By Carla Mozee, MarketWatch
Carnival downgraded
LONDON (MarketWatch) -- The U.K.'s FTSE 100 finished at a record
close Monday, as resource shares improved.
The benchmark FTSE 100 turned up 0.2% to 7,037.67, with Standard
Chartered PLC topping the benchmark.
Standard Chartered rallied 6.5% as Citi raised its price target
on shares of the Asia-focused lender to GBP13 from GBP12.50, and
said the recent appointment of Bill Winters as the company's chief
executive
(http://www.marketwatch.com/story/standard-chartered-names-bill-winters-next-ceo-as-it-shakes-up-top-brass-2015-02-26)
"puts the spotlight back on an unloved stock." Value at Standard
Chartered "can be unlocked" by prioritizing costs, credits and
capital, among other factors, said Citi analysts.
The mining group had been in the red earlier in the session, but
found support as prices for some metals, including copper, platinum
and gold, shed losses. Shares of iron ore heavyweight BHP Billiton
PLC climbed 3.4%, Glencore PLC rose 2.6% and Anglo American PLC
switched higher, trading up 1.2%.
Meanwhile, shares of oil producer Royal Dutch Shell PLC picked
up 2% and BG Group PLC rose 0.7% as oil prices
(http://www.marketwatch.com/story/oil-prices-fall-after-saudis-vow-not-to-blink-on-production-cuts-2015-03-23)(CLK5)
reversed losses. But oil major BP PLC lagged behind, losing
0.7%.
Also, energy engineering firm Weir Group PLC fell 2.2%, nearly
wiping out last week's 3% gain. RBC Capital Markets on Monday
lowered its view on Weir to sector perform from top pick.
A rally in energy and mining shares on Friday, aided by the
impact of a drop in the U.S. dollar (DXY) on dollar-denominated
resources, helped push the FTSE 100 to a record-high close of
7,022.51
(http://www.marketwatch.com/story/ftse-100-edges-up-but-on-track-for-best-week-in-two-months-2015-03-20).
Friday was the first session in which the blue-chip index rose
above 7,000. The dollar on Friday resumed a selloff on expectations
that Federal Reserve policy makers would leave interest rates lower
for longer.
(http://www.marketwatch.com/story/fed-takes-step-to-rate-hike-but-scales-back-intended-pace-2015-03-18)
But investors should "not read too much into the recent new
high", said Tom Elliott, international investment strategist at
deVere Group, in a note early Monday.
"We are nervous of buying into a rally that is less about
improved corporate earnings forecasts, and more about delving into
the tea leaves of statements from the U.S. Fed regarding Janet
Yellen's use of the word 'patient'," Elliott added.
Meanwhile on Monday, shares of Carnival PLC fell 1.6% after
Deutsche Bank cut its rating on the cruise operator to hold from
buy. Carnival's first-quarter update is likely to show further
bookings and pricing recovery, among other improvements, but
significant moves in the euro and the pound could lead to fiscal
year 2015 per-share earnings guidance being reduced by about 8%,
the bank's analysts said.
Hikma Pharmaceuticals PLC ended unchanged in its first day
trading as part of the FTSE 100.
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