain-against-the-dollar-2018-08-16), fueling hopes that the recent all-time low represented a bottom. The lira gained 2.8% on the dollar Thursday, bringing its week-to-date move against the greenback to more than 11%. However, it is still down more than 15% thus far in August.

Don't miss:Turkey's woes won't trigger a full-blown crisis across emerging markets, economist says (http://www.marketwatch.com/story/why-turkeys-crisis-doesnt-spell-doom-for-all-emerging-market-currencies-2018-08-14)

See also:How the lira selloff compares to Turkey's previous crises (http://www.marketwatch.com/story/how-the-lira-selloff-compares-to-turkeys-previous-crises-2018-08-14)

A recovery in commodity prices added to the positive tone on the day. Brent-crude futures rose 0.5%, helping fuel a recovery in some of the large-capitalization commodity stocks that were among Wednesday's biggest decliners. BHP Billiton PLC (BLT.LN) gained 1.6% in morning trading, while BP PLC (BP.LN) was up 0.5%.

Antofagasta PLC (ANTO.LN) , one of the index's weakest performers of late -- down nearly 18% thus far this month -- rose 2.3%. Rio Tinto PLC (RIO.LN) was up 1.8%.

In another potential positive development, it was reported (http://www.marketwatch.com/story/china-says-it-will-resume-trade-talks-with-us-2018-08-16) that the Chinese Commerce Ministry would send a delegation to the U.S. later this month to resume trade talks, the first such meeting since July. The development comes at a period of elevated tensions between the two countries, which are major trading partners and which have been imposing tariffs on billions of dollars on each other's goods over the past several months. The prospect of a trade war has been one of the primary headwinds facing global equities of late.

U.K. retail sales rose 3.5% in July, compared with the 2.6% that had been expected. Excluding fuel, they were up 3.7%, above the 3.0% consensus forecast.

What stocks are in focus?

Ashley House PLC (ASH.LN) jumped 10.5% after it reported an increase in its annual profit (http://www.marketwatch.com/story/ashley-house-rallies-after-results-outlook-2018-08-16) that was partly driven by the reversal of a previous impairment.

Kingfisher PLC (KGF.LN) reported second-quarter sales growth (http://www.marketwatch.com/story/kingfisher-q2-sales-grew-after-harsh-weather-in-q2-2018-08-16), helped by improved performance of weather-related categories. But shares were down 2.5%.

Rank Group PLC (RNK.LN) tumbled 5.7% after the company said its annual profit fell sharply (http://www.marketwatch.com/story/rank-group-shares-fall-after-results-2018-08-16), citing tough conditions for its Grosvenor Casinos business, though it said it expects to meet consensus expectations for the current year.

Marshalls PLC (MSLH.LN) gained 5.4% after reporting its results (http://www.marketwatch.com/story/marshalls-rises-after-reporting-revenue-growth-2018-08-16).

(END) Dow Jones Newswires

August 16, 2018 04:55 ET (08:55 GMT)

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