LONDON (Alliance News) - The FTSE 100 ended lower Friday, with falling oil prices and mining stocks as the main drag, but not helped by a sharp decline in Shanghai prior to the London open or by subdued volumes on Wall Street as the New York market was open for just a half day.
The FTSE 100 index ended down 0.3% at 6,375.15 points, but up 0.6% for the week as a whole. The FTSE 250 closed up 0.3% at 17,265.10, and the AIM All-Share also finished up 0.3% at 732.02.
US stocks were firm at the London close, with the Dow 30 index flat, the S&P 500 up 0.1% and the Nasdaq Composite up 0.2%.
"With US stock markets open for just half a day, no major economic data before the weekend, and a sliding oil price, a drop in Europe was probably going to happen irrespective of China," said CMC Markets analyst Jasper Lawler.
The Shanghai Composite ended down 5.5% and the Hang Seng in Hong Kong off 1.9%. The fall in Chinese stocks came after the country's securities regulator urged domestic brokerages to cease financing clients' stocks purchases through over-the-counter swap contracts, in order to lessen leveraged financing risk in its stock markets after the summer stock rout.
The news weighed on UK-listed Asian-focused financial stocks such as Standard Chartered, down 1.3%, HSBC Holdings, down 0.9% and Aberdeen Asset Management, down 2.5%. In the FTSE 250, Fidelity China Special Situations fell 1.4%.
The Nikkei 225 index in Tokyo closed down 0.3%. Japan's core inflation continued to remain negative in October, weighed down by lower energy prices, raising concerns about the nation's ability to achieve its inflation target. Official data also showed that the unemployment rate dropped to a 20-year low, but household spending and income declined from the prior year.
The pound dropped after after second estimates published by the Office for National Statistics showed that the UK economic growth slowed as estimated in the third quarter.
Gross domestic product climbed 0.5% from prior quarter, unrevised from the prior estimate released on October 27. This was the eleventh consecutive quarter of positive growth. In the second quarter, the UK economy had expanded 0.7% quarter-on-quarter. On a yearly basis, GDP rose 2.3% in the third quarter, in line with preliminary estimate, compared with 2.4% in the second quarter.
The pound was quoted at USD1.5044 at the London close, having stood at USD1.5090 just before the GDP data release. Meanwhile, the euro was at USD1.0590.
European indices also headed south, with the CAC 40 in Paris ending down 0.3% and the DAX 30 in Frankfurtdown 0.2%.
German consumer confidence is set to ease for a fourth straight month in December, as the high influx of migrants raised fears of unemployment and thus hurt economic and income expectations in the biggest euro area economy. The forward-looking consumer confidence index dropped to 9.3 for December from 9.4 for November, while economists expected a score of 9.2.
Eurozone economic confidence remained unchanged in November as increases in sentiment among consumers and in services and construction were offset by deteriorating confidence in manufacturing and retail trade. The economic confidence index came in at 106.1, unchanged from October. The expected score was 105.9.
Oil stocks ended in the red as crude prices slid back from their best levels of the past week. At the London close, Brent oil was just below the USD45 line at USD44.96 a barrel, having touched USD46.47 on Wednesday. West Texas Intermediate was at USD42.00 a barrel, beneath the USD43.43 mark reached on Tuesday.
Royal Dutch Shell 'B' shares lost 0.7%, BP 0.8% and BG Group 0.6%. Mid-caps Tullow Oil and Ophir Energy fell 0.8% and 2.1%, respectively.
Miners gave back gains made on Thursday, with the FTSE 350 Mining Sector index ending down 3.7% at 7,905.77 points, having hit its lowest level since 2008 at 7,846.05. Anglo American fell 6.6%, Glencore 4.0%, Antofagasta 4.1% and BHP Billiton 3.2%.
At the London close, gold was hitting a five-year low at USD1,057.60. Gold miners Fresnillo and Randgold Resources ended down 4.5% and 4.3%, respectively.
The General Retailers Sector Index ended as the best performing index, up 0.7%, even though the Black Friday shopping event didn't appear to have been as successful as last year, at least at street level.
"There's been plenty of anecdotal evidence around this morning to suggest that Black Friday, in terms of store-based retail, has been something of a damp squib in the UK this year. TV crews outnumbered shoppers on London's retail destination Oxford Street, while many stores that we visited were virtually deserted," said Bryan Roberts, senior Vice-President & Knowledge Officer at Kantar Retail.
"It seems certain that Black Friday will largely be an online event this year, with shoppers opting for the convenience of home delivery or click & collect rather than braving a trip to the high street, retail park or shopping centre," Roberts added.
Some stocks benefited from broker notes. Inmarsat rose 1.3% at 1,101.86p after HSBC lifted its price target to 1,100p from 980p. Meanwhile, water utility Severn Trent was the best blue-chip performer, rising 2.1% after being upgraded to Hold from Sell by Investec.
In the FTSE 250, Zoopla Property ended up 3.1% after Exane BNP raised the property portal to Neutral from Underperform, while bookmaker Betfair Group rose 1.5% after Deutsche upgraded it to Buy from Neutral.
Pennon Group rose 5.5%. The water company said its profit and earnings both improved in the first half thanks to energy recovery facilities in its Viridor business and a better-than-expected contribution from recently-acquired Bournemouth Water.
Pennon, which owns South West Water and waste management business Viridor, along with the recently-acquired Bournemouth Water unit, said its pretax profit for the six months to the end of September was GBP106.8 million, up from GBP100.0 million a year earlier.
SVG Capital ended up 3.9% after the private equity investor said there is a need for "discipline and caution" amid a tough macro environment.
