LONDON MARKETS: FTSE 100 Rises, Helped By Unilever's Leap And Pound's Drop
February 17 2017 - 8:13AM
Dow Jones News
By Victor Reklaitis, MarketWatch
Sterling falls after disappointing U.K. retail sales
U.K. stocks gained Friday, adding to their weekly advance,
boosted by Unilever PLC's jump on buyout-related news and the
pound's drop after discouraging data on U.K. retail sales.
The FTSE 100 moved higher by 0.3% to 7,301.56, after trading in
the red in morning action. The rise put the blue-chip benchmark on
pace for a 0.6% gain for the week.
On Thursday, the index lost 0.3%, retreating from a one-month
closing high reached in the prior session.
Shares in consumer-products giant Unilever PLC (ULVR.LN)
(UNA.AE) (ULVR.LN) soared 14%, powered by U.S. packaged-foods
heavyweight Kraft Heinz Co. (KHC) announcing that it made a merger
proposal
(http://www.marketwatch.com/story/kraft-heinz-confirms-merger-proposal-with-unilver-was-declined-2017-02-17)
to Unilever that was declined.
The pound was trading at $1.2427, down from $1.2494 late
Thursday, as traders reacted to a January report on U.K. retail
sales. The report showed a month-over-month drop of 0.3%, missing
forecasts for a rise.
The retail sales number was "really weak," showing British
consumers are starting to feel the squeeze due to a pickup in
inflation
(http://www.marketwatch.com/story/uk-inflation-hits-2-year-high-beats-views-2017-01-17),
said Naeem Aslam, chief market analyst at Think Markets UK, in a
note.
"The net impact on the currency after the data was bad, and we
have seen traders putting more short trades against the
sterling-dollar pair," he added.
The FTSE 100 lifted off its session low as sterling slumped. A
weaker pound often boosts the London benchmark as around 75% of the
index's revenues come from overseas in other currencies.
Investors also were digesting U.S. President Donald Trump's
lengthy press conference
(http://www.marketwatch.com/story/trump-attacks-media-during-lengthy-press-conference-2017-02-16)
on Thursday, in which he said he "inherited a mess" at home and
abroad, and blasted the news media.
Movers: Coca-Cola HBC AG's shares gained 2.5% for one of the
FTSE 100's biggest gains. The stock is building on Thursday's jump
of 4.9%, which came after the bottling company said profit rose
last year
(http://www.marketwatch.com/story/coca-cola-hbc-2016-profit-up-lifts-dividend-2017-02-16).
AstraZeneca PLC (AZN.LN) (AZN.LN) rose 2.3% after the drug
company announced positive results from a trial
(http://www.marketwatch.com/story/astrazeneca-breast-cancer-drug-trial-positive-2017-02-17)
of its breast cancer treatment Lynparza.
Asia-focused bank Standard Chartered PLC (STAN.LN) gave up 3.3%
for the FTSE's largest loss.
(END) Dow Jones Newswires
February 17, 2017 07:58 ET (12:58 GMT)
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