LONDON MARKETS: FTSE 100 Logs First Gain In 5 Days
April 20 2017 - 12:10PM
Dow Jones News
By Sara Sjolin, MarketWatch
Rio Tinto shares rise after miner holds to iron ore view
U.K. stocks ended a wobbly session slightly higher on Thursday
after a mixed bag of corporate results, including well-received
earnings from consumer giant Unilever PLC.
The FTSE 100 index rose 0.1% to close at 7,118.54, bouncing back
from the lowest close since Feb. 1 that it logged on Wednesday.
Stocks have been sliding in recent days, with the fall
continuing after U.K. Prime Minister Theresa May called a snap
general election for June 8. The FTSE on Wednesday erased its
yearly gain, dropping 0.5% after falling for four straight
sessions.
May's move to call an election Tuesday spurred a rally in the
pound to its highest since October and sterling has been trading
around that level since. It bought $1.2839 on Thursday morning, up
from $1.2779 late Wednesday in New York. Analysts put sterling's
surge down to hopes for a bigger Conservative majority in
parliament, which could put the U.K. in a stronger position to
negotiate Brexit with Brussels.
Read:Why the snap U.K. election is a 'game-changer' for the
pound
(http://www.marketwatch.com/story/heres-why-the-pound-surged-to-10-week-high-after-may-called-snap-uk-election-2017-04-18)
A stronger pound tends to weigh on the FTSE as it weighs on the
financial results of the index's many multinationals that make the
bulk of their earnings overseas.
However, on Thursday a gain for Unilever (ULVR.LN) (ULVR.LN)
shares after it posted earnings helped lift the London benchmark.
Shares of the consumer-products giant closed up 0.3% after it
reported a rise in underlying sales for the first quarter
(http://www.marketwatch.com/story/unilever-sales-rise-but-lag-in-europe-us-2017-04-20).
Shares of Rio Tinto PLC (RIO) (RIO) (RIO) added 1.2% after the
mining major trimmed its copper production target, but stuck to its
guidance for iron ore
(http://www.marketwatch.com/story/rio-tinto-trims-copper-production-target-2017-04-20).
Burberry Group PLC (BRBY.LN) (BRBY.LN) gained 1.7%, partly
recovering from a 7.9% slide on Wednesday when the luxury-goods
company said underlying revenue fell in the second half of its
financial year
(http://www.marketwatch.com/story/burberry-revenue-down-but-boosted-by-fx-gains-2017-04-19).
Outside the main benchmark, shares of Debenhams PLC (DEB.LN)
sank 5.1% after the department-store group reported a drop in
profit
(http://www.marketwatch.com/story/debenhams-profit-falls-interim-dividend-unchanged-2017-04-20).
(END) Dow Jones Newswires
April 20, 2017 11:55 ET (15:55 GMT)
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