Spire Healthcare Share News (SPI)

LONDON (Alliance News) - Stocks closed lower Friday as a sell-off of Italian bond and stocks dragged markets across the continent down, echoing the Eurozone crisis in spite of a continued sliding pound.The FTSE 100 index ended the day closing 0.5% lower, or 35.24 points at 7,510.20. The FTSE 250 ended 0.3% lower, or 20,307.04 points, at 20,307.04, and the AIM All-Share ended up 0.2%, or 1.71 points, at 1,097.92.The Cboe UK 100 ended down 0.4% at 12,762.20, the Cboe 250 closed down 0.4% at 18,445.38, and the Cboe Small Companies ended 0.3% lower at 12,142.47."The quarter is ending on a downbeat note, particularly in Europe, where uncomfortable echoes of the eurozone crisis have sent investors running from European assets. What started as a flight from Italian equities and bonds has turned into a broader rout for the European market complex, just as investors were beginning to think that Europe had turned a corner," Chris Beauchamp, chief market analyst at IG. Beauchamp added: "As with Brexit, both sides are at fault. The Italian government needs to be more efficient at gauging the view from Brussels, but Brussels - and, of course, Frankfurt - needs to be more flexible. Giving Rome more leeway would avoid the crisis, but with Britain hammering on the front door, the EU is unable to focus its attention on Italy knocking at the rear." In Paris the CAC 40 was 0.8% lower, while the DAX 30 in Frankfurt was down 1.5%, both affected by the hit to Italian government bonds. David Madden, market analyst at CMC Markets UK, said: "European stock markets are firmly in the red this afternoon as the surge in Italian government bond yields has rattled investor confidence. The cost of borrowing for the Italian government has jumped today given policies of the coalition."Italian government bonds were hit with a sell-off after the new populist government in Rome agreed on a budget framework that threatens to breach EU rules.The ruling Five Star Movement and League parties decided late Thursday on a target budget deficit for 2019 of 2.4% of gross domestic product.M5S leader Luigi di Maio and League leader Matteo Salvini overruled their economy minister, Giovanni Tria, who had wanted a lower deficit to bring down the country's massive public debt in line with EU rules.By Friday afternoon, the yield on 10-year Italian government debt jumped by 0.47% to 3.25%. Bond yields rise when bond prices fall, and vice versa.The yield on Italy's ten-year paper is the second highest in the eurozone, following Greece, at 4.16%.The pound was quoted at USD1.3048 at the London equities close, compared to USD1.3096 at the same time on Thursday, due to the firmer US dollar and a string of negative economic forecasts. The UK economy has suffered its weakest six-month growth period since 2011, as the figure for the first quarter was revised lower.While the second reading for gross domestic product confirmed initial estimates of 0.4% growth in the second quarter from the quarter before, the Office for National Statistics said growth was weaker than originally thought in the first three months of the year.The ONS has revised quarter-on-quarter GDP growth down from 0.2% to 0.1% for the period from January to March this year - a period that saw the UK hit by extreme wintry weather brought in by the Beast from the East.The 0.4% quarter-on-quarter estimate for second quarter GDP was in line with economist estimates. The annual rise for the second quarter was revised down to 1.2% from 1.3%.Meanwhile, due to wider visible trade deficit and primary income shortfall, the UK current account deficit widened by GBP4.6 billion to GBP20.3 billion in the second quarter. This was equivalent to 3.9% of GDP.The total trade deficit widened to GBP6.1 billion in the second quarter from GBP3.3 billion a quarter earlier. The widening was driven by an increase to imports of goods, which reached a record high of GBP120.6 billion in the second quarter.Finally, UK consumer confidence weakened in September amid heightened uncertainty surrounding Brexit, survey data from GfK showed.The consumer sentiment index dropped to negative 9 in September from negative 7 in August. The expected score was negative 8. Four sub-components of the index deteriorated in September and one stayed unchanged. The index measuring changes in past personal finances decreased three points to plus 1.Expectations for the general economic situation over the next 12 months edged down one point to negative 27. Meanwhile, the major purchase index stayed the same this month at plus 6.The euro stood at USD1.1619 at the European equities close, lower against USD1.1669 the prior day.Eurozone inflation increased in September, exceeding the central bank's ceiling, on food and energy prices, while core price growth eased unexpectedly, official data showed Friday.Inflation rose marginally to 2.1%, in line with expectations, from 2% in August, Eurostat reported. A similar 2.1% was logged in July. Final data is due on October 17.The European Central Bank targets "below, but close to 2%" inflation.On the London Stock Exchange, the worst performer on the FTSE 100 was RSA Insurance, down 9.3%.The general insurer reported its UK business suffered an underwriting loss for the third quarter of 2018. UK premiums are lower, RSA said, as it takes pricing and re-underwriting