LONDON MARKETS: FTSE 100 Aims To Break Losing Streak As Tesco, Vodafone Bounce Higher
November 14 2017 - 4:47AM
Dow Jones News
By Carla Mozee, MarketWatch
U.K. stocks stepped higher Tuesday, eyeing their first win in
four sessions, as corporate cheer helped offset investor concerns
about the U.K.'s political stability and the Brexit process.
Shares of Tesco PLC rose to top the FTSE 100 after a merger deal
cleared a major hurdle.
In focus is the release of October inflation figures, the first
reading since the Bank of England raised interest rates for the
first time in a decade
(http://www.marketwatch.com/story/5-key-carney-quotes-after-boe-hikes-rates-for-first-time-in-a-decade-2017-11-02)
earlier this month.
After increasing pressure on Prime Minister Theresa May sent
jitters through the pound, investors will watch a key parliamentary
session on the Brexit repeal bill.
What markets are doing: The FTSE 100 index rose 0.2% to
7,428.96, with telecoms, tech and health care shares among
advancers. But commodity and consumer goods shares were losing
ground. On Monday, the London benchmark closed down 0.2%
(http://www.marketwatch.com/story/ftse-100-heads-for-a-win-as-political-turmoil-drags-down-the-pound-2017-11-13)
to reach its lowest level since late September.
The pound traded at $1.3117, little changed from $1.3115 late
Monday in New York. Against the euro, sterling bought EUR1.1212,
down from EUR1.1240 late Monday.
What's moving markets: The Office for National Statistics is
slated to release its report on consumer inflation for October at
9:30 a.m. London time, or 4:30 a.m. Eastern Time.
Analysts polled by FactSet are looking for an annual rise to
3.1%, which is well beyond the Bank of England's 2% inflation
target. The central bank has said inflationary pressures largely
stem from the drop of the pound's value since last year's Brexit
vote.
The pound rose to regain the $1.31 handle after the U.K.
government said late Monday that parliament will get a chance to
vote on whether to accept the final Brexit deal. The currency fell
after a Sunday Times report
(https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0ahUKEwjJwKegh7vXAhVD2KQKHX25AqkQqUMILDAB&url=https%3A%2F%2Fwww.thetimes.co.uk%2Farticle%2Ftory-turmoil-as-40-mps-say-may-must-go-kkg3w6l89&usg=AOvVaw0P3ydYgZ0X_1ThNri40pNZ)
at the weekend said 40 Conservative members of parliament have
agreed to sign a letter of no confidence in May.
On Tuesday, parliamentary lawmakers will discuss a bill to
repeal the law that allowed the U.K. to join the EU.
Check out:Is British leader Theresa May on her way out? Why
that's the fear--and why it matters
(http://www.marketwatch.com/story/is-british-leader-theresa-may-on-her-way-out-why-thats-the-fear-and-why-it-matters-2017-11-09)
What strategists are saying: "Today's latest October CPI number
is expected to see inflation push above the 3% level for the first
time since April 2012 and prompt the Governor of the Bank of
England to write a letter to the Chancellor of the Exchequer and
explain why the central bank has missed its inflation target of 2%
by more than 1%," said Michael Hewson, chief market analyst at CMC
Markets.
"One thing is certain the letter isn't expected to be in the
form of a mea culpa," he said. "While inflation is expected to
remain sticky, the U.K. economy has still managed to post some
fairly decent numbers in manufacturing as well as services in the
past month or so, as the economy continues to prove itself fairly
resilient to all the hyperbole uncertainty surrounding the ongoing
Brexit discussions."
Opinion:Brexit hard-liners are selling England by the pound
(http://www.marketwatch.com/story/brexit-hardliners-are-selling-england-by-the-pound-2017-11-09)
Stock movers: Tesco shares (TSCO.LN) popped up 4.9% after the
U.K. Competition and Markets Authority provisionally cleared a
merger between Tesco and wholesaler Booker Group (BOK.LN) . Booker
shares off the FTSE 100 climbed 5.2%.
Meanwhile, J Sainsbury PLC (SBRY.LN) rose 1.1% after Kantar
Worldpanel
(http://www.marketwatch.com/story/aldi-lidl-continue-to-build-uk-market-share-2017-11-14)said
the grocer's sales rose 2.6% in the 12 weeks to Nov. 5, the
stronger performance of the so-called Big Four supermarkets. Shares
of Wm Morrison Supermarkets (MRW.LN) were up 0.4%.
Vodafone (VOD.LN) (VOD.LN) jumped 4.4% after the company raised
its outlook for fiscal 2018, with pretax profit for the first half
rising 55% year-over-year.
(END) Dow Jones Newswires
November 14, 2017 04:32 ET (09:32 GMT)
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