LONDON MARKETS: FTSE 100 Gains Ground As ITV Bounces Up
July 26 2017 - 5:02AM
Dow Jones News
By Carla Mozee, MarketWatch
British GDP meets expectations with 0.3% rise in second
quarter
U.K. stocks moved higher Wednesday, buoyed by a rise for
broadcaster ITV PLC after its financial update, as investors waited
for an update on the health of the British economy.
The FTSE 100 index picked up 0.4% to 7,465.12, led higher by
consumer-related and oil-and-gas shares. But the financial and
basic materials sectors pulled lower. The index on Tuesday advanced
0.8%
(http://www.marketwatch.com/story/ftse-100-advances-with-oil-stocks-up-jimmy-choo-rallies-2017-07-25),
helped by gains for energy and mining stocks.
ITV (ITV.LN) topped the London benchmark early Wednesday, with a
4% rise that put the stock on course for its strongest gain since
March. The maker of "Downton Abbey" backed its 2017 guidance and
raised its dividend
(http://www.marketwatch.com/story/itv-profit-falls-16-but-dividend-is-raised-2017-07-26),
saying its 16% fall in first-half pretax profit was in line with
its expectations.
Stock movers: Compass Group PLC shares (CPG.LN) climbed 1.8%
after the catering services company said reported a rise in
third-quarter revenue and backed its full-year expectations.
Also higher, Fresnillo PLC (FRES.LN) was up 0.3%. The miner
reaffirmed its 2017 production guidance
(http://www.marketwatch.com/story/fresnillo-gold-silver-production-rises-2017-07-26)
as it reported higher silver and gold output for the second
quarter.
But Sage Group PLC (SGE.LN) shares lost 3.5% after the company
said organic software and software related services dropped by 5.9%
for the first nine months of the year. The financial software maker
also said it's buying Intacct Corp., a cloud-based financial
management software maker based in San Jose, Calif., for GBP654
million ($850 million).
Shares of engineering group GKN PLC (GKN.LN) fell 2.9% after the
company said first-half pretax profit more than tripled to 559
million pounds
(http://www.marketwatch.com/story/gkn-earnings-rise-offers-upbeat-2017-outlook-2017-07-26)($719.9
million). The aerospace and automotive parts supplier said it has
closed its defined benefit pension scheme.
Economic data: A first reading of U.K. gross domestic product in
the second quarter was released by the Office for National
Statistics. The British economy grew by 0.3% in the second quarter
over the previous quarter and was up 1.7% year-over-year, meeting
expectations from a FactSet survey of economists. In the first
quarter, GDP expanded by modest 0.2%.
British economic growth in the second quarter was driven by the
services sector, while production and construction acted as a drag,
the ONS said in its statement
(https://www.ons.gov.uk/economy/nationalaccounts/uksectoraccounts/articles/monthlyeconomiccommentary/july2017).
"The economy has experienced a notable slowdown in the first
half of this year," ONS Head of National Accounts Darren Morgan
said.
The pound edged down to $1.3007 after the GDP release, compared
with $1.3011 ahead of the data and $1.3026 late Tuesday in New
York.
A report on services-sector activity in May is scheduled for
release at 9:30 a.m. London time.
After trading closes in London, the U.S. Federal Reserve will
announce its latest monetary policy decision. U.K. investors
closely watch U.S. central bank moves, as they can drive price
changes in the pound and in government bonds, as well as shift
sentiment.
See:Fed to stick to plans for rate hike, balance-sheet selloff
this year
(http://www.marketwatch.com/story/no-retreat-fed-to-stick-to-plans-for-rate-hike-balance-sheet-selloff-this-year-2017-07-24)
The Federal Open Market Committee decision is due at 7 p.m.
London time, or 2 p.m. Eastern.
(END) Dow Jones Newswires
July 26, 2017 04:47 ET (08:47 GMT)
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