LONDON MARKETS: FTSE 100 Pulls Back From Run Of 2016 Highs
August 10 2016 - 4:26AM
Dow Jones News
By Carla Mozee, MarketWatch
ITV's bid for "Peppa Pig" producer rejected
Stocks in the U.K. fell Wednesday, taking a breather after
hitting their best level this year, with investors waiting for cues
in lackluster trading.
The FTSE 100 shed 0.3% at 6,830.52, with all sectors moving
lower. The index on Tuesday
(http://www.marketwatch.com/story/ftse-100-notches-modest-gain-as-retailers-rise-2016-08-09)
rose 0.6% at 6,851.30, its best close since June 2015, to mark a
fourth straight win, according to FactSet data.
Smith & Nephew PLC shares (SN.LN) were at the bottom of the
benchmark, losing 1.8% after the medical equipment maker's rating
was downgraded to equal weight from overweight at Barclays.
But shares of broadcaster ITV PLC (ITV.LN) were higher by 0.3%
after Entertainment One Ltd. (ETO.LN) , the Canadian film and
television producer behind the Peppa Pig cartoon franchise,
rejected ITV's $1.3 billion buyout offer.
(http://www.marketwatch.com/story/entertainment-one-rejects-itvs-takeover-bid-2016-08-10)
For the market overall, an "empty economic calendar leaves [the
FTSE] lacking any real direction, meaning the index has once again
become susceptible to the movements in the oil sector," said Connor
Campbell, financial analyst at Spreadex, in a note.
Energy sector: Oil major Royal Dutch Shell PLC (RDSB.LN)
(RDSB.LN) fell 0.9%, and BP PLC (BP.LN) (BP.LN) was off 0.5% as oil
prices traded mixed. On Tuesday, they pulled back from a two-week
high
(http://www.marketwatch.com/story/oil-price-gains-stymied-by-upward-revision-to-us-crude-outlook-2016-08-10),
as investors weighed concerns about a global supply glut against
the prospects for an industry agreement to curb output.
"[O]ne of the main pieces of data this Wednesday is the latest
crude oil inventories figure from the U.S., meaning there could
still be some more movement in the sector before the day is over,"
said Connor.
Read:Oil market déjà vu sets in as OPEC plans 'informal' meeting
(http://www.marketwatch.com/story/oil-market-deja-vu-sets-in-as-opec-plans-informal-meeting-2016-08-08)
The Energy Information Agency will release its weekly supply
data later Wednesday. The American Petroleum Institute late Tuesday
said there was a 2-million-barrel increase in crude supplies.
Movers: On the FTSE 250 midcap index, G4S PLC (GFS.LN) rallied
14% after the security services provider projected demand for its
services will grow
(http://www.marketwatch.com/story/g4s-profit-rises-97-expects-demand-to-grow-2016-08-10)
by 4% or 6% a year over the medium term.
Meanwhile, William Hill PLC (WMH.LN) fell 1.1%. The bookmaker
rejected a proposal
(http://www.marketwatch.com/story/william-hill-rejects-418-bln-bid-from-rivals-2016-08-10)
valued at around GBP3.16 billion ($4.18 billion) from Rank Group
PLC (RNK.LN) and 888 Holdings PLC (888.LN) for a potential
combination of the three companies.
Sterling: The pound was buying $1.3044, up from $1.2978 late
Tuesday in New York.
Sterling fell below $1.30 on Tuesday, as Bank of England policy
maker Ian McCafferty, in an op-ed for the Times of London
newspaper, said the benchmark rate "can be cut further, closer to
zero, and quantitative easing can be stepped up."
(END) Dow Jones Newswires
August 10, 2016 04:11 ET (08:11 GMT)
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