LONDON MARKETS: FTSE 100 Trudges Higher But Home Builders Keep A Lid On Bigger Gains
March 16 2018 - 6:26AM
Dow Jones News
By Carla Mozee and Sara Sjolin, MarketWatch
U.K. blue-chip stocks moved higher Friday, as investors snapped
up shares that had been beaten down earlier this week in part by
worries about a potential global trade war.
Home builders were hit after Berkeley Group Holdings PLC, one of
Britain's biggest developers, offered a downbeat view of the
market.
How markets are moving
The FTSE 100 index was up 0.2% at 7,153.51, after opening
slightly in the red. The basic materials group led advancers while
the tech and industrial groups fell. On Thursday, the index rose
0.1%
(http://www.marketwatch.com/story/ftse-100-edges-up-after-string-of-losses-but-unilever-falls-after-london-hq-news-2018-03-15),
it's first rise after three losing sessions.
The pound bought $1.3973, up from $1.3936 late Thursday in New
York.
What's driving markets
Investors appeared in the mood to end the week on an upbeat
note, shrugging off concerns over more instability in the U.S.
administration. Media reports said President Donald Trump was
planning to sack his national security adviser H.R. McMaster, which
would be the second high-profile firing from the White House this
week. Secretary of State Rex Tillerson was fired on Tuesday and
replaced with CIA Director Mike Pompeo.
The FTSE, however, was still on track to end the week with a 1%
loss after being pulled sharply lower on Tuesday on concerns that
U.S. tariffs on steel and aluminum would spur retaliatory measures
from other countries. The White House said it will seek to trim the
U.S.'s trade deficit with China by $100 billion, using tariffs. The
European Union, meanwhile, was working to get the bloc exempt from
the tariffs.
Stock movers
Berkeley Group Holdings PLC (BKG.LN) dropped 5.3% as the home
builder said while trading conditions in London and the southeast
of the U.K. remain stable it doesn't plan to step up building.
(http://www.marketwatch.com/story/berkeley-projects-no-increase-in-production-2018-03-16)
"The operating environment and its impact on transaction
volumes, whilst sufficient for the business plan and five-year
profit guidance period that ends at 30 April 2021, do not support
the step-up in Berkeley's production levels that these markets so
badly need," said Berkeley.
Shares of other home builders fell. Taylor Wimpey PLC (TW.LN)
dropped 1.4% and Persimmon PLC (PSN.LN) gave up 1.2%.
Among advancers, tobacco producer Imperial Brands PLC (IMBBY)
was up 0.9%, airline easyJet PLC (EZJ.LN) picked up 1.3% and lender
Barclays PLC (BCS) rose 0.9%.
Off the FTSE 100, NEX Group PLC (NXG.LN) rallied 34% to GBP8.99
after confirming that it's received a preliminary takeover approach
from CME Group Inc
(http://www.marketwatch.com/story/nex-confirms-takeover-approach-by-cme-2018-03-16).
(CME) .
(END) Dow Jones Newswires
March 16, 2018 06:11 ET (10:11 GMT)
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