LONDON (Alliance News) - London stock prices have started Friday just as they ended Thursday, with mining stocks weighing down the FTSE 100 and Sky shares outperforming following the Bundesliga rights auction.
The FTSE 100 was down 0.9%, or 53.49 points, at 6,178.40.
Miners Anglo American, down 1.7%, Glencore, down 1.6% and BHP Billiton, down 1.3%, were all amongst the biggest fallers in the FTSE 100. The resource stocks were hit on Thursday by lower dollar-denominated commodity prices following some strength in the US dollar.
Early Friday the dollar has continued to appreciate against other currencies. The pound was quoted at USD1.4420, versus USD1.4479 at the London close on Thursday. Similarly, the euro was quoted at USD1.1318 Friday against USD1.1332 on Thursday.
Sky was the biggest of the two FTSE 100 gainers, up 0.5%. The broadcaster's share price continued to react well to news on Thursday afternoon that it will retain 93% of the broadcasting rights for the Bundesliga football league through to 2021 at an average cost per year of EUR876 million, around 80% higher than it paid under its existing contract.
Sky said that, under its new agreement with the German Professional Football Association, it will pay 32% more in the 2017/18 season, the first year of the new contract, than in the final year of its existing contract.
Over the four years of the new agreement the average costs per year will be EUR876 million, compared to an average of EUR486 million per year under its contract which concludes at the end of the 2016/17 season.
Whilst this increase came in higher than the 50% consensus expected, Haitong Research said considering the steep price increase for Premier League rights last year in the UK, many analysts may have been worried about a much bigger price increase in Germany as well. Haitong said Sky's share price "suggests muted relief".
The FTSE 250 was down 0.7% at 16,993.79 points, and the AIM All-Share was down 0.2% at 742.86.
In Europe, the French CAC 40 was down 0.7% and the German DAX 30 was down 0.8%.
In Asia Friday, the Nikkei 225 in Tokyo ended down 0.4%. The Hong Kong market returned to trade after a day off on Thursday and the Hang Seng is down 0.9%. The Shanghai market remains closed for Dragon Boat Festival.
FTSE 250-listed recruiter Hays was the worst performer in the FTSE 250 index, down 4.4% after it was downgraded to Sell from Hold by Deutsche bank. The German bank also cut its rating on Hays's peer PageGroup, which changed its name from Michael Page International Friday, to Sell from Hold. The stock traded down 2.0%.
There was also further bad news for the recruitment sector after SThree said the uncertainty created by the upcoming European Union referendum has led to a slowdown in its UK business, as it saw "mixed trading conditions" in its first half.
In a trading update, SThree said group gross profit rose 6% at constant currency in the half year to end-May from a year before, as it saw continued strong growth across its ICT business, and a continued strong performance from Continental Europe.
However, this was offset by falls in Banking and Finance, which SThree attributed to the EU referendum, and in Energy. Excluding Energy, gross profit rose 11% year-on-year. SThree was down 12%, the biggest faller in the FTSE All-Share.
In the economic calendar, the Bank of England's consumer inflation expectations survey is at 0930 BST. Later in the day, there is a preliminary reading of the US Reuters/Michigan consumer sentiment index for June and the US monthly budget statement at 1900 BST.
By Neil Thakrar; neilthakrar@alliancenews.com; @NeilThakrar1
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