By Carla Mozee, MarketWatch
U.K. retail sales pullback in January
LONDON (MarketWatch) -- U.K. stocks hugged the flatline Friday,
but Standard Life PLC shares outperformed after the investment
manager released its financial results.
Meanwhile, the pound lost ground against the U.S. dollar after
monthly U.K. retail sales fell by more than analysts had
expected.
Sterling: The British currency (GBPUSD) slipped to $1.5358 from
$1.5366 after U.K. sales fell 0.3% in January, more than the 0.2%
decline forecast in a FactSet poll of analysts. The pound was
buying $1.5416 late Wednesday.
The Office for National Statistics noted "a significant increase
in the quantity bought in petrol stations and department stores,
but this did not negate the downwards pressure from predominantly
food stores, textile, clothing and footwear and other stores."
The euro (EURGBP), meanwhile, stepped higher against sterling,
buying 73.71 pence versus 73.63 pence ahead of the data. The shared
currency earlier Friday had hovered around a seven-year low against
the pound.
Stocks: The FTSE 100 was up 1 point at 6,890.78, with gains for
industrial , financial and mining shares barely edging out losses
for retail and consumer-goods stocks.
But Standard Life was higher by 3.2% after the
financial-services company said assets under management last year
increased 38% to about 300 billion pounds
(http://www.marketwatch.com/story/standard-life-assets-under-management-rises-38-2015-02-20)
($460 billion), aided by rising financial markets and its
acquisition of Ignis Asset Management. Pretax profit rose 19% to
GBP604 million.
At the bottom of the benchmark was Kingfisher PLC , the
home-improvement retailer whose brands include B&Q and
Screwfix. Its shares fell 2.5% following a downgrade to an
underweight rating, from equalweight, at Barclays. "We do not share
the bulls' optimism about a QE-led French housing-market
improvement," wrote analyst Christodoulos Chaviaras. "At the same
time, in the U.K., competitive pressure intensifies as B&Q
remains overspaced with an inflexible cost structure."
The FTSE 100 was on track for a weekly gain of 0.3%.
Investors will also keep watch on developments out of Brussels,
where eurozone finance ministers were expected to discuss Greece's
request of a loan extension
(http://www.marketwatch.com/story/positive-climate-as-greeces-tsipras-speaks-with-german-chancellor-merkel-2015-02-19).
Germany on Thursday rejected the Greek government's proposal.
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