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

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.

UK markets dipped sharply yesterday, with the FTSE 100 index falling to its lowest level in two months, as miners, oil producers and travel related stocks suffered a selloff. Miners, Rio Tinto, BHP Billiton and Xstrata, lost between 2.0% and 2.7%, as base metal prices fell. Oil producers, BG Group, Tullow Oil and Essar Energy, declined between 2.5% and 3.7%, as oil prices recorded a sharp drop. Travel & tourism related stocks, International Consolidated Airlines Group and TUI Travel, paced declines, as UK’s weather agency warned that the ash resulting from the volcanic eruption could threaten trans-Atlantic air traffic and reach UK soon. FTSE 100 declined 1.9% to 5,835.9. FTSE 250 eased 1.6% to 11,795.7.

UK markets closed lower yesterday, with the FTSE 100 index suffering another day of heavy losses, as falling commodity prices coupled with dismal results from Lloyds Banking Group and Schroders triggered a selloff among investors. Miners, Vedanta Resource, Kazakhmys and Xstrata, declined between 2.6% and 4.3%, as base metal prices fell. Oil producers, Essar Energy, BG Group and Tullow Oil, fell between 3.2% and 5.2%, as oil prices witnessed its largest one-day percentage decline since 20 April, 2009. Shares of Lloyds Banking Group tumbled 8.0%, after the bank swung to a first quarter loss, while Schroders slumped 9.2%, after its quarterly earnings came below market expectations.
FTSE 100 eased 1.1% or 64.1 points to 5,920.0. FTSE 250 dropped 0.5% or 63.4 points to 11,845.7.

UK markets closed higher yesterday, as a rise in risk aversion prompted investors to load up defensive shares such as British American Tobacco, Imperial Tobacco and Reckitt Benckiser, all up between 2.0% and 2.9%. MAN Group, up 3.3%, featured among the top gainers in the FTSE 100 index, after the company managed to raise $1.5 billion from Japanese investors in spite of the March Japanese earthquake. Other money managers such as Schroders and ICAP also benefited from the positive MAN update. Travel related stocks, TUI Travel and Carnival, paced gains, on hopes that the fall in oil prices would ease the pressure on their operating margins. However, gains were limited, as index heavyweight miners, BHP Billiton, Rio Tinto and Xstrata recorded losses, following a slump in precious metal prices and loss of risk appetite.
FTSE 100 gained 0.2% or 13.0 points to 6,082.9. FTSE 250 rose marginally to 12,014.8.