UPDATE 1-FTSE rebounds but mid-caps nervy as sterling falls


Reuters | London | Updated: 12-11-2019 15:07 IST | Created: 12-11-2019 15:03 IST
UPDATE 1-FTSE rebounds but mid-caps nervy as sterling falls
Image Credit: Flickr
  • Country:
  • United Kingdom

A near 3% rise in shares of the world's biggest credit check firm Experian led a recovery in London blue-chip stocks on Tuesday after falls that tracked a downbeat global mood a day earlier. The FTSE 100 was up 0.2% by 0833 GMT, but the mid-cap index, which rallied on Monday after Brexit Party chief Nigel Farage said suggested he would not fight Conservative-held seats in December's general election, dipped 0.2%.

Weakness in the more domestically-focussed index came as sterling, which had hit a six-month high earlier this week driven by political news, dipped ahead of jobs data. With financial investors still nervous about the outlook for global growth and the outcome of U.S.-China trade talks, traders were holding off on any bigger bullish bets.

Markets rallied last week on signs of a thaw in relations between Washington and Beijing, but those gains were reeled back in on Monday after President Donald Trump cast doubt on the progress of negotiations. Trump is scheduled to discuss U.S. trade policy at the Economic Club of New York later today.

Experian climbed to a near one-month high after it upgraded its organic revenue growth target on the back of strong results in its main North American market, while industrial software company AVEVA added 2.4% after upbeat results. ITV added 2% after the broadcaster said demand for programming, particularly in the United States, would underpin a solid end to the year.

Support services company DCC, however, slid 4% after first-half profit dropped as volumes fell at its business that sells transport fuels and commercial fuels. Industrial distributor Electrocomponents weighed heavily on the mid-cap index, slumping 10% after a 10.4-million-pound writedown in relation to British Steel's liquidation hit first-half earnings.

Discounter B&M European Value Retail also dropped 10%, after it said it was undertaking a review of its German unit to decide the future of the poorly performing business. Manufacturing and research company Oxford Instruments jumped 7% after reporting a rise in revenue and profits for the half-year period.

Among small-caps, Premier Foods leaped 9.4% after its first-half earnings got a boost from the relaunch of Mr. Kipling cakes last year and strong sales of Nissin noodles.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Give Feedback