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

UK markets closed lower on Friday, with the FTSE 100 index closing below the psychologically important level of 6,000, after the US economy added fewer jobs in June than market expectations, raising concerns over the pace of the economic recovery. Miners, Antofagasta, Kazakhmys and Rio Tinto, dropped between 2.0% and 4.5%, in line with a fall in base metal prices. Oil producers, Essar Energy, BG Group and Royal Dutch Shell – B, lost between 0.6% and 4.0%, as crude oil prices slipped. Banks, Lloyds Banking Group, Royal Bank of Scotland and HSBC, declined between 1.0% and 3.5%, as risk appetite decreased among investors. Among other stocks, British Sky Broadcasting dipped 7.6%, after the UK government indicated that it would not give quick approval to News Corp’s takeover bid. FTSE 100 dropped 1.1% or 64.0 points to 5,990.6. FTSE 250 fell 0.8% or 93.6 points to 12,074.3.

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.