FTSE close: Tesco, Arm up; Rangold, TUI down

By This Is Money
Updated: 12:20 EDT, 26 April 2011

17.05 (close)

Ford's best first quarter earnings since 1998 helped spur on the London market today as investors looked across the Atlantic for direction.

The US car giant and technology firm 3M delivered first quarter figures that beat expectations in another round of strong US earnings.

The figures provided the focus on the FTSE 100 Index in an otherwise quiet day for UK corporate news after the long Easter break, with the Footsie finishing 51.1 points higher at 6069.4.

The London market had got off to a subdued start, with investors holding back ahead of economic updates on both sides of the Atlantic tomorrow.

In the UK, gross domestic product (GDP) figures tomorrow will reveal whether the economy rebounded in the first quarter of 2011, while most commentators expect the US Federal Reserve to resist pressure to increase interest rates.

The pound was weak amid nervousness over tomorrow's GDP estimate. Sterling eased back to 1.65 dollars and 1.13 euros.

Banking shares were in the spotlight after Swiss giant UBS reported a strong quarter for its wealth management arm and as investors prepared for the release of first quarter results from Barclays on Wednesday.

Royal Bank of Scotland was up 0.04p at 41.8p, Lloyds Banking Group was ahead 0.5p at 60.4p and Barclays advanced 3p to 301.9p.

British Airways parent International Consolidated Airlines Group topped the risers board on the back of softer oil prices and an upbeat note on the sector from broker UBS.

The company, formed when BA merged with Spanish carrier Iberia earlier this year, saw shares lift 5% or 9.9p to 229.6p.

Luxury fashion house Burberry was not far behind, still benefiting from the positive set of results it released last week.

The 155-year-old maker of raincoats and handbags reported a 32% surge in revenues to £390m in the three months to March, which it said would result in full-year profits being at the top end of expectations. Shares were up 20p at 1291p.

The heavily-weighted mining sector dragged the market down as commodity prices softened.

Randgold Resources led the declines with a fall of 110p to 5195p.

Elsewhere, tool hire firm Speedy Hire jumped 7% or 2p to 29p after it sold its temporary buildings business in a deal worth £35m.

Rival Elliott, the UK arm of North American modular building supplier Algeco Scotsman, is buying the loss-making division.

M&S food supplier Uniq made headway after it reported a return to annual underlying profits following a surge in sandwich sales.

The group, which also makes salads and desserts for companies including Costa Coffee and The Co-operative Group, made profits of £4.1m in 2010, compared to losses of £1.9m the previous year. Shares were up 3.4p at 78p.

The biggest Footsie risers were International Consolidated Airlines Group up 9.9p to 229.6p, Arm Holdings ahead 20.5p to 625.5p, Essar Energy up 13.2p to 453.2p and Tesco up 11.4p to 406.7p.

The biggest Footsie fallers were Randgold Resources down 110p to 5195p, TUI Travel off 2.8p to 236.1p, Cairn Energy down 5.2p to 449.8p and Anglo American down 30p to 3132p.

15.55: We have more on annual results from Uniq, which is up 3.4p at 78p after it slashed annual losses and hailed a solution to its pension black hole.

The FTSE 100 is 34.2 points higher at 6,052.6 as the end of the session approaches.

Across the Atlantic, the Dow Jones is up 73.5 points at 12,553.3 as US investors digest better than expected consumer confidence data for April.

Results from UPS and Ford beat analysts' expectations but figures from Coca-Cola failed to meet hopes.

Looking ahead to the US Fed's likely comments on monetary policy tomorrow, Julian Jessop of research firm Capital Economics said chairman Ben Bernanke was likely to remain dovish.

'The overall message is likely to be that US monetary policy will have to remain exceptionally loose, maintaining the downward pressure on Treasury yields,' he said.

'This would probably keep the dollar weak too, at least in the near-term, although we continue to expect the US currency to rebound against the euro, sterling and yen in the second half of the year.'

14.20:

The FTSE 100 is ahead 34.2 points at 6,052.5.

Joshua Raymond, market strategist at spreadbetter City Index, commented: 'The amount of trading activity seen has been particularly quiet, as one might expect from the short week ahead of us, but there are also a few factors to consider that is also keeping trading activity low such as tomorrow's [US] Fed decision and Barclays' earnings.'

Brent crude was above $123 a barrel earlier but has dropped back under $122.

12.20:

Lunchtime update - The FTSE 100 is up 21.6 points at 6,039.86, as gains for the banking sector continue to offset a weaker session for miners.

Traders are holding back ahead of tomorrow's crucial gross domestic product figures, which will reveal whether the economy rebounded in the first quarter of 2011 from a shock decline.

Today, British Airways parent International Consolidated Airlines Group is topping the risers boards on the back of softer oil prices.

The company, formed when BA merged with Spanish carrier Iberia earlier this year, saw shares lift more than 3% or 7.3p to 227p.

Luxury fashion house Burberry was not far behind, still benefiting from the positive set of results it released last week.

The 155-year-old maker of raincoats and handbags reported a 32% surge in revenues to £390m in the three months to March, which it said would result in full-year profits being at the top end of expectations. Shares were up 31p at 1302p.

Away from the top flight, M&S food supplier Uniq made headway after it reported a return to underlying profits following a surge in sandwich sales.

The group, which also makes salads and desserts for companies including Costa Coffee and The Co-operative Group, made profits of £4.1m in 2010, compared to losses of £1.9m the previous year. Shares were up 0.6p at 75.2p.

Futures trading points to a higher open on the Dow Jones later. UPS, Amazon and Ford are among the US firms reporting today.

10.00:

Trading is muted in the FTSE 100 today as much of the nation continues to enjoy the double bank holiday break.

After a downbeat start, the blue chip index moved up 23 points to 6,041.3.

With little in the way of UK corporate news at the start of the shortened trading week, investors are looking to the US for direction given this week's Federal Reserve meeting.

Market watchers will look for hints on when the US central bank plans to end its ultra-loose monetary policy.

Back in London, a recent easing in commodity prices is prompting falls among miners.

Gold miner Randgold Resources and Antofagasta led declines, down 102.5p to 5202.5p and 19p to 1372p respectively.

Software developer Autonomy Corporation continued to make gains after surging last week following upbeat news of a recovery in demand for its products. It rose another 27p to 1647p today.

Banks were also higher in a buoyant session for the sector, with Royal Bank of Scotland the biggest gainer - ahead 0.7p to 42.5p.

Elsewhere, tool hire firm Speedy Hire rose 3% or 0.9p to 27.9p on news it has sold its temporary accommodation business in a deal worth £35m.

Rival Elliott, the UK arm of North American modular building supplier Algeco Scotsman, is buying the loss-making division.

In currency, the pound is at $1.6511 compared to $1.6496 at the previous close. Against the euro, the pound is €1.1310 compared to €1.1317 at the previous close.