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

UK markets closed higher yesterday, with the FTSE 100 index reaching a six week high, as retailers and banks recorded gains. Marks & Spencer, up 6.0%, led the retailers higher, after the company predicted that its profitability for the current year would improve. Banks, Lloyds Banking Group, Barclays and Royal Bank of Scotland Group, gained between 2.7% and 3.9%, on speculation that the Independent Commission on Banking would not recommend a breakup of the big banks. Miners, Kazakhmys and Antofagasta paced gains, helped by higher base metal prices. In the leisure sector, broker upgrades benefited the shares of TUI Travel and Thomas Cook Group.
FTSE 100 rose 0.6% or 34.1 points to 6,041.1. FTSE 250 added 0.4% or 43.7 points to 11,781.4.

UK markets closed lower yesterday, with the FTSE 100 index falling from its six-week closing high, as miners, banks and airlines recorded losses. Miners, Rio Tinto, Xstrata and ENRC, dropped between 0.1% and 1.5%, as base metal prices fell, following interest rates hike in China. Banks, Lloyds Banking Group, Barclays and Royal Bank of Scotland, declined between 0.4% and 1.2%, as risk appetite decreased among investors. Airline stocks, International Consolidated Airlines and easyJet, lost 1.5% and 0.3% respectively, as crude oil prices traded near its 30-month high. National Grid dropped 1.8%, leading utility stocks lower, after HSBC downgraded the stock to “Underweight” from “Neutral”. Among other stocks, Vodafone fell 1.5%, suffering from broker downgrade, while Invensys lost 2.2%, after its peer, Siemens, forecasted slower growth in the second half of the year. FTSE 100 dropped 0.2% to 6,007.1. FTSE 250 fell 0.3% to 11,737.7.

UK markets rallied on Friday, with the FTSE 100 index finishing above the above key psychological level of 6000, as banks and oil related stocks recorded gains. Banks, Barclays, Royal Bank of Scotland Group and Lloyds Banking Group, added between 3.8% and 5.0%, as investors speculated that the Irish government’s plan to increase the capital level of the nation’s lenders would help senior bondholders to avoid taking any losses for now. Oil related stocks, John Wood Group, Tullow Oil and Petrofac, gained between 1.8% and 5.1%, as oil prices rose. Shares of BP, Premier Foods and Victrex benefitted from broker upgrades. Adding to the positive sentiment, US economy added more jobs than forecast in March.
FTSE 100 gained 1.7% or 101.2 points to 6,009.9. FTSE 250 climbed 1.0% or 116.8 points to 11,708.7.

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.

UK markets closed mixed yesterday, as losses in banks were offset by gains in miners. Banks, Barclays, Royal Bank of Scotland and HSBC, lost between 0.3% and 1.3%, as Standard & Poor’s downgraded Greece and Portugal’s debt ratings. Banks were also weighed down, after Italy’s UBI Banca announced a €1 billion capital hike to help repay a government bond, reigniting worries over the European debt crisis. BP dropped 2.2%, affected by a report that the company’s managers might face manslaughter charges, following the Gulf of Mexico oil spill. However, miners, Vedanta Resources, Rio Tinto and Kazakhmys, climbed between 0.1% and 2.9%, on the back of firm base metal prices. Wolseley gained 2.1%, after the company reported a 64% rise in its half-year earnings and reinstated its dividend. FTSE 100 gained 0.5% or 27.7 points to 5,932.2. FTSE 250 fell marginally to close at 11,636.4.