International Airlines Share News (IAG)

LONDON (Alliance News) - Stocks in London struggled to find direction on Thursday after the UK's Brexit extension benefited airlines in the FTSE 100, though a raft of shares going ex-dividend prevented the large cap index from ending in the green. The FTSE 100 index closed flat, or down 3.96 points at 7,417.95. The FTSE 250 ended up 0.7%, or 136.34 points higher, at 19,621.18, and hit a six-month high.The AIM All-Share closed 0.6%, or 5.48 points, at 938.47.The Cboe UK 100 ended down 0.1% at 12,586.51, the Cboe UK 250 closed up 0.8% at 17,537.20, and the Cboe Small Companies ended up 0.2% at 11,278.87.The pound was quoted at USD1.3075 at the London equities close, lower than USD1.3095 at the close Wednesday, in the aftermath of the UK securing a six-month Brexit extension from the EU. "Sterling remained resolute in its lack of interest celebrating the latest developments between the UK and EU, the currency seemingly after positive progress rather than can-kicking," commented Spreadex analyst Connor Campbell. The six-month extension to October 31 was a compromise solution thrashed out by EU leaders after French President Emmanuel Macron opposed to a longer delay lasting into 2020.Addressing lawmakers in the House of Commons, UK Prime Minister Theresa May said it was the "national duty" of MPs to pass a Brexit deal.Speaking in the Commons after the EU offered the UK a six-month Brexit delay until October 31, Halloween, May said Parliament needed to come together for the national good.The PM said agreeing a deal was the only way to avoid the UK holding European Parliament elections on May 23. The UK will crash out of the bloc on June 1 without a deal should it fail to participate in the elections.As a result of the Brexit delay, analysts at ING expect sterling gains to stall and were wary of downside risks emerging for the UK economy. "Growth has already been poor over recent months, and investment has been particularly disappointing. On a year-on-year basis, UK business investment was the worst among G7 economies in 2018. In theory, the temporary removal of the 'no deal' risk could unlock a modest amount of pent-up hiring and shorter-term investment. But having come so close to the cliff-edge twice now, it's much more likely that firms will use this extra time to continue preparations for a possible 'no deal' final outcome," said ING's James Smith and Petr Krpata.As such, ING no longer sees the Bank of England raising interest rates in 2019 and expect economic growth to remain sluggish."Markets are currently pricing less than five basis points of rates hikes by the end of the year, and close to 15 basis points hikes by the end of 2020. Though the pricing is already subdued (mainly for this year), suggesting that this shouldn't be an outright negative for the pound, the ongoing Brexit uncertainty will likely prevent markets from pricing in more meaningful tightening," Smith and Krpata added. On the London Stock Exchange, travel stocks ended among the FTSE 100 index risers after the UK's departure from the EU was extended past the crucial summer season. easyJet ended as the best blue chip performer, up 9.0%, British Airways parent International Consolidated Airlines Group closed up 5.7% and TUI ended 8.1% higher. "From the reaction of easyJet, TUI and IAG today it would seem investors are relieved that Britons will still be able to go abroad for the summer holidays and not face lengthy passport delays. Perhaps we can expect a last-minute rush to book holidays before the Brexit chaos resumes in the autumn, even if a six-month extension hardly banishes the lingering uncertainty," said IG Group's Chris Beauchamp. In addition, Irish budget airline Ryanair Holdings closed up 5.7%.At the other end of the large cap index, Fresnillo ended as the worst performer, down 7.1%, after the Mexican gold miner reported a drop in first quarter output, while it has also approved the Juanicipio project. Gold production in the first three months of 2019 was 211,100 ounces, 8.8% lower year-on-year and 9.0% down on the last quarter of 2018. Fresnillo said gold output fell due to lower ore processing at the Noche Buena mine and a slow recovery of leaching pads at Herradura, as well as declines in output at other mines in Mexico.In addition, ITV closed down 3.1%, Standard Life Aberdeen, down 3.9% and Aviva, down 3.0%. The stocks went ex-dividend meaning new buyers no longer qualify for the latest dividend payout.In the FTSE 250 Grafton Group closed up 8.1% after the building products supplier agreed to acquire Netherlands-based Polvo BV from the privately owned Pallieter Group for EUR131 million on a debt and cash free basis.IWG closed up 4.8% after Peel Hunt upgraded the office provider to Buy from Hold. The broker believes its share price could double in value, should the company formerly known as Regus be able to successfully transition into a franchise-style business model.In Paris the CAC 40 ended up 0.7%, while the DAX 30 in Frankfurt ended up 0.3%. The euro stood at USD1.1270 at the European equities close, up from USD1.1245 late Wednesday. In economic news from the continent, Germany's consumer price inflation slowed in March, as initially expected, latest figures from the Federal Statistical Office showed.The consumer price index rose 1.3% year-on-year following a 1.5% climb in February. That was in line with the flash estimate. In January, inflation was 1.4%.Compared to the previous month, the CPI rose 0.4% in March. Energy inflation accelerated to 4.5% from 2.9%, while food price growth halved to 0.7% from 1.4%.The harmonized index of consumer prices, which is meant for EU comparison, climbed 1.4% annually, which was slightly slower than the 1.5% estimated initially. The HICP rose 0.5% monthly in March, which was also slower than the initial estimate of 0.6%.Stocks in New York were broadly higher at the London equities close amid lingering uncertainty about the global economic outlook.The DJIA was up 0.1%, the S&P 500 index up 0.1% but the Nasdaq Composite was down 0.1%.US Federal Reserve officials remain worried about slowing economic growth abroad and the fading effects of President Donald Trump's tax cuts, minutes from the Fed's March meeting showed overnight.The central bank indicated that it would hold rates steady or possibly cut them by the end of the year.Moreover, the International Monetary Fund's warning about the slowing of global growth prospects and dovish messages being sent from the European Central Bank on Wednesday and the Federal Reserve fanned fresh concerns over economic slowdown.The IMF on Tuesday also cut its global economic growth forecasts for 2019, citing heightened trade tensions.Meanwhile, financial services giants JPMorgan Chase and Wells Fargo are due to report quarterly results before the start of trading on Friday, marking the unofficial start of the earnings season.Brent oil was quoted at USD71.32 a barrel at the London equities close, higher than USD71.08 at the close Wednesday.Gold was quoted at USD1,293.50 an ounce at the London equities close, down from USD1,306.00 late Wednesday."Gold is in the red on the back of the firmer dollar. The commodity's inverse relationship with the dollar continues and in light of the rebound in the greenback, we are now seeing renewed pressure on the commodity," said CMC Markets analyst David Madden. The economic events calendar on Friday has industrial production data from the eurozone at 1000 BST and US import and export prices at 1330 BST. The UK corporate calendar on Friday has annual results from Highland Gold Mining.