Lloyds Share News (LLOY)

(Alliance News) - Stocks in London ended mixed on Thursday as the strong pound hindered the FTSE 100, while US equity markets continued to prosper from the dovish comments on Wednesday from Federal Reserve Chair Jerome Powell. The FTSE 100 index closed down 20.87 points, or 0.3%, at 7,509.82. The FTSE 250 ended up 23.78 points, or 0.1%, at 19,443.16, and the AIM All-Share closed up 2.78 points, or 0.3%, at 917.51.The Cboe UK 100 ended down 0.3% at 12,737.57, the Cboe UK 250 closed up 0.2% at 17,377.83, and the Cboe Small Companies ended up 0.1% at 11,240.96.In Paris the CAC 40 ended down 0.3%, while the DAX 30 in Frankfurt ended down 0.3%. City Index analyst Fiona Cincotta said: "The pound capitalised on the weakness of both the euro and the US dollar, extending gains versus its peers. Clearly the case of 'best of a bad bunch'. Whilst the ECB and the Fed are poised to cut imminently, the BoE still has time on its side ahead of a potential no deal Brexit come October 31. Despite warnings from Carney over the damage of a no deal Brexit, the pound pushed to a high of USD1.2571."After spending the morning in positive territory, the FTSE weighed down into the red, struggling under the stronger pound."The pound was quoted at USD1.2555 at the London equities close, up from USD1.2493 at close Wednesday, shrugging off 'no deal' Brexit warnings from Bank of England Governor Mark Carney. The BoE said UK banks could withstand the worst case no-deal Brexit scenario and a full-scale global trade war but warned "material risks of economic disruption" remain from a cliff-edge EU withdrawal.In the latest report from the Financial Policy Committee, the central bank said it had assessed lenders against a doomsday no-deal Brexit scenario together with a global slowdown sparked by the US-China trade war and found they would still be able to continue lending to UK households and businesses.However, Carney cautioned that the UK would still suffer a "major economic shock" if it crashed out of the EU, adding that the threat of a no-deal had increased in recent months.However, Carney also stressed the UK financial system was "ready for Brexit whatever form it takes".In addition, Carney dodged questions surrounding his future with speculation rife he will succeed the outgoing Christine Lagarde as head of the International Monetary Fund once his term as BoE governor ends. The Canadian, who holds both British and Irish passorts, is due to end his stint at the helm of the BoE at the end of January 2020. Carney has been installed by bookmakers as an early favourite to take over at the IMF once Lagarde is confirmed as president of the Frankfurt-based European Central Bank.IG Group's Josh Mahony said: "While GBP/USD is on the rise due to the Powell-led dollar devaluation, Carney's recent shift in tone is driving up expectations of a post-Brexit rate cut. Markets are currently pricing in a 48% chance that the BoE will cut rates in January, and thus there is plenty reason to believe the pound will fall further before long. "Today's financial stability report was a positive one for UK banks, with the likes of Barclays and RBS outperforming the index amid Carney's claims that the sector is fully prepared for even the worst form of Brexit."UK banks Barclays and Royal Bank of Scotland ended up 0.9%, 0.8% respectively, but Lloyds Banking Group ended down 0.4%. On the London Stock Exchange, housebuilders ended among the best blue chip performers following the latest results from the Royal Institution of Chartered Surveyors UK Residential Market Survey.Barratt Developments closed up 5.2%, Taylor Wimpey up 1.6%, Berkeley Group up 1.4% and Persimmon up 0.9%.Appetite for buying a home has picked up for the first time in nearly three years, surveyors have reported. An overall net balance of 10% more surveyors saw an increase rather than a decrease in interest from new buyers in June, according to RICS. Moreover, here are signs of a more stable trend in the supply of homes coming on the market, RICS said. For the first time in a year, surveyors are seeing positive growth in properties being listed for sale. "Investors raced to snap up shares in housebuilders after the latest RICS survey showed some signs of recovery in the housing market. Although it is too early to call a bounce-back in the property market based on one set of data, the news does offer a glimmer of hope for investors in housebuilding stocks," AJ Bell's Russ Mould said.Reckitt Benckiser closed up 2.5% after the household goods maker said it agreed with the US