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London close: GKN and Next lead FTSE to 20 point gain

Tue, 29th Jul 2014 16:59

- FTSE up 19.68 points to 6,807.75- US house prices up 9.3% in April- Housing data shows 0.2% monthly increasetechMARK 2,782.23 +0.22%FTSE 100 6,807.75 +0.29%FTSE 250 15,687.02 +0.45%A positive response to updates from engineer GKN and fashion retailer Next drove the FTSE 100 index 19.68 points higher to 6,807.75. The gains were limited by the European Union's decision to impose further sanctions against Russia, while declines over in the US also pulled the index lower in late trading. There was little out on Tuesday in the way of UK data, although figures did show that the fallout from the Mortgage Market Review (MMR) appeared to be passing, according to economists following the release of the latest statistics on personal and mortgage lending.Total lending to individuals increased by 0.2% month-on-month (1.9% year-on-year) in June, or £2.5bn, to reach £1.4trn, according to the Bank of England.Mortgage lending increased by 0.2% month-on-month (1.5% year-on-year) to reach £1.28trn.Looking abroad, China's demand for oil turned around in June, according to a Platts analysis of Chinese government data, with the apparent oil demand up 2.7% year-on-year to an average of 10.25m barrels per day. Over in the US, house prices rose at an annual rate of just 9.3% in April, slowing from the 10.8% growth registered in April, according to the Case-Shiller 20-city composite index. Analysts had expected a 9.9% increase. Meanwhile, the EU and the US were poised to impose a new set of heavier sanctions on Russia that will include restrictions on certain sectors including banking and energy. Ambassadors from the EU's 28 member states were meeting in Brussels with the aim of bringing new measures into force within 24 to 48 hours, with the White House pledging to fully coordinate with Europe and strengthen its existing trade sanctions.Meanwhile, ongoing fighting in Gaza claimed the lives of at least a hundred Palestinians, according to reports. Israel is said to have stepped up its attack of Gaza with 60 airstrikes targeting Hamas sites, including the home of the organisation's leader Ismail Haniyeh, as well as government offices and TV stations.BoE's Broadbent plays down concerns over UK deficitThe Bank of England's (BoE) Deputy Governor Ben Broadbent argued Britain's large current account deficit did not pose an "existential threat" to the economy. Broadbent admitted that the current account deficit rose to 4.5% of gross domestic product (GDP) in 2013 from 1.5% in 2011, higher than during any of Britain's financial crises in recent decades.In other BoE news, the Bank has decided to push ahead with its plans for super-tough bonus clawbacks on City bankers.The rules have been described as the toughest in the banking world but also "unreasonable" and even "unenforceable". A BoE consultation paper in March suggested bankers could be forced to give back cash up to six years after they had received and spent it.GKN shares are top performers after higher H1 profitsGKN climbed into the top spot after saying that a good performance by its automotive business fuelled 6% higher profits at the engineering group in the first half to £296m. However, a strong pound saw sales fall 1%.High street giant Next rose after lifting its sales and profit guidance for the full year after a strong first half. Packaging and paper group Mondi gained after it also said its bottom line was expected to beat forecasts this year.Supermarkets were higher despite data from Kantar Worldpanel that showed the British grocery market hit its lowest growth rate for a decade as discounters took another bite out of Tesco and Morrisons' business. Emerging-markets bank Standard Chartered was in demand after JPMorgan Cazenove upgraded the stock from 'neutral' to 'overweight' after a "material underperformance" in the shares as of late.Wealth manager St James's Place was in the red despite a seemingly strong first half as it hiked its interim dividend by 40% and posted record funds under management. Analysts at Panmure Gordon highlighted that the company missed consensus estimated with its pre-tax IFRS operating profit.Oil major BP was lower even though it registered a 34% jump in second-quarter profits, as it said that further sanctions imposed on Russia "could have a material adverse impact" on its business and corporate relationships.FTSE 100 - RisersGKN (GKN) 366.00p +6.67%Next (NXT) 6,690.00p +2.61%Coca-Cola HBC AG (CDI) (CCH) 1,414.00p +2.32%Hammerson (HMSO) 608.00p +2.10%Standard Chartered (STAN) 1,248.00p +2.09%Intu Properties (INTU) 326.30p +2.06%CRH (CRH) 1,463.00p +1.95%Fresnillo (FRES) 957.50p +1.86%Hargreaves Lansdown (HL.) 1,066.00p +1.81%RSA Insurance Group (RSA) 466.50p +1.68%FTSE 100 - FallerseasyJet (EZJ) 1,304.00p -2.98%BP (BP.) 484.25p -2.54%St James's Place (STJ) 771.00p -2.41%British Sky Broadcasting Group (BSY) 890.00p -1.60%Aberdeen Asset Management (ADN) 430.70p -0.99%Petrofac Ltd. (PFC) 1,116.00p -0.89%AstraZeneca (AZN) 4,322.50p -0.88%BG Group (BG.) 1,201.50p -0.87%Royal Mail (RMG) 426.30p -0.86%Admiral Group (ADM) 1,469.00p -0.81%FTSE 250 - RisersElementis (ELM) 270.70p +5.17%NMC Health (NMC) 470.40p +3.38%PZ Cussons (PZC) 359.50p +3.33%Countrywide (CWD) 510.00p +3.18%Rightmove (RMV) 2,265.00p +2.58%Entertainment One Limited (ETO) 342.40p +2.45%Electrocomponents (ECM) 238.50p +2.32%Spectris (SXS) 1,960.00p +2.30%Hochschild Mining (HOC) 167.00p +2.27%WH Smith (SMWH) 1,154.00p +2.21%FTSE 250 - FallersPetra Diamonds Ltd.(DI) (PDL) 199.90p -7.71%Imagination Technologies Group (IMG) 184.80p -4.00%AO World (AO.) 193.30p -3.35%Alent (ALNT) 343.80p -2.74%Just Eat (JE.) 210.00p -2.51%Exova Group (EXO) 234.00p -2.50%Ocado Group (OCDO) 343.00p -2.22%Bwin.party Digital Entertainment (BPTY) 86.05p -1.94%Jardine Lloyd Thompson Group (JLT) 1,037.00p -1.80%Cobham (COB) 294.70p -1.70%NR
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Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

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Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

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