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 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 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 higher yesterday, as retailers, miners and oil producers recorded gains. Among retailers, shares of Burberry jumped 6.0%, after the company’s fiscal fourth-quarter sales surpassed market expectations, while Marks & Spencer benefited from an upgrade by Citigroup. However, Tesco, down 1.6%, bucked the trend, after the company warned that its domestic market would remain “challenging”. Miners, Anglo American, Xstrata and Vedanta Resources, gained between 1.5% and 2.4%, as base metal prices increased. Oil producers, Cairn Energy, Petrofac and Antofagasta, added between 1.0% and 1.3%, as oil prices advanced.
FTSE 100 rose 0.5% or 26.8 points to close at 5,896.9. FTSE 250 climbed 0.7% or 83.8 points to 11,574.5.

UK markets closed higher yesterday, led by gains in retailers, miners and oil producers. Retailers, Kingfisher, Next and WM Morrison Supermarkets, climbed between 0.6% and 7.2%, after Kingfisher and Next reported their earnings updates that surpassed market expectations. Retail stocks also rose after Deutsche Bank took a positive stance on the sector. Miners, Rio Tinto, Antofagasta and ENRC, advanced between 1.3% and 2.5%, amid hopes that reconstruction opportunities in Japan would spur demand for raw materials. Banks also traded higher, with Barclays up 1.3%, after Credit Suisse reiterated its “Outperform” rating on the stock. FTSE 100 gained 1.5% or 85.0 points to 5,880.9. FTSE 250 added 1.4% or 158.2 points to 11,605.5.