LONDON (ShareCast) - UK stocks pulled back from their highest levels in a month and a half on Friday, though the downside was being limited by some rare positive economic data from the Eurozone.
Figures released on Friday morning showed that both Germany and France returned to growth in the third quarter, reassuring the market that the Eurozone's two largest economies are not in recession.

The FTSE 100 was down 0.2% at 6,623 in early deals with heavyweight oil and mining stocks providing a drag. The index settled at 6,635.45 on Thursday, its highest close since 29 September, when it finished at 6,646.60.

German gross domestic product (GDP) expanded by 0.1% over the third quarter after a revised 0.1% contraction in the second, as anticipated by the market. Growth on an annualised basis came in better than expected at 1.2%.

French GDP beat forecasts by growing 0.3% quarter-on-quarter after a 0.1% decline in the preceding three months. Annual growth was 0.4% after a flat reading in the second quarter.

Analyst Angus Campbell from FxPro said that the data "shows tentative signs that possibly the worst is over for the Eurozone".

The figures also mean there is now upside risk to GDP estimates for the wider Eurozone due out later on Friday morning. Consensus expects quarter-on-quarter growth to have remained steady at 0.1%, though annual growth is expected to have slowed to 0.7% from 0.8%.

Economic data from the States will also be in focus during the session, with US retail sales and the University of Michigan US consumer-confidence index being closely watched.

Resources stocks fall, Aggreko impresses with Q3 update

A host of resources stocks were lower as commodity prices weakened with Brent crude in particular extending four-year lows. Tullow Oil was joined in the red by mining firms Fresnillo, Randgold and Anglo American as metals prices weakened.

Glencore was also out of favour on reports that it will stop coal output in Australia for three weeks.

Temporary power and temperature control group Aggreko was higher after keeping its full-year profit guidance unchanged, despite organic growth slowing the third quarter. The company said it continued to expect 2014 underlying trading profits to be "similar to 2013", when it earned £357m.

Engineering group IMI declined after announcing that organic growth eased to just 1% in the third quarter. The company also revealed it would be spending £120m on the acquisition of German power valve specialist Bopp & Reuther.

Tesco was trading higher after analysts at HSBC upgraded their rating on the supermarket stock to 'overweight'.

Rivals J Sainsbury and Wm Morrison were also putting in decent gains, along with the wider retail sector including Next, Card Factory, N Brown and Home Retail.

Technology group Premier Farnell was a heavy faller after warning that full-year operating margins would be below last year due to a "softer trading environment".



Market Movers

techMARK 2,859.21 +0.14%
FTSE 100 6,622.87 -0.19%
FTSE 250 15,632.19 0.00%

FTSE 100 - Risers
Aggreko (AGK) 1,605.00p +4.09%
Tesco (TSCO) 195.05p +2.04%
Sainsbury (J) (SBRY) 269.20p +1.55%
InterContinental Hotels Group (IHG) 2,583.00p +1.37%
Aberdeen Asset Management (ADN) 437.30p +1.16%
TUI Travel (TT.) 416.40p +0.97%
Compass Group (CPG) 1,051.00p +0.96%
Morrison (Wm) Supermarkets (MRW) 178.40p +0.91%
Reed Elsevier (REL) 1,050.00p +0.86%
ITV (ITV) 206.80p +0.83%

FTSE 100 - Fallers
Fresnillo (FRES) 707.00p -2.62%
Intertek Group (ITRK) 2,674.00p -2.34%
Randgold Resources Ltd. (RRS) 4,090.00p -2.34%
Tullow Oil (TLW) 454.30p -2.09%
BHP Billiton (BLT) 1,631.00p -1.92%
Anglo American (AAL) 1,335.50p -1.87%
Rio Tinto (RIO) 2,997.00p -1.56%
Weir Group (WEIR) 2,126.00p -1.35%
SABMiller (SAB) 3,517.00p -1.07%
Antofagasta (ANTO) 710.00p -1.05%

FTSE 250 - Risers
Card Factory (CARD) 235.60p +2.26%
Entertainment One Limited (ETO) 303.50p +1.85%
Thomas Cook Group (TCG) 132.10p +1.85%
Inmarsat (ISAT) 735.00p +1.80%
Saga (SAGA) 159.10p +1.66%
Brown (N.) Group (BWNG) 342.90p +1.48%
Diploma (DPLM) 705.50p +1.44%
Computacenter (CCC) 618.50p +1.39%
Dairy Crest Group (DCG) 488.60p +1.37%
Dignity (DTY) 1,561.00p +1.36%

FTSE 250 - Fallers
Premier Farnell (PFL) 164.20p -8.73%
Restaurant Group (RTN) 649.00p -5.19%
EnQuest (ENQ) 65.30p -3.62%
Electrocomponents (ECM) 200.10p -3.10%
Polymetal International (POLY) 520.50p -2.35%
Rotork (ROR) 2,445.00p -2.20%
Hochschild Mining (HOC) 90.35p -2.17%
African Barrick Gold (ABG) 215.50p -2.05%
Lonmin (LMI) 177.50p -1.99%
Vesuvius (VSVS) 419.80p -1.82%

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