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(Alliance News) - Equities in London managed to keep their heads above water midday Friday, outperforming continental peers as news of a US infrastructure deal, which lifted markets in Asia and New York, failed to add a similar spark to the European session.
"Today has seen a return to the indecisive mood evident throughout much of the week," IG analyst Joshua Mahony commented.
The FTSE 100 index was up 7.92 points, or 0.1%, at 7,117.89 midday Friday. The mid-cap FTSE 250 index was up 24.57 points, 0.1%, at 22,534.69. The AIM All-Share index was up 0.4% at 1,243.39.
The Cboe UK 100 index was up marginally at 708.81. The Cboe 250 was down 0.1% at 20,227.33, and the Cboe Small Companies fell fractionally to 15,326.39.
In Paris, the CAC 40 was down 0.1%, while Frankfurt's DAX 30 fell 0.2%.
"The FTSE is outperforming its European peers, thanks to a boost from energy and mining stocks overshadowing weakness in travel stocks. Higher commodity prices combined with a dovish BoE policy are making the UK market an attractive place to invest," OANDA analyst Sophie Griffiths commented.
BHP shares were 1.8% higher, Antofagasta was up 1.3% and Rio Tinto climbed 1.1%.
US President Joe Biden announced Thursday he has reached a deal with a bipartisan group of senators to rebuild the nation's infrastructure, likely unlocking the most funding for roads, bridges and ports in decades.
A breakthrough on a tentative agreement came late Wednesday, with the senators agreeing on a USD973 billion package over five years, with some USD559 billion in new funding.
"Joe Biden may have said 'we have a deal' on his USD1.2 trillion US infrastructure plan, yet the amount is lower than originally hoped for. Nonetheless, investors remain optimistic that the plan will be passed and help to fuel US economic recovery," AJ Bell investment director Russ Mould noted.
Equities in New York are called higher on Friday. The Dow Jones Industrial Average is called up 0.3% and the S&P 500 up 0.1%.
The tech-heavy Nasdaq Composite is called up 0.2%, despite big tech firms coming under increasing regulatory scrutiny in both the UK and the US.
UK's competition watchdog said it has opened a formal probe into Amazon.com and Alphabet's Google. The UK Competition & Markets Authority said this is due to concerns that the duo have not done enough to fight fake reviews on their platforms.
The move by the UK regulator follows US lawmakers advancing blockbuster legislation Thursday aimed at curbing the power of big tech firms with a sweeping reform of antitrust laws, setting the stage for a tough floor fight in Congress. In a marathon session spanning two days, House Judiciary Committee members approved six bills which take aim at the business practices of Google, Amazon, Apple and Facebook.
Amazon shares were up 0.4% in pre-market trade, Alphabet was 0.1% higher, while Apple was flat and Facebook up 0.2%.
Nike shares were 12% higher pre-market in New York, on the back of strong fourth quarter and annual results. On Thursday, the athletic apparel maker said revenue in the three months to May 31, rose by 96% to USD12.3 billion. Net income was USD1.5 billion, a swing from a loss of USD790 million a year ago.
In London, athleisure retailer JD Sports rose 3.2%, the best blue chip performer, in a positive read across. Adidas rose 5.5%, Frankfurt's best-performing large-cap stock.
WPP rose 1.9%, also among the best FTSE 100 performers, after Credit Suisse raised the advertising firm to Neutral from Underperform.
"Airlines have failed to advance on the news that the government has decided to expand its list of 'green' countries. With summer in full swing, the news that airlines can soon ramp-up trips to the likes of Malta, the Balearics, and Barbados should help provide greater confidence going forward. However, the rise of the Delta variant in the UK has raised a major risk that we could soon see the EU place quarantine restrictions upon all visitors from our shores," IG's Mahony added.
International Consolidated Airlines Group, owner of British Airways, was down 1.2%. Budget carrier easyJet fell 0.6% and holiday firm Jet2 lost 2.3%.
Sterling was quoted at USD1.3904 midday in London, largely flat from USD1.3900 at the equities close on Thursday. The euro stood at USD1.1941, improved from USD1.1930. Against the yen, the dollar was trading at JPY110.76, down from JPY110.86.
Brent oil was quoted at USD75.33 a barrel on Friday afternoon in London, down from USD75.50 late Thursday. Gold was quoted at USD1,782.74 per ounce, up against USD1,779.00.
The economic events calendar on Friday US personal consumption expenditure index figures for May released at 1330 BST - the core PCE reading is the Federal Reserve's preferred gauge of inflation.
The core price index is expected to rise 3.4% year-on-year, according to FXStreet, after growth of 3.1% in April.
"A higher US Core PCE Price Index tonight could introduce some inflation gremlins for Wall Street, but it would take a severe upside surprise and some Fed-speak to upset a positive finish to the week," OANDA analyst Jeffery Halley commented.
By Eric Cunha; ericcunha@alliancenews.com
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