LONDON MARKETS: FTSE 100 Climbs As Investors Embrace Risk Before U.S. Inflation Data
February 14 2018 - 04:27AM
Dow Jones News
By Carla Mozee, MarketWatch
U.K. stocks bounced higher Wednesday, with banks and Sky PLC
among the best performers as all sectors advanced before the
release of key U.S. inflation figures.
How markets are performing
The FTSE 100 rose 0.6% to 7,210.94. All sectors were in positive
territory, led by the financial and consumer goods groups. On
Tuesday, the benchmark fell 0.1%
(http://www.marketwatch.com/story/ftse-100-wobbles-with-investors-on-edge-2018-02-13)
after a choppy session.
The pound traded at $1.3882, slightly lower than $1.3894 late
Tuesday in New York.
What's moving markets
Investors appeared in the mood to take on more risk in the wake
of a third winning session on Tuesday for U.S. stocks
(http://www.marketwatch.com/story/third-straight-win-for-us-stocks-in-doubt-as-dow-futures-tumble-more-than-100-points-2018-02-13),
which overcame early losses to finish higher. The Dow Jones
Industrial Average ended up 0.2%, and the S&P 500 Index rose
0.3%.
The advances came before the release of the U.S. consumer-price
inflation report
(http://www.marketwatch.com/story/inflation-fears-haunt-wall-street-again-but-investors-might-just-be-having-a-bad-dream-2018-02-10)
for January. Worries that higher prices will lead the U.S. Federal
Reserve to hike up interest rates at a faster-than-expected pace
have contributed to the spike in volatility and the recent rout in
global equities. If the CPI rate comes in hotter than anticipated,
it could spark another selloff.
That report is due at 1:30 p.m. London time, or 8:30 a.m.
Eastern Time.
Bank stocks across the U.K. and Europe headed higher, appearing
to take the lead from Swiss heavyweight Credit Suisse Group AG
(CSGN.EB) (CSGN.EB) , whose shares climbed more than 3% after the
company posted a narrower loss than expected for the fourth quarter
(http://www.marketwatch.com/story/credit-suisse-loses-1-bln-in-2017-on-us-tax-hit-2018-02-14).
What strategists are saying
"The U.S. inflation report will be of particular interest to
investors: a slower reading -- as expected -- will downplay
expectations for more aggressive tightening from the Fed, which
will in turn allow equities the opportunity to recover further
today," said ADS Securities analyst Konstantinos Anthis in a note.
"[The] 7,300 and 25,250 points are the important barriers to
overcome for the FTSE 100 and the Dow Jones, respectively."
Check out:Why this investment pro thinks Wall Street's inflation
fears are overblown
(http://www.marketwatch.com/story/why-this-investment-pro-thinks-wall-streets-inflation-fears-are-overblown-2018-02-13)
Stocks in focus
Sky PLC (SKY.LN) shares jumped 3.1% after the broadcaster
extended its rights to show Premier League soccer matches through
2022
(http://www.marketwatch.com/story/sky-extends-premier-league-rights-to-2022-2018-02-14),
at a cost of 1.19 billion pounds ($1.65 billion) a year.
Coca-Cola HBC AG shares climbed 3.6%. The bottler said full-year
net profit rose 24%,
(http://www.marketwatch.com/story/coca-cola-hbc-net-profit-rises-24-for-full-year-2018-02-14)
after an increase in sales and operating margins.
Bank stocks were higher, with heavyweight HSBC Holdings PLC
(HSBA.LN) rising 2% and Barclays PLC (BCS) gaining 0.8%.
(END) Dow Jones Newswires
February 14, 2018 04:12 ET (09:12 GMT)
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