LONDON MARKETS: London Markets Advance As Carney Signals Supportive Policy
03 Juli 2019 - 01:48PM
Dow Jones News
By Dave Morris
London markets increased as gilts rallied on a speech by Bank of
England Gov. Mark Carney indicating monetary policy would remain
loose.
How did markets perform?
The U.K.'s FTSE 100 rose 0.7% to 7,608.8. On Tuesday it ticked
up 0.8%.
The pound edged down 0.2% to $1.2570. It also declined 0.5%
Tuesday.
What's moving the markets?
The European Commission broke the deadlock over several top
appointments, with reports emerging Tuesday that German Defense
Minister Ursula von der Leyen would be named EC President, and in
something of an unexpected development, that long-serving
International Monetary Fund Managing Director Christine Lagarde
would head the European Central Bank
(http://www.marketwatch.com/story/imfs-christine-lagarde-wins-eu-support-to-lead-european-central-bank-2019-07-02-131033418).
Outgoing ECB President Mario Draghi's term ends October 31, and
both the EC and ECB roles will be subject to a formal confirmation
process.
Bond markets in Europe broadly rallied. At the individual
country level, a speech by Bank of England Chairman Mark Carney
(Need to
know:Fans%20of%20the%20%27buy%20everything%27%20trade%20could%20be%20facing%20some%20dicey%20near-term%20action.%20Thanks%20to%20@jameswhelan42%20for%20the%20insights.%20https:/www.marketwatch.com/story/investors-have-been-buying-almost-everything-but-look-out-warns-fund-manager-2019-07-03?mod=mw_latestnews)
late Tuesday signaled to investors that the bank might loosen the
tightening bias of its monetary policy.
In economic data, the U.K. Purchasing Managers' Index (PMI)
services survey proved underwhelming. The CIPS services PMI for
June was 50.2 versus a consensus reading of 51.
Which stocks are active?
Online real estate agency Purplebricks Group PLC (PURP.LN)
reported a pretax loss for fiscal 2019 that was larger than the
previous year. The company also said it had decided to exit from
the U.S. market
(http://www.marketwatch.com/story/purplebricks-to-exit-us-market-posts-loss-2019-07-03)
after generating lower than expected revenues. Shares rose 2.8% on
the news.
U.K. grocer J Sainsbury PLC's (SBRY.LN) first quarter fiscal
2020 results were hit by weak results for its clothing business
(http://www.marketwatch.com/story/j-sainsbury-total-retail-sales-fall-12-2019-07-03),
with total retail sales retreating 1.2%. Sainsbury's shares ticked
up 0.2%.
Unite Group PLC (UTG.LN) has agreed to buy Liberty Living Group
PLC
(http://www.marketwatch.com/story/unite-group-buys-liberty-living-for-177-billion-2019-07-03)from
a Canadian pension fund for GBP1.4 billion. Unite Group stock rose
2.4%.
(END) Dow Jones Newswires
July 03, 2019 07:33 ET (11:33 GMT)
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