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 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 dipped sharply yesterday, with the FTSE 100 index falling the most in five months, as persisting worries over European sovereign debt and a US credit rating outlook downgrade by S&P’s sparked a selloff. Miners, Antofagasta, Anglo American and Kazakhmys, lost between 3.8% and 5.0%, as base metal prices slipped. Possible Greek debt default fears weighed on banks, Barclays, Lloyds Banking Group and Royal Bank of Scotland Group, all down between 2.0% and 3.6%. Resolution, down 4.8%, led insurers lower, after UBS removed the stock off its “buy” list and cut the company’s earnings forecasts by about 30%.
FTSE 100 declined 2.1% or 125.9 points to close at 5,870.1. FTSE 250 eased 1.6% or 188.5 points to 11,490.8.