London close: UK services data gives FTSE and sterling a nudge higher
By Andrew Schonberg
Date: Wednesday 05 Apr 2017
(ShareCast News) - Stocks in London manoeuvred their way to a positive close after UK services industry output in March came in much stronger than expected.
This conclusion was despite gains in sterling inspired by the data, and was a pendulum swing from its softness after manufacturing and construction numbers disappointed earlier this week.
Markit/CIPS' services purchasing-managers' index (PMI) picked up to 55.0 in March, from 53.3 in February. The predictions were for a slight rise to 53.5.
The FTSE 100 closed up 0.13% to 7,331.68, and the FTSE 250 closed up 0.26% to 19,069.33. Trade in the US was firm after ADP data showed private-sector employment in the US unexpectedly rose in March.
The Euro Stoxx 50, Dax and Cac 40 were lower -- having flirted with gains -- after the Eurozone's final services PMI for March returned at 56.0, below the 56.5 anticipated.
"It's been another of trudging through treacle for investors with another mixed session for European equity markets," said Michael Hewson, chief market analyst at CMC Markets UK.
This was ahead of the latest US Federal Open Market Committee meeting minutes and the start of the meetings between President Donald Trump and China's President, Xi Jinping. US non-farm jobs data on Friday was also keenly anticipated.
Chris Beauchamp, chief market analyst at IG, observed that UK mining stocks were lifted by a general rally in commodity prices, as Chinese traders played catch-up following their holiday.
"Recent manufacturing data has been better, and there are suggestions of further stimulus to get the Chinese economy moving once more," he said.
"Miners have been at the heart of the FTSE's gains over the past two days, but even so the index has shown little inclination towards a sustained rally."
So it was that miners such as BHP Billiton, Antofagasta, Glencore and Anglo American made gains, although they were spread out across the top 50 blue chips rising. These also included banks, commercial property and utilities.
Irish services group DCC has agreed to buy Royal Dutch Shell's liquefied petroleum gas business in Hong Kong and Macau for about £120m, subject to regulatory consent. It also agreed to dispose of its Environmental division at an enterprise value of £219m.
Medical technology company ConvaTec announced the US launch of 'Foam Lite' ConvaTec dressing on Wednesday, which it described as a light, flexible silicone foam dressing for managing low to non-exuding chronic and acute wounds.
Insurance giant Aviva completed the sale of its entire 50% shareholding in life insurance joint venture Antarius to Sogecap for a consideration of £425m cash.
Mining company Rio Tinto said the Australian Commissioner of Taxation had issued it amended tax assessments for 2010 to 2013, requiring the company to pay additional tax of A$379m plus interest of A$68m, a total of A$447m.
Tobacco specialist British American Tobacco said it had obtained unconditional antitrust approval from the Japanese authorities in relation to its proposed acquisition of Reynolds American Inc..
Market Movers
FTSE 100 (UKX) 7,331.68 0.13%
FTSE 250 (MCX) 19,069.33 0.26%
techMARK (TASX) 3,437.22 -0.11%
FTSE 100 - Risers
Whitbread (WTB) 4,015.00p 2.95%
Micro Focus International (MCRO) 2,384.00p 2.63%
Provident Financial (PFG) 3,144.00p 2.34%
British Land Company (BLND) 622.00p 2.13%
DCC (DCC) 7,145.00p 1.78%
BHP Billiton (BLT) 1,277.50p 1.75%
ITV (ITV) 217.20p 1.73%
Land Securities Group (LAND) 1,071.00p 1.61%
Rolls-Royce Holdings (RR.) 777.50p 1.57%
Antofagasta (ANTO) 853.00p 1.55%
FTSE 100 - Fallers
Old Mutual (OML) 190.00p -4.38%
Croda International (CRDA) 3,492.00p -3.60%
AstraZeneca (AZN) 4,857.50p -1.97%
Mediclinic International (MDC) 679.00p -1.74%
Johnson Matthey (JMAT) 3,006.00p -1.51%
Royal Mail (RMG) 411.00p -1.49%
Fresnillo (FRES) 1,574.00p -1.32%
Shire Plc (SHP) 4,693.00p -1.24%
Mondi (MNDI) 1,940.00p -1.17%
St James's Place (STJ) 1,053.00p -1.13%
FTSE 250 - Risers
CLS Holdings (CLI) 1,844.00p 6.23%
Hunting (HTG) 590.50p 5.92%
Bovis Homes Group (BVS) 891.00p 5.38%
Vedanta Resources (VED) 848.00p 5.08%
Kaz Minerals (KAZ) 486.10p 4.89%
Metro Bank (MTRO) 3,501.00p 4.79%
P2P Global Investments (P2P) 818.50p 4.46%
Euromoney Institutional Investor (ERM) 1,080.00p 3.75%
Sophos Group (SOPH) 313.40p 3.36%
St. Modwen Properties (SMP) 334.00p 3.24%
FTSE 250 - Fallers
Allied Minds (ALM) 185.00p -29.12%
IP Group (IPO) 139.30p -7.75%
Petrofac Ltd. (PFC) 890.50p -3.52%
JRP Group (JRP) 126.00p -3.00%
Berkeley Group Holdings (The) (BKG) 3,087.00p -2.16%
Essentra (ESNT) 523.50p -2.15%
Investec (INVP) 536.50p -1.92%
Sports Direct International (SPD) 295.20p -1.57%
AO World (AO.) 136.50p -1.46%
Auto Trader Group (AUTO) 390.80p -1.44%
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