LONDON MARKETS: London Stocks In The Black After Upbeat Retail Sales Data
February 15 2019 - 9:04AM
Dow Jones News
By Barbara Kollmeyer, MarketWatch
Standard Life, Royal Bank of Scotland among the movers
London's main stock index was headed for its third straight week
of gains, rising modestly on Friday after data that showed strength
in retail sales, and continued hopes for progress in U.S.-China
trade talks.
The biggest mover of the day was financial firm Standard Life
Aberdeen PLC, dropping on a share sale.
How are markets performing?
The FTSE 100 rose 0.4% to 7,227.12, after finishing flat on
Thursday. For the week, the index is set to rise 2.2%, marking a
third week of gains.
The pound edged up to $1.2822 from $1.2802 late in New York on
Thursday.
What's driving the markets?
Trade talks between the U.S. and China wrapped up on Friday with
the White House citing progress toward a memorandum of
understanding that could lead to a trade deal
(http://www.marketwatch.com/story/us-china-trade-round-wraps-up-with-progress-toward-expected-memorandum-of-understanding-2019-02-15),
and plans to continue the discussions next week. That news was
helping lift U.S. stock futures and could help Wall Street recover
from Thursday losses triggered by the biggest drop in retail sales
in nine years
(http://www.marketwatch.com/story/retail-sales-sink-12-in-december-to-mark-biggest-drop-since-2009-as-holiday-season-fizzles-out-2019-02-14).
"Negative sentiment concerning trade issues will almost
certainly cast a dark cloud over the natural resources industry and
so it is that London-listed miners and oil stocks are the main
contributors to the FTSE's negative performance on Friday," says
Russ Mould, investment director at AJ Bell.
Meanwhile in the U.K., retail sales rebounded in January
(http://www.marketwatch.com/story/clothing-footwear-sales-boost-uk-retail-sales-2019-02-15)
driven by clothing and footwear and as stores cut their prices.
That comes after a drop in December, which sparked worries about
consumers holding back on spending owing to Brexit worries.
Embattled Prime Minister Theresa May suffered fresh rejection in
parliament
(http://www.marketwatch.com/story/brexit-brief-embattled-prime-minister-dealt-fresh-blow-by-own-mps-2019-02-15)
after pro-Brexit politicians refused to support her strategy in the
withdrawal from the European Union. Meanwhile, data showed
investment in property in the City of London slumped 75% in January
from a year ago, with deals stymied by Brexit worries.
What shares were active?
Standard Life (SLA.LN) shares slumped over 7% after Mitsubishi
UFJ Financial Group Inc(8306.TO) unloaded its entire 5.9% stake
(http://www.marketwatch.com/story/standard-life-falls-on-mitsubishi-share-sale-2019-02-15)
in the asset manager for 349.3 million pounds ($448.0 million).
Retailer Marks & Spencer Group PLC (MKS.LN) was another
loser, dropping 2%, while National Grid PLC (NG.LN) fell around 2%
as well.
Royal Bank of Scotland Group PLC (RBS.LN) (RBS.LN) said Friday
that its 2018 profit rose sharply and it will pay a special
dividend, but warned that Brexit uncertainty is putting its
medium-term cost targets at risk. Shares rose 1% in London.
(END) Dow Jones Newswires
February 15, 2019 08:49 ET (13:49 GMT)
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