LONDON MARKETS: FTSE 100 Set For First Loss In Four Days, But Lloyds Climbs After Earnings
27 April 2017 - 12:10PM
Dow Jones News
By Carla Mozee, MarketWatch
AstraZeneca profit falls; WPP flags weakness in U.S. market
U.K. stocks dropped Thursday, with drug maker AstraZeneca PLC
among those pushing the blue-chips market lower for the first time
in four sessions, but Lloyds Banking Group PLC gained the most in
two months following a well-received earnings report.
The FTSE 100 fell 0.5% to 7,249.01, with only the financial and
utility sectors advancing.
Investors were also keeping watch on the pound, which briefly
traded above $1.29 for the first time in a week, as the dollar
edged back.
A stronger pound can weigh on profit and sales made overseas by
multinational companies listed on the FTSE 100.
The dollar started pulling lower after U.S. President Donald
Trump's long-anticipated plan for tax cuts and reforms was
presented Wednesday. The tax proposal included cutting the
corporate tax rate to 15% from 35%. But many analysts said Thursday
the presentation lacked details.
"In summary, Trump knows how to spend and how much to spend, yet
isn't sure about where to get the funding. We doubt that future
revenues from aggressive import tax increases would be enough to
pay the expensive bill in the long-run," said Ipek Ozkardeskaya,
senior market analyst at London Capital Group, in an note.
The FTSE 100 on Wednesday rose 0.2%
(http://www.marketwatch.com/story/ftse-100-downshifts-after-wave-of-earnings-ahead-of-trump-tax-rollout-2017-04-26),
in anticipation of the Trump tax presentation. Equity markets
worldwide in recent months have hit record highs in part in
anticipation of lower U.S. corporate taxes and looser regulation on
the financial sector under the Trump administration.
After a peek above $1.29, the pound on Thursday traded at
$1.2889, up from $1.2850 late Wednesday in New York.
Corporates: AstraZeneca shares (AZN.LN) (AZN.LN) fell 1.1% after
the drug maker said first-quarter profit declined 17% to $537
million
(http://www.marketwatch.com/story/astrazeneca-profit-down-as-sales-for-key-drug-fall-2017-04-27)as
it battles declining sales of its blockbuster cholesterol pill
Crestor.
Lloyds Banking shares (LLOY.LN) (LLOY.LN) leapt 3.8%, its best
session since Feb. 22. The lender said first-quarter net profit
surged to GBP766 million
(http://www.marketwatch.com/story/lloyds-profit-up-as-uk-stays-resilient-to-brexit-2017-04-27)
from GBP405 million a year earlier, aided by a decline in bad
loans. The U.K. government, which bailed out Lloyds during the
financial crisis, is expected to sell its remaining shares in the
bank in the coming months.
At the bottom of the FTSE 100, WPP PLC shares (WPP.LN) fell 2.3%
after the world's largest advertising company said revenue growth
slowed in the first quarter as clients spent less in the U.S. and
emerging markets
(http://www.marketwatch.com/story/wpp-revenue-growth-lags-as-us-clients-spend-less-2017-04-27).
Mediclinic International PLC (MDC.LN) rallied 18% after the
international private health care group said holders of a Thiqa
medical insurance card won't have a 20% co-payment when they use
its facilities in Abu Dhabi.
(END) Dow Jones Newswires
April 27, 2017 05:55 ET (09:55 GMT)
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