LONDON MARKETS: FTSE 100 Struggles For 3rd Day As Banks Fall, But On Course For Weekly Advance
15 Dezember 2017 - 10:25AM
Dow Jones News
By Carla Mozee, MarketWatch
U.K. stocks edged lower Friday, with bank shares keying off
losses on Wall Street where worries about progress for tax cuts and
other reforms ramped up, but the blue-chips market remained on
course for a weekly advance.
What markets are doing: The FTSE 100 index shed 0.1% to
7,439.51, led by the financial and health care groups. But the
basic materials sector topped advancers. On Thursday, the benchmark
fell 0.7%
(http://www.marketwatch.com/story/ftse-100-drops-after-may-loses-key-brexit-vote-boe-decision-ahead-2017-12-14),
the largest percentage drop since Nov. 30, according to FactSet
data.
But for the week, the FTSE was on course to rise 0.7%. That
would come after last week's 1.3% advance. The index has risen 4.2%
year-to-date.
The pound traded at $1.3436, not far off from $1.3430 late
Thursday. Against the euro, the pound traded hands at EUR1.1395
compared with $1.1403.
The 10-year gilt yield fell 3 basis points to 1.14%, according
to Tradeweb. Yields fall when prices rise.
What's moving markets: Worries surrounding Republican-led
efforts in Washington to cut taxes cropped up again, sending
U.S.-listed bank shares lower Thursday, and London-listed shares
followed suit Friday. Florida Sen. Marco Rubio told Senate leaders
he'll vote against the tax bill unless it includes a larger
expansion of the child tax credit. Meanwhile, Several Republican
senators have expressed doubts about the tax overhaul ahead of an
expected vote on the final bill next week, according to The Wall
Street Journal.
(https://www.wsj.com/articles/house-senate-republicans-reach-deal-on-final-tax-bill-1513185360)
Expectations for tax cuts and an overhaul in U.S. tax polices
have at times boosted bank stocks worldwide over the last year.
"Investors have been watching the twists and turns of this bill
with great focus, because of its expected impact on big firms,"
said Jasper Lawler, senior market analyst at London Capital
Group.
"Any signs of the Republicans squeezing the deal through, could
see the markets quickly recoup yesterday's losses."
Meanwhile, EU leaders on Friday continued to meet for a summit
where Brexit features high on the agenda. The group is expected to
give the green light for divorce talks to move onto the second
phase
(http://www.marketwatch.com/story/breakthrough-on-brexit-terms-opens-way-to-next-phase-of-talks-2017-12-08).
U.K. Prime Minister Theresa May this week suffered a legislative
defeat as the U.K.'s lower house voted to amend the Brexit bill to
give members of parliament the power to reject the final divorce
deal struck with Brussels. The government had warned that the
measure could jeopardize a smooth exit from the EU in March 2019.
May on Thursday reportedly said she was "disappointed" by the vote,
but that Britain remains on course to exit from the European Union
in 2019.
Stock movers: Bank shares were in the red. HSBC Holdings PLC
(HSBA.LN) (HSBA.LN) fell 0.9% and Standard Chartered PLC (STAN.LN)
dropped 1.1%.
Barclays PLC (BCS) (BCS) fell 1% and Royal Bank of Scotland
Group PLC (RBS.LN) (RBS.LN) was 0.6% lower. Lloyds Banking Group
PLC (LLOY.LN)(LLOY.LN) was off 0.1%.
Persimmon PLC shares (PSN.LN) fell 1.2% after the home builder
said Chairman Nicholas Wrigley will resign from the board
(http://www.marketwatch.com/story/persimmon-chairman-nicholas-wrigley-to-resign-2017-12-15-24852834).
He will remain in his position while the company looks for his
successor.
BT Group PLC (BT.A.LN) was up 0.4% and Sky PLC (SKY.LN) gained
0.5%, with BT Group saying it's reached an agreement with Sky to
provide packages of their TV channels on each other's platforms.
(http://www.marketwatch.com/story/bt-sky-agree-deal-for-cross-supply-of-tv-packages-2017-12-15)
Other advancers include property investment Segro PLC (SGRO.LN)
, up by 1.5%, and energy suppliers SSE PLC (SSE.LN) and United
Utilities Group PLC (UU.LN) higher by 1.1% and 0.8%,
respectively.
(END) Dow Jones Newswires
December 15, 2017 04:10 ET (09:10 GMT)
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