FTSE close: Greene King, Premier Foods; US jobs

 

18.00

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

Friday feeling: Shares have recovered losses this week.

The price of gold, viewed as a safehaven, rose once again. It was up $18 an ounce to $1,407.3 due to the gloom surrounding US job figures,

The the Dow Jones Industrial Average, which had been buoyed this week by positive signs on retail spending and house sales, was down 16 points at 11,346.40.

17.00 (close)

A two-day rally for the FTSE 100 was brought to an end today by disappointing employment figures from the United States.

London's top flight index climbed more than 200 points in its two previous sessions but finished down 22.2 points at 5745.3 on Friday after American employment figures grew by less than expected.

The US Labor department said employers only added 39,000 jobs last month, sharply down from the 172,000 created in October. The unemployment rate fell 0.2% to 9.8% in November, a seven-month high and worse than expected.

Elsewhere in the US, orders for manufactured goods declined for the first time in four months, dropping 0.9% to $420bn (£270m) in October, the Commerce Department said.

The dollar fell sharply on fears over the US economic recovery, to 1.57 against the pound and 1.34 against the euro.

The euro was resurgent on talk that the European Central Bank has been buying Spanish and Portuguese bonds, alleviating fears that the country will be able to service their debts. The pound was down to 1.18 euros.

Banking stocks wavered following the US economic figures, with Lloyds and Barclays down 0.2p at 66.4p and 7p at 268p respectively, while Royal Bank of Scotland declined 0.1p to 41.5p.

Rising metal prices ensured mining stocks gained, with Fresnillo at the top of the risers board after lifting 60p to 1568p, and Kazakhmys not far behind after adding 24p to 1511p.

Fashion label Burberry lost earlier gains seen after Seymour Pierce introduced a buy rating on the stock and praised its geographical and product mix. Shares initially lifted but were later down 20p to 1079p.

In corporate results, shares in pubs group Greene King rose after it reported a better-than-expected 17% hike in pre-tax profits to £73.1m and a 4.2% improvement in revenues to £484.1m.

The company, which climbed 6p to 466p, also announced plans to fully integrate its Scottish business Belhaven in a bid to save the company £1m.

Premier Foods shares fell more than 2% after the firm said it was in advanced talks with two parties over the sale of its meat-free food range Quorn.

The statement follows speculation that named Swiss consumer giant Nestle as a frontrunner in the auction, which could value Quorn at more than £200m. Shares were down 0.4p at 18.1p.

Housebuilder Berkeley provided some rare cheer to the sector when it posted an 18% rise in pre-tax profits and 20% surge in sales reservations.

The firm, which focuses on London and the south east, lifted its profits guidance for the full year after strong demand in London and stable prices boosted sales. Shares were up 38p at 878p.

The upbeat performance cheered the industry, with Barratt Developments up 4.5p at 78p, Taylor Wimpey ahead 1p at 26.4p and Bellway up 9.5p at 555p.

The biggest FTSE 100 risers were Fresnillo up 60p at 1568p, Johnson Matthey ahead 59p at 1926, Schroders up 33p at 1745p, and Anglo American ahead 51 at 3050.5p. The biggest footsie fallers were Man Group down 9.6p at 279.1p, Sage Group off 9.2p at 279.8p, Barclays down 7p at 268p, and Old Mutual off 3.1p at 120.1p.

15.40: The Footsie has recovered from its initial disappointment over the US jobs figures and is trading flat again. It's down just 1.7 points at 5,765.86.

The Dow Jones also appears to have taken the weaker than expected jobs data in its stride. It is 7.15 points lower at 11,355.26.

14.10:

Oh dear. The always-watched non-farm payroll figures from the US have come in under target.

The US Department of Labor said that 39,000 jobs were added in November, far lower than the 155,000 predicted. Separate figures showed that the unemployment rate unexpectedly rose to 9.8% in November from 9.6% in October.

The disappointment was instant and London shares fell sharply after the data was released. The Footise shed nearly 60 points top-to-bottom in the minutes after the numbers hit at half past one. From a day high of 5784, the FTSE 100 dipped to 5720.

The blue chip index is now 34.47 points lower on the day at 5733.09.

12.10:

Lunchtime update - the Footsie remains flat. It is 0.69 points up at 5,768.25.

Shares in housebuilder Berkeley Group Holdings have surged 4%, up 35p at 875p, after it reported improved profits and gave a fairly upbeat forecast for the housing market.

11.00:

We have an update on Greene King, which is trading 2p higher at 462p after unveiling improved profits and plans to cut costs by fully integrating its Scottish business Belhaven.

The Footsie is still sluggish - up just 2.37 points at 5,769.93.

10.45:

The FTSE 100 is moving within a narrow range today and is currently 8.3 points higher at 5775.88.

On Wall Street later today, the futures markets expect the Dow Jones to open level to slightly lower - but sentiment will be shaped by those non-farm pay roll numbers.

Some 140,000 are expected to have been added in November.

It is perhaps worth reflecting on a rollercoaster week for the Footsie. The blue chip index dipped to as low as 5519 on Tuesday. It is now at a week-high of 5776.

9.50:

Premier Foods has revealed that it is juggling two buyers for its veggie brand Quorn. But its shares are flat, down 0.04p to 18.52p, after edging slightly higher earlier.

The Footsie is still treading water, up 2.08 points at 5,769.64.

09.45:

The FTSE 100 struggled to maintain yesterday's rally in thin trading and ahead of US jobs data that will set the agenda for markets.

As expected, the FTSE 100 Index paused for breath today in a lacklustre trading session, with the top flight 3.4 points lower at 5764.2.

The City has been encouraged by moves from the European Central Bank to delay the withdrawal of emergency liquidity measures.

One of the beneficiaries of the recent improved sentiment has been fashion label Burberry, which extended its recent rally after Seymour Pierce introduced a buy rating on the stock and praised its geographical and product mix. Shares responded with a rise of 15p to 1114p.

In corporate results, shares in pubs group Greene King were steady after it reported a better-than-expected 17% rise in pre-tax profits to £73.1m and a 4.2% improvement in revenues to £484.1m.

The company, which climbed 1.6p to 461.6p, also announced plans to fully integrate its Scottish business Belhaven in a bid to save the company £1m.

In currency, signs of progress in the eurozone debt crisis and improved data from the US economy helped the euro pull further away from an 11-week low against the dollar.

The pound at 9am was at $1.5646 compared to $1.5607 at the previous close. The euro at 9am was €1.1820 compared to €1.1794 at the previous close.

Dollar weakness also resulted in oil touching $90 a barrel for the first time in more than two years today.

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