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London midday: UK stocks pull back from six-week high despite upbeat Eurozone data

Fri, 14th Nov 2014 11:28

Mining and oil shares were leading the UK stock market lower on Friday as commodity prices weakened, with the FTSE 100 pulling back after hitting its highest level in a month and a half.Nevertheless, losses were only modest in London, with sentiment supported by some reassuring growth figures from the Eurozone, where Germany and France escaped falling into recession and Greece managed to exit its own.The Footsie was trading 0.3% lower at 6,615 by midday. The index settled at 6,635.45 on Thursday, its highest close since 29 September, when it finished at 6,646.60.Eurozone gross domestic product (GDP) growth picked up to 0.2% in the third quarter of 2014, according to Eurostat, surprising analysts who had expected the expansion to remain steady at 0.1% from the preceding three months. The annual GDP growth rate was unchanged at 0.8%, better than the 0.7% forecast. The region's two-largest economies, Germany and France, both returned to growth between July and September after contracting in the second quarter, though Italy´s did the opposite.In other data, the estimate for annual consumer-price inflation was confirmed at 0.4% in October, as expected.Despite the largely better-than-expected growth figures, analysts at Barclays said they had not changed their view on growth and the outlook for monetary policy."The recovery remains fragile and subdued, while we expect inflation to hover around 0.4% year-on-year until the end of the first quarter of 2015. In this context, we continue to believe that the European Central Bank will be forced to provide further stimulus," they said.Economic data from the States will also be in focus during the session, with US retail sales and the University of Michigan US consumer-confidence index being closely watched.Resources stocks fall, Aggreko impresses with Q3 updateA host of resource stocks were lower as commodity prices weakened with Brent crude fluctuating at four-year lows. Oil producers Tullow Oil, Shell, BP and BG Group were joined in the red by miners Fresnillo, Randgold, Anglo American and Rio Tinto as metals prices weakened.Glencore was also out of favour on reports that it will stop coal output in Australia for three weeks.Temporary power and temperature control group Aggreko was higher after keeping its full-year profit guidance unchanged, despite organic growth slowing the third quarter. The company said it continued to expect 2014 underlying trading profits to be "similar to 2013", when it earned £357m.Engineering group IMI declined after announcing that organic growth eased to just 1% in the third quarter. The company also revealed it would be spending £120m on the acquisition of German power valve specialist Bopp & Reuther.Tesco was trading higher after analysts at HSBC upgraded their rating on the supermarket stock to 'overweight'. The wider retail sector was also performing well, including Next, Card Factory, N Brown and Home Retail.Technology group Premier Farnell was a heavy faller after warning that full-year operating margins would be below last year due to a "softer trading environment".Market MoverstechMARK 2,849.18 -0.21%FTSE 100 6,614.86 -0.31%FTSE 250 15,602.49 -0.19%FTSE 100 - RisersAggreko (AGK) 1,584.00p +2.72%Aberdeen Asset Management (ADN) 439.80p +1.73%Standard Life (SL.) 407.50p +1.47%Burberry Group (BRBY) 1,553.00p +1.37%Tesco (TSCO) 193.55p +1.26%Kingfisher (KGF) 294.90p +1.06%InterContinental Hotels Group (IHG) 2,570.00p +0.86%Capita (CPI) 1,064.00p +0.85%International Consolidated Airlines Group SA (CDI) (IAG) 423.30p +0.79%Pearson (PSON) 1,210.00p +0.75%FTSE 100 - FallersIntertek Group (ITRK) 2,669.00p -2.52%Tullow Oil (TLW) 455.00p -1.94%SABMiller (SAB) 3,493.50p -1.73%Anglo American (AAL) 1,338.50p -1.65%Randgold Resources Ltd. (RRS) 4,122.00p -1.58%Rio Tinto (RIO) 2,998.00p -1.53%Weir Group (WEIR) 2,122.00p -1.53%Fresnillo (FRES) 715.00p -1.52%BHP Billiton (BLT) 1,641.00p -1.32%CRH (CRH) 1,350.00p -1.32%FTSE 250 - RisersBwin.party Digital Entertainment (BPTY) 112.80p +5.03%Thomas Cook Group (TCG) 133.10p +2.62%Infinis Energy (INFI) 222.20p +2.30%Kaz Minerals (KAZ) 270.90p +2.23%Tullett Prebon (TLPR) 279.90p +2.12%Kennedy Wilson Europe Real Estate (KWE) 1,060.00p +1.92%Oxford Instruments (OXIG) 1,112.00p +1.74%Dairy Crest Group (DCG) 490.10p +1.68%Ferrexpo (FXPO) 79.15p +1.60%Merlin Entertainments (MERL) 372.20p +1.53%FTSE 250 - FallersPremier Farnell (PFL) 165.50p -8.00%Restaurant Group (RTN) 655.00p -4.31%Rotork (ROR) 2,400.00p -4.00%Centamin (DI) (CEY) 49.99p -3.21%Lonmin (LMI) 175.50p -3.09%Just Retirement Group (JRG) 129.00p -2.86%AO World (AO.) 208.60p -2.75%Polymetal International (POLY) 519.00p -2.63%Spire Healthcare Group (SPI) 317.00p -2.34%Bodycote (BOY) 618.50p -2.29%
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