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| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London close: Stocks finish week on front foot as data deluge dents pound London stocks finishing the week on the front foot as the pound lost ground after UK economic growth was revealed to have slowed to a four-year low in the second quarter and the current account deficit widened.
The FTSE 100 closed up 0.68% or 49.94 points on the day to 7,372.76, 0.85% higher for the week, while the pound was down 0.4% versus the dollar at 1.3386 and 0.55% on the euro to 1.1342, with hawkish comments from Bank of England governor Mark Carney failing to lift the currency after the release of disappointing data.
"We can see that in the coming months if the economy continues on this track it may be appropriate to raise interest rates," Carney told the BBC, though he was pretty much repeating recent comments. "If the economy continues on the track that it's been on, and all indications are that it is, in the relatively near term we can expect that interest rates will increase."
Meanwhile, the latest figures from the Office for National Statistics showed gross domestic product for the second quarter of 2017 was up only 1.5% compared to the corresponding period last year, down from the initial estimate of 1.7% and the lowest annual growth in fourth years.
However, the ONS said that compared to the first quarter of this year, the second quarter's growth remained at 0.3%, as expected.
Within the second quarter there were encouraging signs, with quarterly growth in household spending revised up to 0.2% from 0.1%, and business investment to 0.5% from 0%.
While the services sector was the only positive contribution to growth in the second quarter, the ONS revealed that the index of services decreased 0.2% during July, mostly from the transport, storage and communication sector.
National accounts data from the ONS revealed the household saving ratio picked up to 5.4% in the second quarter, the highest since the third quarter of last year, while the ratio for the first quarter was revised to 3.8% from 1.7% as part of a methodology change that saw the household saving ratio revised up on average by 0.9 percentage points between 1997 and 2016.
The current account deficit widened to 4.6% from 4.4% between the first and second quarter of 2017.
IG analyst Joshua Mahony said: "The UK economy has been the focus of market attention today, as a hawkish Mark Carney, coupled with a negative revision to the Q2 GDP reading have made for a volatile morning for the pound. Carney has laid out in pretty unambiguous terms that a rate rise could not be far away, with markets now assigning a 76.5% likeliness to a November hike.
"With elevated market expectations of a year-end BoE (81%) and Fed (67%) rate rise, along with the potential for an ECB taper, the fourth quart looks to be one which is dominated by monetary tightening."
Market participants were also digesting the latest survey from GfK, with its consumer confidence index rising a point to -9, up from a negative balance of -10 in August and building on an upward shift of two points in July.
Confidence in personal finances, current and future, slipped this month but retail sales in the UK continue to grow despite non-food prices increasing at their highest rate for 25 years, said GfK's head of market dynamics, Joe Staton.
"Consumers appear to be in a mixed mood - with some confidence measures up and others down - yet there's a strong note of defiance," Staton said.
Homeowners were mulling over the latest survey from Nationwide, which showed price growth in the UK remained broadly stable in September, but prices in London fell for the first time in eight years.
The annual rate of house price growth remained broadly stable in September at 2.0%, compared with 2.1% in August, beating expectations for a 1.9% increase. However, London prices were down 0.6% year-on-year, making the capital the weakest performing region for the first time since 2005.
On the month, UK house prices grew 0.2% compared with a 0.1% decline in August, beating expectations for a 0.1% gain.
Among top stocks, global miners Anglo American and Antofagasta led the charge on FTSE 100, after industrial profits in China increased by their highest amount in four years as the government funded projects are keeping the economy moving. Only precious metals stocks like Randgold were out of favour in the sector.
Insurer Beazley was on the front foot after saying early estimates of the net cost of Atlantic hurricanes Harvey, Irma and Maria and earthquakes in Mexico was $175m - $275m (£130m - £205m) and would cut 2017 earnings by about $150m.
ITV was boosted by an upgrade to 'overweight' at Barclays, foreseeing positive things for the UK ad market in coming quarters - though not for WPP.
Security technology group QinetiQ surged after it issued a short trading update before entering its closed period for the half year to 30 September, confirming trading was in line with expectations and the outlook for overall group performance this financial year was unchanged.
Aviva advanced as it agreed to sell its stake in Italian joint venture Avipop Assicurazioni to Banco BPM for €265m (£233m) in cash, while Sanne rallied after entered into an agreement to buy Luxembourg Investment Solutions (LIS) and Compliance Partners for up to €100m.
John Laing edged up after it announced a further wind farm investment in the state of Texas, and its third investment in the renewable energy sector in the US.
Pennon and Laing were also in focus as they said the Greater Manchester agreement has now been signed.
On the downside, Carillion shares tumbled after the construction and outsourcing group warned that full-year results would be below market forecasts as it posted a first-half loss of £1.2bn compared to a profit of £84m the year before.
Sirius Minerals ended the session around flat despite saying it remains on time and on budget as it develops its massive Woodsmith polyhalite fertiliser mine under the Yorkshire Moors. |
| | Barclays Vs Lloyds - Which is a better Buy? | | Barclays and Lloyds are two of the UK’s most popular stocks.
