LONDON (Alliance News) - UK stocks are trading mixed Friday with investors finding little reason to significantly add to positions at the end of a relatively muted week for equity trading and ahead of a long weekend, although there are some notable individual movers.
By mid-morning Friday the FTSE 100 is down 0.3% at 6,802.50, while the FTSE 250, performing better than the leading index for the fifth consecutive day, is up 0.1% at 15,686.54. The AIM All-Share is up 0.1% and 797.95.
Within major European equity markets, the French CAC 40 is up 0.1%, and the German DAX is up 0.2.
Confidence among German firms deteriorated by more than expected in May, the German IFO suggested Friday. Business confidence fell to 110.4 in May from 111.2 in April. The score was forecast to fall to 110.9. Similarly, current conditions dropped to 114.8 from 115.3, while it was forecast to rise to 115.4. Expectations among businesses declined to 106.2 in May from 107.3 in April. The reading was also below the consensus of 106.5.
The disappointing readings follow the collapse of the German ZEW economic confidence survey earlier in the month amid concern over the ongoing tension between Russia and Ukraine, given Germany's particularly strong trade links with Russia.
Casualties are continuing to mount in the east of Ukraine, with thirteen troops killed overnight, as the government prepares to carry out its "final phase" of its military operations against militants, while preparing to hold a presidential election on Sunday. Separatists declared independence this month after they held votes declared illegal by Kiev.
UK elections also are providing a distraction Friday. Amid a quiet day for macroeconomic data, UK investors are keeping an eye on the incoming results of local election, which currently indicate a strong turnout in support of the euro-sceptic UKIP party.
"The UKIP fox is in the Westminster hen house," UKIP leader Nigel Fararge has said with regard his apparent strong results.
The support for the fringe party raises the possibility of a hung Parliament after next year's UK general election, by eating into the support of the three main parties, says Berenberg macroeconomict Rob Wood. For this reason, "UKIP should not be dismissed," the economist said.
Back within UK stocks, Barclays investors appear unfazed by the news that the FCA has delivered the bank with another fine for rate rigging. This time the GBP26 million fine is for the manipulation of the London Gold Fixing. While GBP26 million is small change for a bank that made GBP1.7 billion in the first quarter, the damage to its public image may be greater. Barclays shares are currently up 0.7%.
Meanwhile, Atlas Mara, the London-listed investment firm of Barclays' ousted former chief executive, Bob Diamond, Friday said it has agreed to acquire the government of Rwanda's 77% stake in the commercial arm of the Development Bank of Rwanda. Atlas Mara shares are currently suspended.
Tullow Oil leads the blue-chip fallers Friday, currently down 1.9% after it said a well it was drilling in a potential oil field in Ethiopia had hit water bearing reservoirs with few hydrocarbons.
Go-Ahead Group is the stand-out gainer so far Friday. The FTSE 250 listed transport operator is up nearly 9% on the news that it has been awarded a new rail franchise covering a swathe of south east England. The award means that competitor FirstGroup lost a key franchise, and its shares are down 0.6% Friday.
Saga, the holiday and insurance company that targets the over-fifty market, began conditional trading Friday following London's biggest IPO so far this year. The shares were priced at the bottom of its 185 pence to 245 pence range, giving the company a market capitalisation of GBP2.1 billion. Shares are fractionally higher at 186 pence.
Footwear retailer Shoe Zone has also begun trading Friday. After listing with an IPO price of 160 pence, giving a market capitalisation of GBP80 million, the shares are up 6% at 169.60 pence.
There's very little left in the economic calendar Friday, with just US new home sales data still to come at 1500 BST. Ahead of the US market open, futures trading indicates that stocks on Wall Street are set for a quiet but marginally higher open.
By Jon Darby; jondarby@alliancenews.com; @jondarby100
Copyright 2014 Alliance News Limited. All Rights Reserved.
Tullow Oil (TLW)
Barclays (BARC)
Saga (SAGA)
Shoe Zone (SHOE)