FTSE close: Tesco down, Schroders up

 

17.45: The FTSE 100 closed 29.7 points higher at 5,803.1.

Dealers monitor their screens on the trading floor of IG Index in London

Watching brief: Traders will watch inflation data today.

The pound dipped a touch against the euro to 1.13 on market talk that a solution to Greece's debt problem might be found after a number of politicians warned about the dangers of a default. Sterling also rose against the US dollar.

Glencore shares closed down more than 4% or 23.4p on 500p - far below its float price of 530p.

Tesco shares closed 0.1p higher on 407.3p.

Avis Europe shares closed 58% higher - up 114.1p to 310.7p.

BT Group saw its shares gain 5.1p to 200.3p.

Ted Baker shares added 8.3% or 62.3p to 813.3p.

16.05: The Footsie is up 44.1 at 5,817.6 as the end of the session aprroaches.

The Dow has put on more than 1% following weeks of dismal trading. It's ahead 129.5 points at 12,082.5.

15.15:

The Dow Jones has rallied on the better than anticipated US retail data.

It's trading up 116.2 points at 12,069.1.

The FTSE 100 is 39.5 points higher at 5,813.

We have more on Carphone Warehouse, which has shed 4.5p to 394p

The company said it is still 'evaluating the next steps' for the future of Best Buy UK as the operation's losses ballooned in the past year.

Elsewhere in the retail sector, fashion chain Ted Baker is forging ahead with expansion plans at home and abroad after posting a 9.4% rise in retail sales in the 19 weeks to June 11.

Its stock has gained 29p to trade at 780p. We have more here, including analyst views on whether it is still worth chasing the shares.

13.40:

Futures trading points to a higher open on the Dow Jones later.

US investors are digesting May retail sales figures which show the first fall after 10 consecutive months of gains - but the data was nevertheless better than analysts had forecast.

Meanwhile, the monthly US producer price index rose by more than predicted.

Back in London, the FTSE 100 is up 35 points at 5,808.4.

Brent crude is trading a little below $119. Gold was fixed this morning at $1,519 an ounce compared with $1,526.25 at the previous close.

12.10:

At midday, the FTSE 100 is hanging onto gains, 17.76 points higher at 5791.24.

Commodities powerhouse Glencore has sunk to the bottom of the index after it used its maiden results to dismiss reports of major takeover plans.

The group's chief executive Ivan Glasenberg told reporters the company was not 'actively considering' a bid for mining group ENRC, sending shares down more than 3% or 16.9p to 506.7p - far below its opening price of 530p.

Glencore's fall came despite the company, which was fast-tracked to the top-tier index last month, reporting a 47% increase in first quarter net profit of $1.3bn.

The banking sector has done well, with Royal Bank of Scotland up 0.9p at 41.5p, Barclays ahead 4.9p at 265.2p and Lloyds Banking Group adding 0.8p to 48.4p.

Communications giant BT saw shares climb nearly 2% after its Openreach division revealed its fibre-optic lines will reach 5m premises by the end of June, as part of its £2.5bn programme to cover around two-thirds of the country's homes and businesses by 2015.

The company, which introduced the super-fast broadband services last year, saw shares increase 3.5p at 198.8p.

10.40:

We have more on the inflation figures, which remained stuck at the high level of 4.5% in May.

That is still well above the Bank of England's target of 2%, and will do little to calm speculation over the monetary policy committee's commitment to its inflation-controlling remit.

On the corporate front, Tesco said high petrol prices were altering normal shopping habits as it revealed UK sales had dipped for the second quarter in a row.

The supermarket giant reported that like-for-like sales excluding fuel and VAT dropped 0.1% in the 13 weeks to May 28.

Its stock is down 2.65p to 404.55p. Read more here about the Tesco sales update, and the reaction in the City.

The FTSE 100 is up 25.3 points at 5,798.8. Will Hedden, sales trader at spreadbetter IG Index, said the early share gains in London this morning were looking unconvincing.

'The FTSE pushed out to 5820 briefly, but with no surprises in the UK inflation data this morning and traders taking earnings news as a trigger to sell off holdings in the likes of Glencore and Tesco (the latter falling short of expectations), markets seem once again to be lacking any real momentum,' he commented.

09.35:

The FTSE 100 moved higher today as US-led optimism outweighed disappointing sales at Tesco, while traders waited for latest inflation data in the UK.

The Footsie was 37.09 points higher at 5810.55 by 9.20am.

Top riser among the blue chips is Schroders, 53p up at 1,579p, some 3.5%.

In economy news, UK consumer price index inflation remained unchanged in May at 4.5%. The retail price index measure if inflation was also unchanged from a month before, at 5.2%

Check back later for more details on ithe inflation figures.

A round of deal-making in the United States continued to give markets a lift today, despite a three-year high for China's inflation rate.

The Nikkei closed 1% higher in Tokyo, while markets in Paris and Frankfurt enjoyed similar gains and the FTSE 100 Index cheered 26.5 points to 5800.5.

Spirits were lifted by a flurry of corporate deals, including the takeover of Timberland in a £1.23bn deal with rival outdoor clothing group VF Corporation.

The latest deals, including a £636m move by Avis Budget to reunite with its Avis Europe business, meant investors overlooked a rise of 5.5% in Chinese consumer prices and another downgrade of Greece's credit rating.

In London, Tesco shares were under pressure after a first quarter trading update showing a 0.1% drop in like-for-like sales came in slightly below market expectations. While the figures represented an improved trend on the previous quarter, shares were 2.95p lower at 404.25p.

Avis Europe shares jumped 58% - up 113.75p to 310.35p after Avis Budget announced the acquisition of its European counterpart in a deal that already has the support of major shareholder, Belgium's D'Ieteren.