LONDON (Alliance News) - London's Main Market indices ended lower Friday, as a mixed US jobs report added to global growth concerns raised earlier in the day by a fall in producer prices in China and a drop in German industrial output.
The FTSE 100 closed down 1.1% at 6,501.14, and the FTSE 250 ended down 0.5% at 16,010.96. The AIM All-Share, however, closed the day up 0.5% at 703.45. In its first full trading week of 2015, the FTSE 100 ended 0.7% lower, despite Thursday's strong rally.
In Europe, the CAC 40 in Paris and the DAX 30 in Frankfurt both ended down 2.2%. At the London close, the DJIA was down 1.2%, while the S&P 500 and the Nasdaq Composite were both down 1.1%.
The US Labor Department said non-farm payroll employment increased by 252,000 jobs in December after jumping by an upwardly revised 353,000 jobs in November. Employment had been expected to climb by about 245,000 jobs. The stronger than expected job growth helped to push the unemployment rate down to 5.6% in December from 5.8% in November, its lowest level since June 2008.
However, average hourly earnings in December fell by 0.2% month-on-month, missing expectations for a 0.2% rise and compared with a revised 0.2% increase in November. Following the report, Chicago Federal Reserve President Charles Evans said the central bank should be patient on raising interest rates due to concerns about low inflation and declining US wages. Despite overall improvements in the labor market, Evans would not start raising rates from zero before 2016, he said in a televised interview on CNBC.
"[The fall in wages] is significant, as if the US economy's purported growth isn't being felt in the wallets of average Americans, then the feasibility, and wisdom, of a Federal Reserve interest rate hike comes into question," said Connor Campbell, financial analyst at Spreadex.
Producer prices in China fell in December, dropping 3.3% from a year earlier, picking up speed from a fall of 2.7% in November. Consumer prices rose 1.5% on the year in December, in line with forecasts. However, for the full year, the country's consumer price index rose 2.0%, below the central bank's 3.5% annual inflation target.
German industrial production dropped 0.1% on the month in November as energy output fell, adding to the prospect of increased stimulus measures from the European Central Bank. Trade balance figures for Germany showed a 2.1% drop in exports from Europe's largest economy in November, while imports rose 1.5%.
Oil prices remained under pressure, with Brent falling to another five-and-a-half year low towards the end of the trading session. At its lowest level of the day, it traded at USD48.712 a barrel. US benchmark West Texas Intermediate fell to a low of USD47.14 a barrel.
Housebuilders Persimmon, down 5.2%, Barratt Developments, 5.1%, and Taylor Wimpey, down 5.4% closed as the worst performers in the FTSE 100 following downgrades from Jefferies. Taylor Wimpey was cut to Hold from Buy, Barratt was cut to Underperform from Buy, and Persimmon was downgraded to Underperform from Hold.
Catlin Group, up 6.0%, closed as the biggest gainer in the FTSE 250. New York-listed XL Group and Catlin Group said they've agreed the terms of a GBP2.79 billion deal that will see XL acquire its re-insurance peer. According to a joint-statement, Catlin shareholders are set to receive 388 pence and 0.130 new XL shares, plus an expected 2014 final dividend of 22 pence in cash to be paid by Catlin. This values Catlin at about 715.3 pence per share. Catlin closed trade at 702.00p.
Laird, closed as the worst mid-cap performer, down 9.1%. The electronics company said it is confident that its expectations for the financial year 2014 remain on track. "Execution of our strategy has delivered further good progress through the year, and we remain encouraged by the outlook for Laird," Chief Executive David Lockwood said in a trading update. Liberum said Laird is likely being held back by weakness at major customer Samsung.
The economic calendar on Monday is very light with no scheduled domestic or European releases. US Labor Market Conditions Index figures for December will be at 1500 GMT.
The only scheduled corporate releases Monday will be a trading statement from Taylor Wimpey, and a third quarter interim management statement from online domestic appliance retailer AO World.
By Neil Thakrar; neilthakrar@alliancenews.com
Copyright 2015 Alliance News Limited. All Rights Reserved.