"The company's strong balance sheet positions us well to cover our liabilities, take advantage of any investment opportunities as they arise, as well to mitigate any short-term volatility," Chief Executive Lynn Fordham said in a statement.
Fordham's comments came as SVG said it has reaped the benefits of a strategy implemented in 2012, with investments made following that year showing a total return of 7.0% in the quarter and 10% over the nine months to October 31.
In the UK corporate calendar on Monday, Aberdeen Asset Management releases full-year results while IG Group Holdings, Cranswick, KCOM Group, NextEnergy Solar Fund, Acal and Accsys Technologies publish half-year results.
In the economic calendar, UK's consumer credit and mortgage approval data are due at 0930 GMT, while Germany's consumer price index is at 1300 GMT. In the US, the Chicago Purchasing Manager's Index is due at 1445 GMT and pending homes data are expected at 1500 GMT.
By Daniel Ruiz; danielruiz@alliancenews.com
Copyright 2015 Alliance News Limited. All Rights Reserved.
UK dividends calendar - next 7 days
Friday 10 May | |
AIB Group PLC | dividend payment date |
Alpha Group International PLC | dividend payment date |
Antofagasta PLC | dividend payment date |
Hammerson PLC | dividend payment date |
Hunting PLC | dividend payment date |
International Personal Finance PLC | dividend payment date |
Invesco Select Trust Global Equity Income PLC | dividend payment date |
Invesco Select Trust UK Equity PLC | dividend payment date |
Johnson Service Group PLC | dividend payment date |
Kerry Group PLC | dividend payment date |
Moneysupermarket.com Group PLC | dividend payment date |
Schroder Asian Total Return Inv Co PLC | dividend payment date |
Schroder European Real Estate Investments Trust PLC | dividend payment date |
Schroder Oriental Income Fund Ltd | dividend payment date |
Serco Group PLC | dividend payment date |
Smurfit Kappa Group PLC | dividend payment date |
Somero Enterprises Inc | special dividend payment date |
Taylor Wimpey PLC | dividend payment date |
Tufton Oceanic Assets Ltd | dividend payment date |
VPC Specialty Lending Investments PLC | dividend payment date |
Monday 13 May | |
Games Workshop Group PLC | dividend payment date |
Life Science REIT PLC | dividend payment date |
Seed Innovations Ltd | special dividend payment date |
Smiths Group PLC | dividend payment date |
VinaCapital Vietnam Opportunity Fund Ltd | dividend payment date |
Tuesday 14 May | |
BlackRock World Mining Trust PLC | dividend payment date |
Fidelity European Trust PLC | dividend payment date |
InterContinental Hotels Group PLC | dividend payment date |
Mondi PLC | dividend payment date |
OSB Group PLC | dividend payment date |
Rathbones Group PLC | dividend payment date |
Uniphar PLC | dividend payment date |
Wednesday 15 May | |
Capital Ltd | dividend payment date |
Grit Real Estate Income Group Ltd | dividend payment date |
Jardine Matheson Holdings Ltd | dividend payment date |
Just Group PLC | dividend payment date |
Rentokil Initial PLC | dividend payment date |
Thursday 16 May | |
abrdn Property Income Trust Ltd | ex-dividend payment date |
Alternative Income REIT PLC | ex-dividend payment date |
Aquila European Renewables PLC | ex-dividend payment date |
Balfour Beatty PLC | ex-dividend payment date |
BlackRock Latin American Investment Trust PLC | dividend payment date |
BP PLC | ex-dividend payment date |
Bunzl PLC | ex-dividend payment date |
Churchill China PLC | ex-dividend payment date |
EJF Investments Ltd | ex-dividend payment date |
Essentra PLC | ex-dividend payment date |
Fevertree Drinks PLC | ex-dividend payment date |
FRP Advisory Group PLC | ex-dividend payment date |
Greencoat UK Wind PLC | ex-dividend payment date |
GSK PLC | ex-dividend payment date |
Haleon PLC | dividend payment date |
Henderson Opportunities Trust PLC | ex-dividend payment date |
Income & Growth VCT PLC | ex-dividend payment date |
Irish Continental Group PLC | ex-dividend payment date |
James Halstead PLC | ex-dividend payment date |
Jarvis Securities PLC | ex-dividend payment date |
Kingfisher PLC | ex-dividend payment date |
M Winkworth PLC | dividend payment date |
Majedie Investments PLC | ex-dividend payment date |
Manx Financial Group PLC | ex-dividend payment date |
Mercantile Investment Trust PLC | dividend payment date |
Morgan Sindall Group PLC | dividend payment date |
Murray Income Trust PLC | ex-dividend payment date |
Ocean Wilsons Holdings Ltd | ex-dividend payment date |
Octopus Renewables Infrastructure Trust PLC | ex-dividend payment date |
PageGroup PLC | ex-dividend payment date |
Pershing Square Holdings Ltd | ex-dividend payment date |
Princess Private Equity Holding Ltd | ex-dividend payment date |
Property Franchise Group PLC | ex-dividend payment date |
Prudential PLC | dividend payment date |
RHI Magnesita NV | ex-dividend payment date |
Shell PLC | ex-dividend payment date |
Spectris PLC | ex-dividend payment date |
Supermarket Income REIT PLC | dividend payment date |
Target Healthcare REIT PLC | ex-dividend payment date |
TClarke PLC | ex-dividend payment date |
Tesco PLC | ex-dividend payment date |
TwentyFour Select Monthly Income Fund Ltd | ex-dividend payment date |
Unilever PLC | ex-dividend payment date |
Vaalco Energy Inc | ex-dividend payment date |
Vector Capital PLC | ex-dividend payment date |
Witan Investment Trust PLC | ex-dividend payment date |
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