action, but international business, such as in Scandinavia and Canada, is more positive.The UK division made an underwriting loss of around GBP70 million during the third quarter, recording a 110% combined ratio. A ratio over 100% represents underwriting losses.The company blamed increased weather, large losses, and attritional claims for the disappointing UK performance, with its Marine portfolio the worst hit.Third-quarter group net written premiums are 4% higher year-on-year. In the year-to-date, they are 2% down on a headline basis but up 1% net of reinsurance changes.At the other end of the blue chip index, Randgold Resources finished the best performer, closing up 3.6%Dow Jones reported the gold miner refuted reported claims by Societe de Miniere de Kilo-Moto to the effect that the proposed Barrick and Randgold merger will introduce a new partner in the Kibali joint venture in the Democratic Republic of Congo and that it consequently intends to "assert its rights".The company said the proposed merger would have no effect on Kibali Goldmines SA, in which Randgold has an indirect 45% interest while Societe de Miniere holds 10%. The other joint venture partner is AngloGold Ashanti. There are no provisions in the joint venture agreement and the related documentation which give Societe de Miniere any rights resulting from the proposed merger.National Grid gained 1.5% on the day after the UK energy regulator Ofgem it to claw back some costs for work carried out, but denied another similar request.National Grid had been seeking permission to recover around GBP140 million from consumers for replacing a gas pipeline in the Humber estuary, and Ofgem had told the FTSE 100-listed firm to show why this would help consumers.Since receiving new information, Ofgem has decided to allow National Grid to recover GBP111 million from consumers.United Utilities was another strong performer on the FTSE 100, ending the day 1.6% higher.The company said trading in the first half of its financial year was in line with expectations but hot weather drove up costs. United Utilities said that in the six months to September its revenue was above the same period last year, reflecting regulatory revenue changes.The company incurred higher operating costs during the period, which the FTSE 100-listed water and wastewater utility expects to record as an adjusted item. As such, underlying profit for the first half of its year is likely to exceed the previous year despite higher-than usual infrastructure renewals expenditure.On the FTSE 250, outsourcing company Serco was ended the day the best performer, up 11%.The outsourcer said trading in the first few months of the second half will result in a better outcome for 2018, one which will be "meaningfully ahead" of current market expectations.The company said a strong operating performance along with several non-recurring trading items, such as end-of-contract settlements, and other commercial negotiations will contribute to the better than expected outcome.Serco is predicting underlying trading profit of GBP90 to GBP95 million on revenue of about GBP2.8 billion. Serco's previous guidance for revenue was GBP2.7 billion to GBP2.8 billion with underlying trading profit expected to be about GBP80 million.The company is also expecting its net debt to be towards the lower end of its range, GBP200 million to GBP250 million, from having previously expected it to be at the mid-to-upper end.At the opposite end of the FTSE 250, Spire Healthcare, ended down 3.4%. Barclays has cut the firm to an Underweight rating from Equal Weight, and lowered its price target to 130 pence from 190p.Thomas Cook closed down 5.4% after HSBC cut the stock to Hold from Buy, and lowered its price target to 70p from 150p.Waste management company Renewi ended Friday down 4.2% after it said its trading in the first half of the year, ending September, has continued "broadly" in line with management's expectations.The company said its merger integration project is progressing "well" and remains on track to deliver the committed EUR30 million of cost synergies for the year ended March 2019.Renewi expect its full-year results to be in line with expectations. Brent oil was quoted at USD82.85 a barrel at the equities close from USD81.77 at the same time the prior day. Gold was quoted at USD1,192.70 an ounce at the London equities close against USD1,183.00 on Thursday.Stocks in New York were up at the London equities close. The DJIA was up 0.2%, the S&P 500 index 0.2% higher and the Nasdaq Composite was also up 0.2%.In the US, a report released by the University of Michigan showed consumer sentiment in the US improved by slightly less than initially estimated in the month of September.The report said the consumer sentiment index for September was downwardly revised to 100.1 from the preliminary reading of 100.8. Economists had expected the index to be unrevised.Despite the downward revision, the final reading for September still reflects a notable increase from the final August reading of 96.2.The economic calendar on Monday has German Manufacturing PMI at 0955 CEST, Eurozone Manufacturing PMI and unemployment data at 1000 CEST and 1100 CEST respectively and UK Markit manufacturing at 0930 BST. China and Hong Kong markets are closed for their National Day on Monday.The UK corporate calendar has no scheduled events.