UK dividends calendar - next 7 days
Monday 6 May | |
no events scheduled | |
Tuesday 7 May | |
Begbies Traynor Group PLC | dividend payment date |
Ferguson PLC | dividend payment date |
Manchester & London Investment Trust PLC | dividend payment date |
Mobius Investment Trust PLC | dividend payment date |
Nexus Infrastructure PLC | dividend payment date |
Pebble Group PLC | dividend payment date |
Pinewood Technologies Group PLC | special dividend payment date |
Thungela Resources Ltd | dividend payment date |
Volution Group PLC | dividend payment date |
Wednesday 8 May | |
Melrose Industries PLC | dividend payment date |
Personal Group Holdings PLC | dividend payment date |
Thursday 9 May | |
Admiral Group PLC | ex-dividend payment date |
AG Barr PLC | ex-dividend payment date |
Aurora Investment Trust PLC | ex-dividend payment date |
Balanced Commercial Property Trust Ltd | ex-dividend payment date |
Bank of Ireland Group PLC | ex-dividend payment date |
Bellevue Healthcare Trust PLC | ex-dividend payment date |
Braime Group PLC | ex-dividend payment date |
Centaur Media PLC | ex-dividend payment date |
Chenavari Toro Income Fund Ltd | ex-dividend payment date |
Clarkson PLC | ex-dividend payment date |
Coca-Cola Europacific Partners PLC | ex-dividend payment date |
Custodian Property Income REIT PLC | ex-dividend payment date |
CVC Income & Growth Ltd EURO | ex-dividend payment date |
CVC Income & Growth Ltd GBP | ex-dividend payment date |
Domino's Pizza Group PLC | dividend payment date |
Epwin Group PLC | ex-dividend payment date |
F&C Investment Trust PLC | dividend payment date |
Fidelity Special Values PLC | ex-dividend payment date |
Focusrite PLC | ex-dividend payment date |
Grafton Group PLC | dividend payment date |
Gresham Technologies PLC | ex-dividend payment date |
Headlam Group PLC | ex-dividend payment date |
Henderson International Income Trust PLC | ex-dividend payment date |
HSBC Holdings PLC | ex-dividend payment date |
Ibstock PLC | ex-dividend payment date |
Invesco Perpetual UK Smaller Cos Investment Trust PLC | ex-dividend payment date |
JPMorgan Global Core Real Assets Ltd | ex-dividend payment date |
Lancashire Holdings Ltd | ex-dividend payment date |
LSL Property Services PLC | ex-dividend payment date |
M&C Saatchi PLC | ex-dividend payment date |
M&G PLC | dividend payment date |
Macfarlane Group PLC | ex-dividend payment date |
Marwyn Value Investors Ltd | ex-dividend payment date |
Midwich Group PLC | ex-dividend payment date |
Montanaro UK Smaller Cos Investments Trust PLC | dividend payment date |
Octopus Titan VCT PLC | ex-dividend payment date |
One Media iP Group PLC | ex-dividend payment date |
Petershill Partners PLC | ex-dividend payment date |
Picton Property Income Ltd | ex-dividend payment date |
PRS REIT PLC | ex-dividend payment date |
Reach PLC | ex-dividend payment date |
Sherborne Investors Guernsey C Ltd | ex-dividend payment date |
Sthree PLC | ex-dividend payment date |
Sylvania Platinum Ltd | ex-dividend payment date |
Taylor Maritime Investments Ltd | ex-dividend payment date |
Tracsis PLC | ex-dividend payment date |
Travis Perkins PLC | dividend payment date |
UIL Ltd | ex-dividend payment date |
Friday 10 May | |
AIB Group PLC | dividend payment date |
Alpha Group International PLC | dividend payment date |
Antofagasta PLC | dividend payment date |
Hammerson PLC | dividend payment date |
Hunting PLC | dividend payment date |
International Personal Finance PLC | dividend payment date |
Invesco Select Trust Global Equity Income PLC | dividend payment date |
Invesco Select Trust UK Equity PLC | dividend payment date |
Johnson Service Group PLC | dividend payment date |
Kerry Group PLC | dividend payment date |
Moneysupermarket.com Group PLC | dividend payment date |
Schroder Asian Total Return Inv Co PLC | dividend payment date |
Schroder European Real Estate Investments Trust PLC | dividend payment date |
Schroder Oriental Income Fund Ltd | dividend payment date |
Serco Group PLC | dividend payment date |
Smurfit Kappa Group PLC | dividend payment date |
Somero Enterprises Inc | special dividend payment date |
Taylor Wimpey PLC | dividend payment date |
Tufton Oceanic Assets Ltd | dividend payment date |
VPC Specialty Lending Investments PLC | dividend payment date |
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