22nd Nov 2013 10:36
LONDON (Alliance News) - UK stocks are trading mixed again Friday. With no UK data in the calendar and a light day of corporate releases, the FTSE 100 looks set to close out the week within the tightest Monday-to-Friday range in many months.
By mid-morning the FTSE 100 is down 0.1% at 6,676.30, the FTSE 250 is up 0.2% at 15,181.15, and the AIM All-Share is up 0.3% at 815.10. The FTSE 100 opened Monday at 6,693.44 points.
The German IFO, a closely watched index of business sentiment, came in at 109.3 for November, rising from 107.4 in October and beating economist expectations of 107.7. German third-quarter GDP, also released this morning, gained 0.3% in the third quarter, a slowdown in growth from the 0.7% seen in the second-quarter, but in line with expectations.
If a now familiar pattern, data released from elsewhere in Europe disappointed. Italian retail sales showed a monthly decline of 0.3%, from a flat reading previously.
Shrugging off the problems in Italy, the market sent the euro higher against other majors on the strong German readings, recording a high against the greenback of USD1.3527. With the calendar empty of UK data, the pound is almost unchanged against the dollar during Fridays session, currently quoted at USD1.62.
With the focus so heavily on the tapering of asset purchased by the federal reserve, the market appears to be taking any opportunity to send the euro higher. "Currency strength will exhibit itself at the point of least resistance and we maintain that until Fed tapering is upon us, that EUR/USD will remain well supported in spite of the dovish threats of the ECB," says Rabobank Senior FX Strategist Jane Foley.
Outside of the forex market, equity indices remain very much range bound. Even though the US DJIA closed at a new record high last night, the lack of UK drivers indicates a quiet afternoon ahead.
Within individual equities, Whitbread is the stand out blue chip winner, the hotel and coffee-shop group is up 3.1% after receiving an upgrade from JPMorgan to Overweight from Neutral. Analysts see the uptrend in UK economic growth as particularly beneficial to Whitbread's Premier Inn, "given its skew to business travellers".
In a light volume day, Tui Travel leads the FTSE 100 fallers. The travel group is down 5.0% following the news that Norwegian Shipping magnate John Fredriksen has sold his entire 5.4% stake at 366p, using the proceeds to increase his stake in its German parent company TUI AG, which owns 56% of Tui Travel.
Very few drivers stand in the way of a lackluster close for the UK market. Data-wise, just Canadian inflation and retail sales data are scheduled for afternoon release, at 1330 GMT.
There is another Fed member speaking at 1340 GMT which may provide interest. This time it's the turn of Kansas City Fed President Esther George who is generally seen to be on the pro-taper side of the asset-purchase debate. An index of manufacturing activity from the Kansas Fed is also due for release at 1600 GMT.
By Jon Darby; [email protected]; @jondarby100
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