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

UK markets closed lower yesterday, as escalating turmoil in the Middle East and North Africa inflated crude oil prices above $100 per barrel, raising concerns over the economic recovery. Miners, Anglo American, Rio Tinto and ENRC, dropped between 0.1% and 1.2%, as base metal prices fell. Oil producers, Petrofac, Essar Energy and BG group, lost between 0.1% and 2.2%, as supply worries weighed on the sector. Retailers also paced declines, after various brokers took a negative stance on the sector. Among other stocks, Whitbread slipped 5.2%, after reporting slowing sales growth at its Premier Inn chain, while RSA Insurance and Diageo paced declines, after going ex-dividend. However, losses were restricted by gains in some banks, with Standard Chartered up 4.3%, following its robust earnings update. FTSE 100 dropped 0.4% to 5,914.9. FTSE 250 fell 0.3 % to 11,543.4.

UK markets closed lower yesterday, with the FTSE 100 index declining for the fourth consecutive session, amid mounting worries that the political unrest in Libya could spread to other Middle East and North Africa region, impacting global economic growth. Miners, Antofagasta, Kazakhmys and Vedanta Resource, dipped between 2.9% and 5.1%, in line with a fall in base metal prices. Banks, Standard Chartered, Royal Bank of Scotland and HSBC, declined between 0.3% and 1.4%, as risk aversion increased among investors. Travel and cruise operator stocks, Carnival, Easyjet and International Consolidated Airlines Group, lost between 1.6% and 4.2%, amid concerns over rising crude oil prices. Shares of Logica and Rexam paced declines, despite reporting higher earnings for the full year.
FTSE 100 dropped 1.2% or 73.2 points to 5,923.5. FTSE 250 declined 1.1% or 130.5 points to 11,521.9.

UK markets closed lower yesterday, on concerns that increasing turbulence in Libya would push oil prices higher and hamper economic growth. Airline stocks, easyJet and International Consolidated Airlines Group, paced declines, on fears that rising oil prices would weigh on the profitability of the firms. Worries over travel disruption hit the tourism sector, with shares of Thomas Cook Group and Carnival, down 1.8% and 1.7% respectively. Defence related stocks, BAE Systems and Rolls-Royce Group, lost 4.3% and 1.5% respectively, amid worries about the impact of deeper cuts to UK spending, after a report from the UK’s Public Accounts Committee highlighted that financial mismanagement had created a £38 billion hole in the UK Ministry of Defence’s budget.

UK markets closed marginally higher yesterday, as losses in miners and oil producers were offset by strong gains in banks and insurers. Banks, Royal Bank of Scotland Group, Lloyds Banking Group and Standard Chartered, climbed between 0.2% and 3.8%, boosted by upbeat broker comments and optimism on further robust earnings in the sector. Insurers, Resolution, RSA Insurance and Standard Life, gained between 0.8% and 5.0%, in line with a rise in the equity market. However, miners, Xstrata, Kazakhmys and Rio Tinto, lost between 0.5% and 2.5%, as copper price touched a three-week intraday low. Oil producers also paced declines, despite a rise in crude oil prices. FTSE 100 rose slightly to 6,087.4. FTSE 250 added 0.2% to 11,827.8.