Weak US data hampers FTSE recovery
Market heavyweights AstraZeneca and embattled BP made steady gains today, but weak US jobs data limited the recovery on the wider FTSE 100 Index.
The FTSE 100 made subdued progress as survey data showed far lower than expected jobs growth among US private employers in June.
The top flight – about to complete its worst quarter since the start of last year – closed 2.7 points higher at 4916.9 in a lacklustre fight back following yesterday’s 3% plunge.
Worries about the imminent repayment of loans made to banks by the European Central Bank have been impacting shares.
But the ECB later said it had lent a smaller than expected £107bn (€130bn) in three-month money to banks refinancing the loans, easing balance sheet fears.
In currency news, the pound’s recent strong run stalled, with sterling down 0.6% to just under 150 dollars and off 1.5% below 1.22 euros.
The Footsie risers were led by AstraZeneca after the pharmaceuticals giant won a three-year battle over its Crestor cholesterol drug which will keep cheap rivals at bay in the US until 2016.
Shares jumped 222p to 3169p, while fellow drugs giant GlaxoSmithKline added 20p to 1143p.
BP was second on the risers board as broker speculation about the prospect of a bid from ExxonMobil once the Gulf of Mexico situation has stabilised meant the beleaguered UK company pulled clear of its recent 14-year lows.
Shares were 5% higher, up 16p to 318.9p, during a generally better session for commodity-based stocks. Other risers in the oil sector included Cairn Energy, which lifted 6.7p to 414.9p.
Barclays led a strong session for banks after it set out new targets for its UK retail banking and Barclaycard division over the next three years.
The plans, which were unveiled at the start of an investor briefing, included a £1bn (€1.22bn) spend on improving customer service over four years. Shares jumped 3.2p to 270.6p.
The biggest Footsie risers were AstraZeneca up 222p at 3169p, BP ahead 16p at 318.9p, Essar Energy up 17.6p at 475.2p and Petrofac up 26p at 1186p.
The biggest Footsie fallers were Man Group down 17.8p at 223.3p, InterContinental Hotels off 42p at 1063p, Kazakhmys down 38p at 994p and Eurasian Natural Resources down 32.5p at 861p.
