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

UK markets closed higher yesterday, as positive broker reviews helped to increase risk appetite among investors. Shares of ITV rallied 4.4%, as Liberum Capital restated its “Buy” advice, citing the recent selloff as “overdone”, while Schroders jumped 3.9%, after HBSC Holdings upgraded the stock to “Overweight” from “Neutral”. Banks, Barclays, Lloyds Banking Group and Royal Bank of Scotland, added between 1.6% and 2.4%, as BofA Merrill Lynch deemed the valuation of the European banks to be at the cheapest level in 18 months. Miners, Rio Tinto, BHP Billiton and Kazakhmys, gained between 0.9% and 3.8%, as base metal prices edged up. Oil producers, Petrofac, Cairn Energy and BG Group, rose between 1.5% and 2.7%, as oil prices gained values. FTSE 100 rose 0.5% or 29.7 points to 5,803.1. FTSE 250 gained 0.7% or 82.0 points to 11,861.4.

UK markets slid on Friday, with the FTSE 100 index witnessing its third consecutive weekly decline, as miners, oil producers and retailers recorded losses. Miners, BHP Billiton, Rio Tinto and Xstrata, fell between 1.9% and 2.3%, as base metal prices eased. Precious metal miners, Fresnillo, Lonmin and Randgold Resources, lost between 0.9% and 5.4%, as silver, platinum and gold prices fell. Oil producers, Petrofac, Tullow Oil and Cairn Energy, declined between 2.0% and 2.8%, as oil prices suffered a selloff. Home Retail Group, down 5.2%, led retailers lower, after the company warned of warning of very dismal electronics sales. Adding to the negative sentiment, UK manufacturing fell more-than-expected in April.
FTSE 100 dropped 1.5% or 90.5 points to 5,765.8. FTSE 250 eased 1.1% or 125.6 points to 11,786.0.

UK Market Snapshot
UK markets slipped yesterday, with the FTSE 100 index failing to extend its gains of five consecutive sessions, as downbeat US economic data dented sentiment among investors. Oil producers, BG Group, Tullow Oil and Petrofac, declined between 1.9% and 3.1%, as oil prices lost ground on demand concerns. Lloyds Banking Group, down 3.8%, led the banking sector lower, as Morgan Stanley painted a gloomy outlook about Lloyds mortgages worth £90 billion. Miners, ENRC, Kazakhmys and Antofagasta, paced declines, as a retreat in US and Chinese manufacturing activity cast doubts about the future metal demand. Shares of National Grid, Vodafone Group, WPP, Intertek Group and Capital Shopping Centres Group came under pressure, after they traded ex-dividend. FTSE 100 dipped 1.0% or 61.4 points to 5,928.6. FTSE 250 dropped 0.4% or 51.0 points to 12,009.8.

UK Market Snapshot
UK markets closed higher yesterday, with the FTSE 100 index rising for the fifth consecutive session and witnessing its longest winning streak in two months, as investors hoped that Greece would receive more aid with approval from the European officials.  Oil producers, Royal Dutch Shell, BP and Tullow Oil, gained between 1.4% and 2.7%, as oil prices inched closer to $103 per barrel. Realty oriented stocks, Hammerson and Taylor Wimpey, paced gains, as Knight Frank LLP stated that luxury homes in central London rose 1.4% in May from the previous month. Upbeat broker comments lifted shares of Experian and Admiral Group, while acquisition of a company and divestment of some assets benefited Serco Group and Wolseley respectively. FTSE 100 gained 0.9% to 5,990.0. FTSE 250 added 0.9% to 12,060.8.