LONDON MARKETS: FTSE 100 Drags, Keeping Weekly Loss On The Radar
May 06 2016 - 5:07AM
Dow Jones News
By Carla Mozee, MarketWatch
Blue-chips benchmark down more than 2% for the week
Stocks in the U.K. slipped Friday, as shares of InterContinental
Hotels Group PLC came under pressure after a trading update, and as
investors round off what's set to be a losing week for equities
with a look at key U.S. labor-market data.
The FTSE 100 was down 0.3% to 6,098.19, with only the utilities
sector registering a gain, according to FactSet data.
Among decliners, Inmarsat PLC (ISAT.LN) shares fell 5.2%,
building on Thursday's 7.2% slide after the satellite company cut
its full-year sales outlook
(http://www.marketwatch.com/story/inmarsat-cuts-revenue-guidance-on-energy-slowdown-2016-05-05).
Commodity shares were also in the red, with oil majors BP PLC
(BP.LN) (BP.LN) and Royal Dutch Shell PLC (RDSB.LN) (RDSB.LN)lower
as oil prices struggled.
The FTSE 100 was on course for a 2.3% weekly decline. That would
mark a third consecutive weekly loss, and the largest weekly
pullback since the week ended Feb. 12, according to FactSet.
"Market sentiment seems to be rather cautious as traders prepare
for the latest non-farm payrolls report, and one which could help
to determine the chances of a rate hike by the [Fed] in June," said
Richard Perry, market analyst at Hantec Markets, in a note.
"After a somewhat muted session yesterday, once more there is
little real indication that traders are willing to take a view on
the dollar this morning ahead of such a high volatility event," he
said.
The pound was little changed at $1.4495 ahead of the April data,
which are due at 1:30 p.m. London time, or 8:30 a.m. Eastern Time.
Economists surveyed by MarketWatch forecast a 203,000 gain in
nonfarm jobs last month
(http://www.marketwatch.com/story/another-boom-in-jobs-if-not-pay-seen-in-april-payrolls-report-2016-05-05).
The unemployment rate is seen dipping to 4.9% from 5%.
Meanwhile, shares of InterContinental Hotels Group PLC (IHG)
fell 1.2%. The owner of the Holiday Inn, Crowe Plaza and other
hotel chains said the earlier timing of the Easter holiday "had an
adverse impact across the industry, especially in the Americas and
Europe, which we expect to reverse in Q2." First-quarter global
revenue per room rose 1.5%, said IHG.
IHG had a "slow start to 2016%, said analysts at Numis in a
note. "In our view, there is increasing evidence that the U.S.
hotel industry is close to a cyclical peak and that this may
stimulate further consolidation in the sector."
In the mining space, BHP Billiton PLC (BLT.LN) (BHP.AU) (BHP.AU)
shares were down 1.1%. The mining heavyweight in a Friday statement
said a Brazilian court on Thursday approved a restoration agreement
reached in March with some Brazilian authorities over the deadly
Samarco dam collapse in November.
This week, federal prosecutors in Brazil
(http://www.marketwatch.com/story/mining-firms-bhp-vale-face-44b-lawsuit-in-brazil-2016-05-03)
filed a civil lawsuit seeking 155 billion reals ($43.84 billion)
for cleanup and remediation from BHP and Vale SA (VALE5.BR)
(VALE5.BR), which run the Samarco joint venture.
(END) Dow Jones Newswires
May 06, 2016 04:52 ET (08:52 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Mar 2024 to Apr 2024
FTSE 100
Index Chart
From Apr 2023 to Apr 2024