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The UK's blue chips are about to show a weekly uptrend, although shares rose on Friday as new corporate reports were released and BHP Billiton PLC has reached an agreement of more than 10 billion US dollars. assets.
Stocks found modest upward support as a result of a decline in the value of the pound sterling as the pound fell after Brexit negotiators from the European Union rejected a key proposal from the US government.
How Markets Move
The FTSE 100
UKX, + 0.48%
is up 0.2% at 7,680.13, driven by the Materials sector. But the industrial sector has punctuated the declensions. On Thursday, the index rose less than 0.1%.
For the week, the index expected an increase of only 2 points. But this small movement would suffice for a third consecutive weekly increase.
The FTSE 100 has been on the rise since it reached its lowest level at 7509.84 a month ago, Bill McNamara wrote in his technical bulletin on Friday.
But "it's hard to escape the impression that the British index has become quite forked as investors keep an eye on the geopolitical situation (dominated recently by tariffs, etc.). ) and another on corporate profits (not to mention the impact of sterling), "he said. "That a degree of paralysis should settle is not entirely surprising.However, a close above 7710 could indicate that bullish sentiment is settling," he said. he said.
The pound
GBPUSD, -0.0992%
fell to $ 1.3095 vs. $ 1.3111 Thursday night in New York
What motivates the market
Investors juggle new series of earnings reports and evaluate agreement between two FTSE 100 constituents – BHP Billiton PLC and BP PLC – with BP reached an agreement to buy most of BHP's US shale assets for 10 , $ 5 billion. The shares of the BP oil producer have the third highest weighting on the benchmark, at 5.6%, according to data from FactSet.
A drop in the pound against the dollar helped pull the FTSE 100 slightly higher. Income generated abroad by multinationals can be supported by the weakness of the pound sterling and, in turn, contribute to higher shares of companies listed on the index.
The pound fell on Thursday after Michel Barnier, the EU's best negotiator. rejected Britain's proposal to levy tariffs on behalf of the EU. It was a major proposal in a post-Brexit customs plan put forward by British Prime Minister Theresa May. Negotiators from the EU and UK will meet again in mid-August to continue working on the exit of the British bloc by the end of March 2019.
Sterling could see other shares against the US dollar product report for the second quarter. The first reading of GDP for the quarter ended June is scheduled for 13:30. London time, or 8:30 am Eastern time.
Read: Euro traders look to Friday's US GDP figures
Check out: Wall Street investors do not remember last report on crucial GDP
Shares in Perspective
shares BHP Billiton Ltd.
BLT, + 3.17%
BHP, -1.03%
climbed 3.6% after the company entered into an agreement to sell most of its US onshore oil and gas unit billion to BP, allowing the world's largest miner by revenue to leave what has been a costly investment. BP's shares decreased by 0.4%.
Shares of Reckitt Benckiser Group PLC
RB., + 7.70%
jumped 6.6% after the maker of Clearasil, Vanish and other brands of consumer goods increased their pre-tax profit 9.5% and increased their growth target.
Pearson PLC
PSON, + 3.64%
grew by 3.5% after the educational publisher supported its forecasts, underlying earnings and incomes rising in the first semester. But the company noted that it is still expecting a drop in its higher education business in the United States due to market pressures.
Rightmove PLC shares
RMV, -2.81%
decreased by 2.2%. The shares were higher after the online real estate company announced that advertisers' revenue growth and online traffic had boosted pre-tax earnings to £ 98.1 million ($ 128.6 million) despite a uncertain housing.
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