LONDON MARKETS: FTSE 100's Lower Close Seen As 'a Pause For Last Week's Global Rebound'
February 19 2018 - 12:48PM
Dow Jones News
By Carla Mozee and Victor Reklaitis, MarketWatch
Analyst: 'Equities are a shade offside to start the new
week'
U.K.'s blue-chip stocks finished in the red Monday after last
week's strong performance, with losses for consumer-goods
heavyweight Reckitt Benckiser Group PLC pressuring the London
market's benchmark.
How markets are moving
The FTSE 100was down 0.6% to end at 7,247.66.
The index last week gained 2.9%
(http://www.marketwatch.com/story/ftse-100-rises-on-track-to-break-weekly-losing-streak-2018-02-16),
representing its strongest week since December 2016.
Read:Which markets are closed on Presidents Day?
(http://www.marketwatch.com/story/which-markets-are-closed-on-presidents-day-2018-02-14)
The poundtraded at $1.4001, down moderately from $1.4033 late
Friday in New York.
The yield on the 10-year giltwas recently up 2 basis points at
1.59%, according to Tradeweb. Yields rise when prices fall.
Check out: More investors looking to cut U.K. assets as Brexit
uncertainty persists
(http://www.marketwatch.com/story/more-investors-looking-to-cut-uk-assets-as-brexit-uncertainty-persists-2018-02-16)
What's moving markets
The U.K. market pulled back after rising in three consecutive
sessions last week, taking part in a global rebound for equities
following an early-February meltdown that yanked the S&P 500and
other major benchmarks from record highs.
But on Friday, Wall Street's rally
(http://www.marketwatch.com/story/dow-ready-to-hold-above-25000-as-us-stocks-line-up-best-week-more-than-a-year-2018-02-16)
"showed signs of running out of steam" as indexes finished well
below session highs," said Jasper Lawler, head of research at
London Capital Group, in a Monday note.
"Global equities are a shade offside to start the new week with
holidays in Asia (Lunar New Year) and the U.S. (Presidents Day)
reducing trading volumes," said Mike van Dulken, head of research
at Accendo Markets, in a note.
"This means a pause for last week's global rebound. However, it
may prove timely in terms of providing investors with a little more
time to digest and decide -- ahead of a busy corporate update
roster -- whether the recovery merits another up-leg," he said.
Banking heavyweights HSBC PLC(HSBA.LN)and Barclays PLC(BCS)are
among the companies expected to release financial updates in the
coming days.
Stock movers
Reckitt Benckiser Group(RB.LN)dropped 7.5% as the maker of
Lysol, Clearasil and other consumer products posted flat
like-for-like 2017 sales
(http://www.marketwatch.com/story/reckitt-benckiser-2017-profit-rises-on-weak-pound-2018-02-19),
although that was in line with guidance that had been revised
downward over the course of the year. It was the FTSE 100's biggest
loser.
Mining stocks were lower after the U.S. government late Friday
said it's considering tariffs to curb imports of steel and aluminum
(http://www.marketwatch.com/story/trump-administration-weighs-tariffs-to-curb-steel-aluminum-imports-2018-02-16)
to protect national security. Among decliners, Fresnillo
PLC(FRES.LN)was off 2.8% and iron ore miner Rio Tinto PLC(RIO)shed
1.2%.
(END) Dow Jones Newswires
February 19, 2018 12:33 ET (17:33 GMT)
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