Department of Justice and the Federal Trade Commission to resolve an investigation into the sales and marketing of Suboxone Film by Indivior.Indivior was demerged from Reckitt, which makes Dettol disinfectant and Strepsils lozenges, in 2014. Suboxone is an opioid used to treat opioid addiction, acute pain, and chronic pain.Reckitt said it will pay up to USD1.4 billion to fully resolve all federal investigations into Reckitt in connection with the Indivior indictment and claims relating to state Medicaid programs for those states choosing to participate in the settlement.The settlement amount will be funded through existing borrowing facilities and cash generation, Reckitt said."The settlement will be a meaningful drag on cash flow at a time when the group is looking to shift the debt taken on to fund its USD18 billion acquisition of Mead Johnson in 2017, but Reckitt's cash generative business model should mean it can still reduce that debt pile and increase the dividend in the years ahead despite the cost of this settlement," said Hargreaves Lansdown's George Salmon. Indivior closed up 6.7% after the opioid addiction treatment producer revised its expectations for 2019 net revenue and net income higher following a stronger-than-expected first half. Indivior also said its own case with the US DoJ is separate from that of its former parent company.In April, the DoJ charged the drugmaker with using a fraudulent marketing scheme to boost prescriptions of its flagship opioid addiction treatments, causing the stock to plummet. Elsewhere, insurance giant Swiss Re said it suspended plans to float its UK business ReAssure Group in London after potential investors' interest fell off because of the poorer global economic outlook and concerns about a possible no-deal Brexit.The euro stood at USD1.1260 at the European equities close, slightly higher than USD1.1248 late Wednesday.Minutes from the European Central Bank's last monetary policy meeting showed rate setters stand ready to act in light of heightened uncertainties.At the bank's June meeting, the ECB said it expects key interest rates to remain at current levels "at least through the first half of 2020".The interest rates on refinancing operations, marginal lending facility and on the deposit facility were kept at 0.00%, 0.25% and minus 0.40%, respectively. These rates have been at record lows following the 2011 eurozone debt crisis.The accounts from the meeting, released on Thursday, showed Governing Council members observed that since their last meeting in April, US trade negotiations with both China and Mexico had "progressively deteriorated", denting global equity markets. Stocks in New York were higher at the London equities close, as the Dow Jones Industrial Average crossed the 27,000 mark for the first time on hopes of an interest rate cut from the US Federal Reserve later this month. The DJIA was up 0.7%, the S&P 500 index was up 0.2% and the Nasdaq Composite was up 0.1%.In the first day of closely watched congressional testimony, Powell said the case for lower borrowing costs "had strengthened" owing to headwinds caused by global trade uncertainty.On the economic front, US inflation slowed to 1.6% compared to June 2018, two tenths of a point lower than in May and the second straight year-on-year decline. The core index is up 2.1% compared to a year ago."This report won't stop the Fed from easing on [July] 31 but it does suggest that a 50 basis point cut would be risky," said Pantheon Macroeconomics analyst Ian Shepherdson.The Fed, which has a 2.0% inflation target, tracks the core personal consumption expenditures price index as its preferred gauge for monetary policy. The core PCE price index increased 1.5% year-on-year in May and has missed its target this year.Brent oil was quoted at USD66.95 a barrel at the London equities close, up from USD66.10 at the close Wednesday. The North Sea benchmark hit an intraday high of USD67.62 in morning trade - its highest level in six weeks, as oil rigs in the Gulf of Mexico were evacuated ahead of a hurricane.Gold was quoted at USD1,412.00 an ounce at the London equities close, higher than USD1,407.00 late Wednesday.The economic events calendar on Friday has China trade data overnight, eurozone industrial production figures at 1000 BST and US producer prices at 1330 BST. The UK corporate calendar on Friday has trading statements from emerging markets-focused asset manager Ashmore Group and no-frills gymnasiums operator Gym Group. London Close is available to subscribers as an email newsletter. Contact info@alliancenews.com