9th Sep 2013 10:29
LONDON (Alliance News) - UK equities trade mixed Monday, with small caps out-performing large, on a day with a very light data calender. By late morning, the FTSE 100 is down 0.4%, the FTSE 250 is flat, and the AIM All-Share is up 0.2%.
The FTSE 100 had opened slightly higher, following gains made in Asian markets on the back of news that Tokyo has secured the 2020 Olympic Games and good Chinese growth forecasts. The Organization for Economic Cooperation and Development said it expects Chinese economic growth to pick up to 7.4% by the final quarter after a slowdown in the first half of 2013.
At a press conference in London Monday morning, UK foreign secretary William Hague and US Secretary of State John Kerry both reaffirmed the "special relationship" between the two countries before Kerry went on to make the case for military intervention in Syria. Kerry said that if there was no intervention, Syria would use chemical weapons again.
The comments come ahead of an expected TV address to US citizens on Tuesday by US President Barack Obama to make the case for intervention.
UK equities have slid since the press conference. Oil and gas producers are posting the biggest losses as traders continue to be nervous over exactly what action will be taken in Syria and how it will effect oil supply. BG Group is the biggest blue-chip loser, down 4.8% after releasing a disappointing trading update. Personal goods are the biggest gainers, the sector up 1.59%, led by Burberry, after HSBC increased its price target for the luxury clothing brand to 1,900p from 1,750p.
A quiet day for data Thursday allows the pound to maintain its break above 1.56 against the dollar. Cable has made a high so far at 1.5676. Gold at USD1,386 per oz and Brent Oil at USD115.45 per barrel are stable, both slightly softer from highs last week.
With no major European data releases in the calendar, it may be a quiet afternoon. UK stock markets will prefer to react to news flow, with an eye on the developing US debate on military action in the Middle East.
By Jon Darby; [email protected]; @jondarby100
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