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London close: Stocks end higher despite negative services data

Mon, 05th Oct 2015 16:03

(ShareCast News) - UK stocks gained as the market proved resilient against a batch of negative services data on hopes the Federal Reserve will keep interest rates unchanged for longer.The Markit/CIPS UK services purchasing managers' index fell to 53.3 in September from 55.6 in August, compared to analysts' estimates for a reading of 56. While it remained above the 50 level that separates expansion from contraction, it marked the third month of declines and the weakest rate of growth since April 2013."While the weak tone of the Markit/CIPS services survey in September brought more evidence of a soft end to the third quarter, we doubt that the economy is on the cusp of a renewed slowdown," according to Capital Economics.In the Eurozone, the final Markit PMI composite output index fell from 54.3 to 53.6 in September, below the 'flash' estimate of 53.9 posted last month, as the average rate of expansion failed to pick up pace in the third quarter.Eurozone retail sales were unchanged in August, according to Eurostat, compared with analysts' expectations for a 0.1% decline month-on-month, while July's rate was revised up from 0.4% to 0.6%.Elsewhere in the euro-area, Greece was set to unveil a 2016 draft to satisfy international creditors. In July Greece agreed with its creditors to implement spending cuts and economic reforms in exchange for an €86bn bailout.Across the Atlantic, the Institute for Supply Management revealed its services index declined from 59.0 in August to 56.9 last month, falling below the 57.5 reading analysts had expected.Separately, the seasonally adjusted Markit US services PMI fell from 56.1 to 55.1 compared with the 55.6 flash estimate published last week.The weak data follow's last Friday's worse-than-forecast US non-farm payrolls, which pushed back expectations for an interest rate hike."With inconclusive economic data in recent weeks, the Fed is now split on the timing of an interest rate rise," said Dennis de Jong, managing director at UFX.com. "That situation is unlikely to change in response to today's non-manufacturing figures, which aren't strong enough to sway Janet Yellen and Co. towards a clear decision."Among corporate stocks, Glencore surged on reports the struggling mining company is in talks to sell its agricultural business. Singapore´s sovereign wealth fund, Japanese trading house Mitsui & Co. and a Canadian pension fund are among the parties who had expressed an interest in the unit, Bloomberg reported. In another boost to the stock, head of Glencore Ivan Glasenberg on Monday said he believes copper prices should rise as more companies cut back mine production, Bloomberg reported.Lloyds Banking Group rallied on news the government will start offering portions of its stake in the lender to private investors in spring 2016.Oil producers including Royal Dutch Shell, BP and BG Group, jumped as Brent and West Texas Intermediate crude rose 3.2% to $49.77 per barrel and 2.6% to $46.79 per barrel, respectively. "Oil has jumped as tension in the Middle East are rising as Russia is backing the President in Syria. As the violence continues oil will keep climbing higher," said IG analyst David Madden. Russia's oil minister Alexander Novak on Saturday said the nation is ready to meet with OPEC to discuss the situation facing oil producers.Rolls Royce advanced after announcing plans to cut another 400 jobs in its marine business on top of the 600 job cuts already announced in MayKaz Minerals shot higher as copper prices added 1% either side of the Pond.Allied Minds posted healthy gains after saying its subsidiary, Precision Biopsy, has raised $33.6m to accelerate the commercial expansion of its ClariCore biopsy system.Playtech was the standout loser after the company said it has received a letter from the Central Bank of Ireland opposing the proposed takeover of Ava Trade. Market MoverstechMARK 3,079.94 +2.06%FTSE 100 6,287.73 +2.57%FTSE 250 17,096.93 +1.79%FTSE 100 - RisersGlencore (GLEN) 110.90p +16.74%Standard Chartered (STAN) 706.40p +5.95%Antofagasta (ANTO) 536.50p +5.30%Aberdeen Asset Management (ADN) 322.20p +5.12%Royal Dutch Shell 'A' (RDSA) 1,686.00p +4.85%Royal Dutch Shell 'B' (RDSB) 1,700.50p +4.84%St James's Place (STJ) 897.50p +4.73%Anglo American (AAL) 579.40p +4.66%BG Group (BG.) 1,033.00p +4.58%BP (BP.) 367.00p +4.42%FTSE 100 - FallersNational Grid (NG.) 931.40p -0.06%FTSE 250 - RisersKaz Minerals (KAZ) 104.20p +13.57%Premier Oil (PMO) 78.75p +11.86%AL Noor Hospitals Group (ANH) 933.00p +9.25%Petra Diamonds Ltd.(DI) (PDL) 94.00p +8.48%Tullow Oil (TLW) 208.50p +8.14%Petrofac Ltd. (PFC) 792.50p +6.81%Weir Group (WEIR) 1,299.00p +6.13%Aggreko (AGK) 1,017.00p +5.55%Cairn Energy (CNE) 154.80p +5.23%Ashmore Group (ASHM) 267.80p +5.23%FTSE 250 - FallersPlaytech (PTEC) 807.50p -2.48%Tate & Lyle (TATE) 580.50p -1.28%Clarkson (CKN) 2,258.00p -1.01%Bank of Georgia Holdings (BGEO) 1,813.00p -0.82%Nostrum Oil & Gas (NOG) 523.00p -0.76%Ted Baker (TED) 3,266.00p -0.73%B&M European Value Retail S.A. (DI) (BME) 334.50p -0.71%Telecom Plus (TEP) 1,083.00p -0.64%Acacia Mining (ACA) 261.60p -0.57%Dignity (DTY) 2,391.00p -0.46%FTSE TechMARK - RisersOxford Instruments (OXIG) 604.50p +6.71%Filtronic (FTC) 6.88p +5.77%E2V Technologies (E2V) 233.50p +3.09%XP Power Ltd. (DI) (XPP) 1,662.00p +2.28%KCOM Group (KCOM) 91.50p +1.10%Spirent Communications (SPT) 76.25p +0.99%Ricardo (RCDO) 893.50p +0.96%Gresham Computing (GHT) 110.00p +0.92%Innovation Group (TIG) 39.50p +0.64%Consort Medical (CSRT) 933.00p +0.48%FTSE TechMARK - FallersTriad Group (TRD) 31.00p -3.12%RM (RM.) 162.25p -2.84%Oxford Biomedica (OXB) 7.75p -1.77%Dialight (DIA) 664.50p -1.63%BATM Advanced Communications Ltd. (BVC) 19.75p -1.25%IShares Euro Gov Bond 7-10YR UCITS ETF (IEGM) € 203.50 -0.27%NCC Group (NCC) 276.75p -0.27%Sepura (SEPU) 173.75p -0.14%Skyepharma (SKP) 344.75p -0.07%
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