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 closed higher yesterday, buoyed by better-than-expected corporate earnings and higher commodity prices. Miners, Antofagasta, Anglo American and Kazakhmys, gained between 3.3% and 5.5%, as base metal prices rallied. Oil producers, Royal Dutch Shell, Tullow Oil and BP, added between 3.0% and 4.1%, as oil prices settled at their highest level in nearly two weeks. Upbeat results from US peer, Intel, benefited shares of ARM Holdings, while household-products firm, Reckitt Benckiser, rose 3.9%, after the company posted earnings which managed to exceed market expectations, helped by growth in emerging markets. Shares of Xstrata and HSBC Holdings paced gains, following positive broker review.
FTSE 100 jumped 2.1% or 125.4 points to 6,022.3. FTSE 250 rallied 1.6% or 181.7 points to 11,756.2.

UK markets closed lower yesterday, with the FTSE 100 index ending its six-day winning streak, as banks and retailers recorded losses. Stocks tumbled in the last minutes of the trading session, after Ireland stated that its four banks require €24 billion in additional capital. Banks, HSBC, Standard Chartered and Royal Bank of Scotland, lost between 0.8% and 2.3%, as risk aversion increased among investors. Retailers, Kingfisher, Next and Marks & Spencer, dropped between 1.2% and 3.3%, after their mid-cap peer, Mothercare, lowered its full-year guidance for gross margins. Investor sentiments were also dampened by dismal consumer confidence data. However, losses were restricted by gains in some miners and oil producers. FTSE 100 declined 0.7% to 5,908.8. FTSE 250 fell 0.7% to 11,592.0.