FTSE close: Rangold, ASOS up; JD down

 

17.10 (close)

A dealer monitors her screens on the trading floor of IG Index in London

The London market regained its poise today as better-than-expected unemployment figures boosted investor confidence.

The FTSE 100 Index, which succumbed to profit-taking on Tuesday following fresh fears over the scale of Japan's nuclear crisis, closed 46 points higher at 6010.4 after the UK unemployment rate fell for the first time in five months.

The Office for National Statistics (ONS) said the number of people in work in the UK was at its highest for two years.

The jobs data followed a surprise drop in inflation to 4% yesterday, while Britain's trade deficit shrank by more than expected in February as exports hit a record high for the second month in a row.

The positive jobs outlook boosted the pound, which was up against the US dollar at 1.62 and up against the euro at 1.12.

Rising gold and oil prices gave mining and resources stocks a fillip, with Randgold Resources up 5p at 5205p, Xstrata ahead 3p at 1468.5p and Essar Energy adding 8.7p at 465p.

A 3% drop in global iron ore production at Rio Tinto had earlier threatened to dampen the mood, but with the decline partly due to Australia's recent flooding the stock held firm with a rise of 5.5p to 4408.5p.

Wall Street's Dow Jones Industrial Average was up 0.3% after the US Commerce Department said retail sales rose by 0.4% from the previous month. It was the ninth gain in a row.

The latest round of first quarter updates in the US also lifted sentiment after JP Morgan posted earnings ahead of market expectations.

Chief executive Jamie Dimon said the results reflected a strong quarter in investment banking, offset by the "extraordinarily" high losses the bank continues to suffer on mortgage-related issues.

Net income of $5.6bn (£3.4bn), compared with a figure of $3.3bn a year ago.

UK banks were encouraged by the earnings with Barclays up 4.7p at 308.85p, HSBC ahead 6.7p at 661.6p and Royal Bank of Scotland adding 0.3p at 44.16p.

Attention in London was also focused on the retail sector after updates from fashion chain JD Sports and online fashion firm ASOS.

JD shares came under pressure, falling 64p to 837.5p, after it revealed a 21% jump in full-year profits, but warned that margins were being squeezed by a rise in its costs, which it has struggled to pass on to cash-strapped consumers.

ASOS moved in the opposite direction as a better-than-expected fourth quarter sales performance drove shares 14% or 243p higher to 1964p.

Buoyed by further strong international growth, ASOS said it expected full-year profits to be towards the top end of market hopes.

The biggest Footsie risers were ARM Holdings up 38p at 598p, Reckitt Benckiser ahead 136p at 3366p, GKN up 6.9p at 203.5p and G4S ahead 7.3p at 268.6p.

The biggest Footsie fallers were Old Mutual down 6.2p at 138.6p, Lonmin off 39p at 1649p, Carnival down 40p at 2436p and IMI off 16p at 995p.

15.30: Shares in miners Rio Tinto and Fresnillo have risen following their first quarter production updates.

Global giant Rio said its operations were getting back on track after being knocked by extreme weather including cyclones in Australia in the first quarter.

And Mexico-based Fresnillo reported that it was taking measures to stabilise silver production after lower ore grades prompted a drop in output in the first three months of this year.

Rio's stock edged up 4.5p to 4,407.5p and Fresnillo's was 6p higher at 1,582p. We have more here.

Brent crude is hovering at around £120 a barrel following softening amid profit-taking over the past few days.

However, gold has moved higher again. It was fixed this afternoon at $1457.50 compared with $1450.50 at the previous close.

The Dow Jones is 35.8 points up at 12,299.3. Earnings from JPMorgan Chase beat expectations and US retail sales were up 0.4% in March. However, the retail figure received a mixed reception as it showed the weakest gain since last summer.

The FTSE 100 is up 52.3 points at 6,016.8 as the end of the session approaches.

14.50:

Over on Wall Street the Dow Jones has opened higher and is 47.68 points up at 12,311.26 in early trading.

Back in London, the FTSE 100 is 72.60 points up at 6037.07.

13.15:

At lunchtime, the FTSE 100 continues to climb and is now 74.3 points higher at 6038.77.

Better unemployment data has helped sentiment, and there has been positive noises from the US on bank earnings, after JP Morgan posted earnings ahead of market expectations.

Chief executive Jamie Dimon said the results reflected a strong quarter in investment banking, offset by the 'extraordinarily' high losses the bank continues to suffer on mortgage-related issues.

Net income of $5.6bn, compared with a figure of $3.3bn in the first quarter of 2010. UK banks took the figures in their stride with HSBC up 10.55p at 665.45p and Barclays ahead 3.95p at 308.1p.

11.50:

JD Sports reports today, and has said underlying profits increased to £81.6m in the year to January 29, on sales up 15% to £883.7m.

However, it warned that multiple economic pressures plus the VAT rise to 20% will contibute to lower sales in the future.

'The same level of gross takings will produce a contribution of approximately £16m less than the previous year,' the firm cautioned.

Perhaps it was that gloomy forecast that pushed shares in JD 26.5p lower to 875p today. Here's more detail and reaction to the JD numbers.

Overall, the FTSE 100 is 55.05 points higher at 6019.52.

11.00:

The economy news today comes in the form of employment data - and its rare good news!

Unemployment fell to 2.48m in the three months to February, although the official figures today revealed workers felt a squeeze on pay rises. Here's the full story.

The employment numbers are watched by the Bank of England's Monetary Policy Committee and taken into consideration when it decides on interest rates.

From today's data, falling unemployment would suggest the economy is recovering and could cope with interest rates rises.

On the other hand, a squeeze on wage rises may indicate lower inflation in the future. That suggests the need to raise rates is not as pressing.

Equities seemed to like the news, and the FTSE 100 rose after the Office for National Statistics released the data. The Footsie is now 42.17 points better off at 6006.64.

09.20:

The FTSE 100 regained ground today after fears over Japan sparked profit-taking yesterday, while miners came under scrutiny after numbers from Rio Tinto were released.

The top flight, which was hit yesterday as investors withdrew due to fresh fears over the scale of Japan's nuclear crisis, climbed 27.6 points to 5992.1 after Japan's Nikkei 225 had earlier finished almost 1% higher.

A 3% drop in global iron ore production at Rio Tinto had threatened to dampen the mood but with the decline partly due to Australia's recent flooding the stock held firm at less than 1% lower - off 22.5p at 4380.5p.

That was in contrast to sector-mate Fresnillo. Its production data revealed record gold production for the first quarter, although silver production sliped. Fresnillo shares rose 33p to 1,609p, or 2%, making it one of the highest risers in early trading.

Attention in London was also focused on the retail sector after updates from fashion chain JD Sports and online firm ASOS.

JD shares came under pressure, falling 25.25p to 876.25p, after it revealed a 21% jump in full-year profits but warned that margins were being squeezed by a rise in its costs, which it has struggled to pass on to cash-strapped consumers.

ASOS moved in the opposite direction as a better-than-expected fourth quarter sales performance drove shares 111.5p higher to 1818.5p.

Buoyed by further strong international growth, ASOS said it expected full-year profits to be towards the top of market hopes.

In currency, the pound was $1.6290 compared to $1.6261 at the previous close. Against the euro, the pound was €1.1230 compared to €1.1247 at the previous close.