Greg Secker – U.K. Market update brought to you by Traders University

UK markets closed higher yesterday, with the FTSE 100 index rising for the sixth consecutive session, as industrial stocks and some miners recorded gains. Among industrial stocks, Rolls Royce rose 1.7%, after HSBC upgraded the stock to “Overweight”, while IMI and Weir Group advanced 1.9% and 1.2% respectively, as RBC Capital Markets took a positive stance on the sector. Among miners, Vedanta Resources, BHP Billiton and Rio Tinto gained between 1.0% and 3.4%, after Morgan Stanley reiterated its “Overweight” rating on Vedanta Resources. Among other stocks, Centrica rose 2.5%, amid talks that its Spanish peer, Iberdrola, was set to make a bid for the company, while tobacco stocks, British American Tobacco and Imperial Tobacco Group, also paced gains. However, gains were restricted by losses in retailers. FTSE 100 gained 0.3% to 5,948.3. FTSE 250 added 0.3% to 11,676.4.

UK markets closed mixed yesterday, as losses in banks were offset by gains in miners. Banks, Barclays, Royal Bank of Scotland and HSBC, lost between 0.3% and 1.3%, as Standard & Poor’s downgraded Greece and Portugal’s debt ratings. Banks were also weighed down, after Italy’s UBI Banca announced a €1 billion capital hike to help repay a government bond, reigniting worries over the European debt crisis. BP dropped 2.2%, affected by a report that the company’s managers might face manslaughter charges, following the Gulf of Mexico oil spill. However, miners, Vedanta Resources, Rio Tinto and Kazakhmys, climbed between 0.1% and 2.9%, on the back of firm base metal prices. Wolseley gained 2.1%, after the company reported a 64% rise in its half-year earnings and reinstated its dividend. FTSE 100 gained 0.5% or 27.7 points to 5,932.2. FTSE 250 fell marginally to close at 11,636.4.

UK markets closed higher on Friday, with the FTSE 100 index registering its biggest weekly gain since November 2010, as consumer related stocks and oil producers recorded gains. Consumer related stocks, Reckitt Benckiser Group, SABMiller and Unilever, climbed between 0.9% and 3.1%, after BofA Merrill Lynch upgraded Reckitt Benckiser Group to “Buy” from “Neutral”. Oil producers, Royal Dutch Shell – B, Petrofac and BP, rose between 0.6% and 1.5%, on the back of firm oil prices. Among other stocks, Invensys advanced 3.5%, rebounding from its previous session losses, while Sainsbury added 1.5%, as Natixis upgraded the stock to “Neutral” from “Reduce”. However, gains were restricted by losses in retailers and some of miners. FTSE 100 gained 0.3% to 5,900.8. FTSE 250 added 0.2% to 11,629.3.

UK markets closed higher yesterday, led by gains in retailers, miners and oil producers. Retailers, Kingfisher, Next and WM Morrison Supermarkets, climbed between 0.6% and 7.2%, after Kingfisher and Next reported their earnings updates that surpassed market expectations. Retail stocks also rose after Deutsche Bank took a positive stance on the sector. Miners, Rio Tinto, Antofagasta and ENRC, advanced between 1.3% and 2.5%, amid hopes that reconstruction opportunities in Japan would spur demand for raw materials. Banks also traded higher, with Barclays up 1.3%, after Credit Suisse reiterated its “Outperform” rating on the stock. FTSE 100 gained 1.5% or 85.0 points to 5,880.9. FTSE 250 added 1.4% or 158.2 points to 11,605.5.