LONDON MARKETS: FTSE 100 Wobbles, But Keeps Weekly Win In Sight
July 21 2017 - 8:06AM
Dow Jones News
By Carla Mozee, MarketWatch
Oil majors lose ground; U.K. government borrowing increases
U.K. stocks wavered on Friday, but Britain's blue-chip benchmark
was still on track for its best week in more than two months.
Vodafone PLC was a standout as shares of the mobile telecom
company climbed, but oil majors lost ground ahead of a meeting of
the Organization of the Petroleum Exporting Countries.
The FTSE 100 index tilted down by 3 points at 7,485.31. Oil and
gas, consumer-related, utility and industrial stocks were on the
decline, but health care and basic material shares nudged up.
A win Friday would be the London benchmark's third in a row. It
was on course for a weekly rise of 1.5%, which would be its
sharpest advance since the week ended May 12, FactSet data
showed.
U.K. stocks on Thursday marked their highest close since
mid-June
(http://www.marketwatch.com/story/ftse-100-lifted-as-unilever-advances-with-ecb-meeting-in-focus-2017-07-20),
in part as the pound fell against the dollar. U.K. officials
wrapped up round two of Brexit talks on Thursday, with British and
EU officials clashing over the U.K.'s bill for exiting
(http://www.marketwatch.com/story/uk-eu-clash-over-divorce-bill-as-round-2-of-brexit-talks-wrap-up-2017-07-20)
from the bloc.
Stock movers: Vodafone (VOD.LN) picked up 1.4% after the mobile
phone services provider reiterated its earnings outlook for the
full year
(http://www.marketwatch.com/story/vodafone-revenue-drops-on-forex-effects-2017-07-21).
Among other top advancers in London trade were British American
Tobacco PLC (BATS.LN) and apparel and home furnishings seller Next
PLC (NXT.LN) , with each rising 0.8%.
On the downside, Paddy Power Betfair PLC fell 3.4% and easyJet
PLC (EZJ.LN) dropped 3%, extending losses logged Thursday after the
budget airline's third-quarter update.
(http://www.marketwatch.com/story/easyjet-quarterly-unit-revenue-turns-positive-2017-07-20)
Off the benchmark, Paysafe Group PLC (PAYS.LN) leapt 7% after
the British electronic payments company said Friday it received a
possible all-cash buyout offer
(http://www.marketwatch.com/story/paysafe-shares-jump-on-38-billion-bid-2017-07-21)
from funds managed by Blackstone and CVC Capital Partners. The bid
represented an 8.9% premium to Thursday's closing price of GBP5.42
a share.
OPEC ahead: Royal Dutch Shell PLC (RDSB.LN) and BP PLC (BP.LN)
were off 0.5% and 0.3%, respectively, as oil prices swung
lower.
The oil market will be in focus as OPEC oil ministers are set to
gather Monday for a monthly meeting to monitor producer compliance
with output quotas. Also Friday, rig-count figures from the U.S.
are due.
Read:How OPEC committee's coming meeting could make or break oil
prices
(http://www.marketwatch.com/story/how-opec-committees-coming-meeting-could-make-or-break-oil-prices-2017-07-20)
Bucking Europe: The FTSE 100 did during Friday's session
outperform European stocks (), which dropped Thursday as the euro
rallied to a two-year high above $1.16.
Read:Nobody told the euro that Mario Draghi was dovish
(http://www.marketwatch.com/story/nobody-told-the-euro-that-mario-draghi-was-dovish-2017-07-20)
Those moves came after European Central Bank President Mario
Draghi said the bank's bond-buying program will be discussed in the
"autumn," and as investors brushed past the dovish tone about
monetary stimulus that Draghi struck at his press conference.
On Friday, losses for the pan-European Stoxx Europe 600 picked
up in afternoon trade, while the euro continued to rise.
The pound fetched EUR1.1173 on Friday, higher than EUR1.1153
late Thursday in New York. Against the dollar, sterling changed
hands at $1.3009, up from $1.2973.
A stronger pound can hurt shares of FTSE 100-listed
multinational companies that make most of their revenue and
earnings in overseas markets.
Data:U.K. government borrowing
(Public-sector%20borrowing%20to%20cover%20the%20shortfall%20between%20taxes%20and%20spending%20was%20GBP22.8%20billion%20($29.59%20billion))
to cover the shortfall between taxes and spending increased to
GBP22.8 billion ($29.59 billion) on the year in the three months
through June, as quickening inflation pushed up the cost of
servicing the country's debt.
(END) Dow Jones Newswires
July 21, 2017 07:51 ET (11:51 GMT)
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