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London close: Stocks rise on Ukraine ceasefire, but gains modest

Thu, 12th Feb 2015 17:13

UK stocks rose for the first time in five sessions on Thursday after a ceasefire was agreed in eastern Ukraine, though ongoing concerns about Greece and weak economic data from the States limited upside.Investors were also digesting comments from the Bank of England as it upgraded its UK growth forecasts but lowered its assumptions for inflation in the near term.London's FTSE 100 finished the day up 0.15% at 6,828.11, but had pulled back after reaching an intraday high of 6,854.62 early on.Markets pared gains slightly before the close after data showed US jobless claims rose more than expected last week, while US retail sales dropped sharply in December.Ukraine and Greece in focusRussian president Vladimir Putin on Thursday morning confirmed that the country has reached a ceasefire agreement on the Ukraine crisis which will come into effect on Sunday. The ceasefire follows 15 hours of talks with Ukrainian President Petro Poroshenko."This step in the right direction has helped boost European equity markets previously panicked by political discussions around supplying Ukraine with arms," said analyst Alastair McCaig from IG.Meanwhile, the International Monetary Fund agreed to loan Ukraine $17.5bn as part of a new economic reform programme.Over in Brussels, Wednesday evening's emergency Eurogroup meeting about Greece proved inconclusive, though this was widely expected."The meeting was the first platform where formal negotiations began, but not necessarily where decisions were due to be made. This being the first formal meeting, both sides stood firm on their positions," said economist Gizem Kara from BNP Paribas.Inflation Report and RICS house pricesThe Bank of England's Inflation Report released at 10:30 showed that policymakers expect the UK to enter deflation "at some point in the first half of 2015", though the period of falling prices would only be temporary.However, Governor Mark Carney downplayed the significance of deflation, due almost entirely to weaker oil prices, as he lifted his growth forecasts for the economy for 2016 and 2017."With the Monetary Policy Committee fairly relaxed about the prospect for deflation, we still think there is a reasonable chance of a hike before the end of this year," said economist Vicky Redwood from Capital Economics.In other news, the Royal Institution of Chartered Surveyors said its UK house-price balance fell to +7 last month from +12 in December, showing that growth - while still positive - slowed to its lowest level since May 2013.Coca-Cola HBC gains on ceasefire news, Rio impresses with returnsStocks exposed to Russia and Ukraine, such as Coca-Cola HBC, Evraz and Ferrexpo, rose strongly after a ceasefire was agreed between the two nations.Mining group Rio Tinto gained as it pledged to return nearly $6bn to shareholders in respect of 2014 after hiking its full-year dividend by 12% and announcing a $2bn share buyback. Other miners such as Glencore, Vedanta and Anglo American were also performing well.Drugmaker Shire was higher after 2015 got off to a strong start on the back of the company's biggest purchase to date and the approval of the first drug to treat binge-eating disorder. The company posted fourth-quarter earnings growth of 17% to $2.63 per share, just short of analysts' expectations, while revenue rose a better-than-predicted 19% to $1.58bn.Imperial Tobacco was also on the rise after a strong first-quarter performance from its growth brands left it confident of hitting its full-year targets.The oil and gas sector was lower despite a bounce in crude prices as heavyweights BP and Shell went ex-dividend, while volatile producer Afren plummeted. Tullow Oil was also feeling the effects of a downgrade by Societe Generale from 'buy' to 'hold'. Market MoverstechMARK 3,116.29 +0.22%FTSE 100 6,828.11 +0.15%FTSE 250 16,809.42 +1.06%FTSE 100 - RisersCoca-Cola HBC AG (CDI) (CCH) 1,159.00p +6.23%Intertek Group (ITRK) 2,568.00p +4.90%Shire Plc (SHP) 4,997.00p +4.63%Anglo American (AAL) 1,165.50p +3.74%Royal Mail (RMG) 440.50p +3.67%Burberry Group (BRBY) 1,887.00p +3.62%Hargreaves Lansdown (HL.) 1,001.00p +3.41%Mondi (MNDI) 1,258.00p +2.44%Rio Tinto (RIO) 3,039.50p +2.29%Taylor Wimpey (TW.) 143.20p +2.29%FTSE 100 - FallersBT Group (BT.A) 450.00p -2.17%GlaxoSmithKline (GSK) 1,485.50p -1.88%Royal Dutch Shell 'B' (RDSB) 2,203.50p -1.83%Royal Dutch Shell 'A' (RDSA) 2,112.50p -1.58%Compass Group (CPG) 1,118.00p -1.58%Reckitt Benckiser Group (RB.) 5,690.00p -1.47%Sage Group (SGE) 474.70p -1.35%United Utilities Group (UU.) 973.00p -1.32%easyJet (EZJ) 1,742.00p -1.30%SABMiller (SAB) 3,501.00p -1.17%FTSE 250 - RisersVedanta Resources (VED) 473.00p +9.67%Allied Minds (ALM) 482.30p +5.88%Hunting (HTG) 503.00p +5.47%Keller Group (KLR) 956.00p +5.46%IP Group (IPO) 263.10p +5.32%Kaz Minerals (KAZ) 246.30p +4.50%Electrocomponents (ECM) 208.90p +4.14%Smith (DS) (SMDS) 320.00p +3.93%Morgan Advanced Materials (MGAM) 313.80p +3.91%Balfour Beatty (BBY) 235.00p +3.80%FTSE 250 - FallersAfren (AFR) 7.11p -20.56%AO World (AO.) 304.60p -5.96%Nostrum Oil & Gas (NOG) 509.00p -3.05%Game Digital (GMD) 263.00p -2.27%Jimmy Choo (CHOO) 162.60p -2.22%Poundland Group (PLND) 380.00p -1.94%Diploma (DPLM) 780.00p -1.89%CLS Holdings (CLI) 1,560.00p -1.89%esure Group (ESUR) 229.70p -1.80%Entertainment One Limited (ETO) 289.00p -1.70%
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