LONDON MARKETS: FTSE 100 Jumps Friday But Remains On Track For Weekly Loss
August 03 2018 - 8:39AM
Dow Jones News
By Victor Reklaitis, MarketWatch
RBS and Mondi shares are among the blue-chip gauge's big
winners, while British Airways parent IAG falls
The U.K.'s main equity gauge climbed Friday but stayed on track
for a weekly drop, getting a lift from tech-sector cheer and Mondi
PLC's and Royal Bank of Scotland Group PLC's encouraging
updates.
Worries over Brexit and global trade tensions remained part of
the backdrop.
How markets are performing
The FTSE 100rose 0.9% to 7,646.71, erasing most of Thursday's
fall of 1%
(http://www.marketwatch.com/story/ftse-100-slips-on-worry-us-will-ratchet-up-chinese-tariffs-2018-08-01).
The British blue-chip gauge is still down for the week, off by
0.7%, and it's showing a 0.5% decline for 2018.
The poundwas buying $1.3023, up slightly from $1.3014 late
Thursday in New York.
What's moving markets
There was pressure on equities around the world in the prior
session, after U.S. President Donald Trump's administration late
Wednesday confirmed that it's considering more than doubling to 25%
(http://www.marketwatch.com/story/trump-seeks-25-tariffs-on-200-billion-of-goods-imported-from-china-2018-08-01)
its proposed tariffs on $200 billion in Chinese goods.
But the main American stock indexesshook off trade-related fears
and mostly closed higher Thursday
(http://www.marketwatch.com/story/us-stock-benchmarks-poised-to-slump-as-trade-angst-rattles-global-markets-2018-08-02)
on the back of tech titan Apple Inc.'s(AAPL)rally to a market cap
above $1 trillion
(http://www.marketwatch.com/story/apple-crosses-threshold-needed-for-1-trillion-market-cap-2018-08-02),
and other major stock markets appeared to be following suit
Friday.
On the Brexit front, Bank of England Gov. Mark Carney warned
Friday that there is an "uncomfortably high
(http://www.marketwatch.com/story/boes-carney-warns-chance-of-no-deal-brexit-is-uncomfortably-high-2018-08-03)"
chance of the U.K. crashing out of the European Union without a
transition agreement, which could rattle the economy.
Traders may react to U.K. Prime Minister Theresa May's planned
meeting with French President Emmanuel Macron in France on Friday.
French officials reportedly have said
(https://news.sky.com/story/theresa-may-and-emmanuel-macron-meet-on-the-french-riviera-with-brexit-compromise-hopes-11459012)
the rendezvous isn't a negotiation, and it doesn't take the place
of Brexit talks led by the European Union's chief negotiator,
Michel Barnier.
A disappointing July figure for U.K. services also was getting
some attention Friday. Markit's services purchasing-manager index
came in at 53.5, below expectations for a reading of 54.7,
according to FactSet data.
In addition, investors are bracing for a U.S. monthly jobs
report
(http://www.marketwatch.com/story/us-jobs-report-for-july-likely-to-be-another-good-one-but-the-real-story-is-rising-wages-2018-08-02),
due to hit at 1:30 p.m. London time, or 8:30 a.m. Eastern time.
Economists polled by MarketWatch predict the world's largest
economy added 195,000 jobs in July.
What are strategists saying?
-- "A rising Apple share price helped lift all boats," said
Michael Hewson, chief market analyst at CMC Markets UK, in a note
Friday, referring to the U.S. stock market's rebound.
"This Apple-inspired rebound is likely to offer a respite for
markets in Europe this morning ahead of today's U.S. payrolls
report," Hewson added.
Stocks in focus
Shares in Mondi(MND.JO)soared 7% for the FTSE 100's biggest gain
after the packaging and paper company reported a higher first-half
pretax profit and raised its dividend
(http://www.marketwatch.com/story/mondi-pretax-profit-rises-6-on-higher-prices-2018-08-03).
Shares in RBS(RBS.LN)tacked on 4% as the lender said it will pay
its first dividend
(http://www.marketwatch.com/story/rbs-to-pay-first-dividend-in-10-years-2018-08-03)
in 10 years while posting its results.
International Consolidated Airlines Group SA's stock(IAG.LN)fell
3% for the FTSE's largest drop after the British Airways parent
said second-quarter profit rose, but passenger unit revenue for the
quarter declined
(http://www.marketwatch.com/story/british-airways-parent-iag-profit-rises-2018-08-03).
IAG CEO Willie Walsh also said the company would sell its small
stake in Norwegian Air Shuttle ASA(NAS.OS)if its efforts to acquire
the budget carrier fail. Norwegian Air shares were up 0.6%.
(END) Dow Jones Newswires
August 03, 2018 08:24 ET (12:24 GMT)
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