Britain's FTSE 100 share index closed flat on Tuesday, with investors little affected by US economic data, as falls in oil and gas producers cancelled out gains achieved by mining stocks. A key US manufacturing activity index hit its lowest level since August 2005, while consumer confidence was weaker than expected in October.
Traders said the October non-farm payrolls report on Friday will be the key economic indicator of the week, providing the biggest clue to future interest rate direction in the US "Some of these smaller US economic numbers move all over the place," said Dan Bunting, European strategist at Dryden Wealth Management. "For every downside there's an upside of course, and lower consumer confidence also points to less interest rate rises."Generally I'm reasonably happy about the markets which seem to be getting through October without a seasonal depression and are looking ahead to the typically better months of the winter."
The FTSE 100 index closed up 0.04 percent, or 2.4 points, at 6,129.2, reversing a three-day losing streak. "Friday's non-farm payrolls will be seen as key by many and will likely set the mood into the early part of next week," said Jimmy Yates, trader at CMC Markets. "Although ahead of this, the ADP employment survey due tomorrow may offer some early momentum in both London and New York."
Friends Provident topped the FTSE 100 leaderboard, up 6.7 percent after beating forecasts with a 40-percent rise in third-quarter life insurance and pensions sales. Traders said this helped Legal & General add 1.5 percent.
US crude oil prices fell below $58 a barrel, on perceived global economic weakness, as traders doubted whether Opec producers will adhere to an agreement to cut 1.2 million barrels per day from Wednesday. BP fell 1.4 percent and oil explorer Cairn Energy lost 1.6 percent on continued investor disappointment over the details of its Indian IPO.
As base metals edged upwards, miners featured among the gainers, with Lonmin climbing 2.4 percent, Vedanta up 2 percent, and BHP Billiton and Rio Tinto adding about 1 percent. Pharmaceutical firm Shire bounced back from Monday's losses to gain 1.7 percent after brokerages upgraded the drug maker and it announced the start of a new drug trial.
But traders said there had been fresh movement out of AstraZeneca which fell 1.6 percent and extended a week of decline since trials of a new stroke drug were abandoned. "Some people have been playing them for a bounce," said one marketmaker in the sector. "But it seems the bounce isn't due any time soon and so some players are throwing in the towel and exiting positions."
Tobacco company Gallaher Group gained 1.4 percent on talk that Imperial Tobacco's search for acquisitions will focus on the company, traders said. Imperial Tobacco ended up 0.9 percent after it posted a 9-percent rise in annual earnings.
In the financials, Morgan Stanley's acquisition of hedge fund firm FrontPoint Partners, helped Man Group add 2 percent, and ICAP climbed 2.1 percent. Among midcaps, microchip designer ARM Holdings gained 8 percent as traders cited better-than expected results.
Comments
Comments are closed.