11th Nov 2013 10:47
LONDON (Alliance News) - London's major stock indices are trading marginally higher Monday. Having opened strongly, buoyed by a raft of solid Chinese economic data overnight, indices have slipped back from early highs in a morning with few broad drivers, although there are a number of standout stock movers.
By mid-morning Monday the FTSE 100 is up 0.1% at 6,875.62, the FTSE 250 is up 0.3% at 15,393.53, and the AIM All-Share is up 0.2% at 816.65.
The London market had opened strongly, with the FTSE 100 up more than 0.5% on continued positivity from the strong US employment report on Friday. However, with an economic calendar empty of major releases and the US Treasury market closed by Veterans Day, the overall market has little to go on, and equity indices have slipped back close to flat.
Non-life insurance is the heaviest falling sector, dragged down almost single-handedly by RSA Insurance Group. RSA shares have plummeted more than 10% after the insurer warned that problems within its Irish business will result in its full-year operating profits being GBP70 million lower than the market had expected. This latest statement, issued after the market close Friday, comes hot on the heels of the company's interim management statement last Tuesday in which RSA warned that it expects its full-year weather losses to be "materially above planning assumptions".
The weekend news that BT has won the exclusive rights to televise all the Champions League and Europa League football matches in the UK for three years from the 2015/16 season has caused a stir in the media sector, which is down 1.4%.
BSkyB and ITV, which shared the rights in recent years, are down 10% and 1.1% respectively, with the consensus clearly that BSkyB has the most to lose from the new deal. BT will pay almost GBP300 million per year for the rights, which is GBP850,000 per match, much higher than BSkyB and ITV are currently paying. This has led to charges by BSkyB and others that BT overpaid. After starting lower, BT shares now trade 0.4% higher.
With the US Treasury market closed and a light data calendar, the forex markets are quiet. The pound and the euro are both marginally higher against the greenback, quoted at USD1.6015 and USD1.3402 respectively.
Gold has risen slightly over the course of the morning, at USD1,284.20 per ounce, although still down following the strong US employment report last week. Brent oil is higher at USD105.75 per barrel.
By Jon Darby; [email protected]; @jondarby100
Copyright © 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
RSA.LBTITV