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In this Complimentary Guide we explain in plain English what’s really going on at these key British Banks.
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| Market Movers
FTSE 100 (UKX) 7,372.76 0.68%
FTSE 250 (MCX) 19,874.82 1.00%
techMARK (TASX) 3,489.56 0.88%
FTSE 100 - Risers
ITV (ITV) 174.70p 3.56%
Anglo American (AAL) 1,339.50p 2.64%
Antofagasta (ANTO) 949.00p 2.21%
Persimmon (PSN) 2,582.00p 2.10%
CRH (CRH) 2,837.00p 1.90%
Informa (INF) 672.00p 1.90%
Paddy Power Betfair (PPB) 7,435.00p 1.85%
Kingfisher (KGF) 298.50p 1.77%
Vodafone Group (VOD) 208.80p 1.73%
Whitbread (WTB) 3,766.00p 1.70%
FTSE 100 - Fallers
Hargreaves Lansdown (HL.) 1,480.00p -1.14%
Babcock International Group (BAB) 827.50p -0.72%
Randgold Resources Ltd. (RRS) 7,315.00p -0.48%
Smurfit Kappa Group (SKG) 2,330.00p -0.38%
3i Group (III) 913.00p -0.38%
Ashtead Group (AHT) 1,799.00p -0.22%
International Consolidated Airlines Group SA (CDI) (IAG) 593.50p -0.17%
Experian (EXPN) 1,499.00p -0.13%
Morrison (Wm) Supermarkets (MRW) 234.10p -0.09%
Marks & Spencer Group (MKS) 352.20p -0.09%
FTSE 250 - Risers
Equiniti Group (EQN) 301.20p 6.91%
Syncona Limited NPV (SYNC) 189.00p 6.00%
Kaz Minerals (KAZ) 773.50p 5.81%
QinetiQ Group (QQ.) 246.90p 5.78%
Crest Nicholson Holdings (CRST) 553.00p 5.43%
Rank Group (RNK) 222.00p 5.41%
IP Group (IPO) 137.20p 5.38%
Provident Financial (PFG) 830.50p 5.19%
Card Factory (CARD) 306.80p 4.82%
Sanne Group (SNN) 796.00p 4.74%
FTSE 250 - Fallers
Hunting (HTG) 473.80p -2.11%
Petrofac Ltd. (PFC) 450.00p -1.96%
Serco Group (SRP) 115.30p -1.45%
Pets at Home Group (PETS) 213.70p -1.43%
Tullow Oil (TLW) 186.10p -1.38%
WH Smith (SMWH) 2,021.00p -1.17%
Rotork (ROR) 260.40p -1.06%
Moneysupermarket.com Group (MONY) 318.00p -1.03%
GCP Infrastructure Investments Ltd (GCP) 126.30p -1.02% |
| | 
Top of the stocks Number of Deals Bought Number of Deals Sold |
| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe close: Moderate gains across the Continent European shares closed higher on Friday with stocks tracking the more positive sentiment seen in the Asian and US sessions.
All of Europe's main indices finished the session in the black, with the FTSE 100 up by 0.68% or 49.94 points to 7,372.76 while the Dax advanced 0.98% or 124.21 points to end at 12,828.86.
In parallel, the Cac-40 was higher by 0.68% or 36.04 points to 5,329.81 with the FTSE Mibtel ahead by 0.48% or 108.65 points to 22,696.32.
US equity markets closed mostly positive overnight as investors continued to digest President Trump's framework for tax reform.
The main focus for the Eurozone region on Friday was the 'flash' consumer price inflation figure for September, with the headline rate steady at 1.5%, against forecasts for a rise of 1.6%.
At the 'core' level, CPI slipped from 1.2% to 1.1% instead of remaining unchanged as expected.
Crude Oil prices came off their earlier lows, finishing the session up by 0.04% at $57.43 a barrel on the ICE.
In France, inflation was up slightly to 1% in September after a 0.9% rise in August. Consumer spending in the country fell an unexpected 0.3% on month, the national statistic agency Insee said.
Investors were also looking ahead to events in Spain where the illegal referendum on Catalonian independence was due to take place on sunday.
"The potential impact would be on the country's bonds unless the county's PM manages to stop the vote. The Spanish equity markets had outperformed the European peers so far this year but the recent illegal referendum situation has taken the toll on the IBEX index," said Naeem Islam at Think Markets.
Ipek Ozkardeskaya at LCG said a vote in favour of independence could weigh on the European integrity sentiment and hit the euro at next week's open.
"In addition, the government's reaction is important. Protests, a heavy-handed police intervention and political unrest could affect the euro-appetite in the aftermath of the Sunday's referendum. On the other hand, a no vote should give a better colour to the single currency. Given the light risk pricing across the euro markets, the rally could remain short-lived," she said.
In corporate news, QinetiQ said trading had been in line with expectations, and the outlook for overall group performance for the financial year remained unchanged. | | | | To advertise in the Euro Markets Bulletin please contact advertise@advfn.com |
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