LONDON MARKETS: FTSE 100 Slips As Wait-and-see Mode Sets In Before Trump Takes Office
20 Janeiro 2017 - 7:26AM
Dow Jones News
By Carla Mozee, MarketWatch
Blue chips on track to break string of weekly gains
U.K. stocks edged lower Friday, on course to break a string of
weekly wins, with investors waiting to hear what Donald Trump may
say about his economic plans as he's sworn in as the U.S.'s 45th
president.
The FTSE 100 was off 0.1% at 7,204.91, with only the telecom,
utility and oil and gas sectors advancing. On Thursday, the
benchmark lost 0.5%.
(http://www.marketwatch.com/story/ftse-100-loses-ground-weighed-by-housing-shares-royal-mail-2017-01-19)
Caution appeared to be setting in ahead of Trump's inauguration
in Washington, D.C. The swearing-in ceremony will begin as London
trade closes, at 4:30 p.m. London time, or 11:30 a.m. Eastern Time.
Read:What time is the inauguration?
(http://www.marketwatch.com/story/when-is-the-inauguration-2017-01-17)
Investors worldwide will look for "confirmation that he plans to
follow through with his preelection rhetoric and push massive
fiscal stimulus through Congress, as well as easing regulatory
burdens," which could reignite the dollar's postelection rally,
Charalambos Pissouros, senior analyst at IronFX Global Ltd., said
in a note.
Banking shares globally have been among the beneficiaries of a
postelection rally, on expectations the industry may enjoy a more
relaxed regulatory environment during a Trump administration.
In London trade Friday, Lloyds Banking Group (LLOY.LN) (LLOY.LN)
shares were up 1.1%, and Royal Bank of Scotland PLC (RBS.LN)
(RBS.LN) was higher by 1%. RBS owns U.S.-based lender NatWest. But
shares of Barclays PLC (BCS) (BCS) were off 0.1%.
For the week, the FTSE 100 is on track for fall of 1.9%. That
would mark the index's first decline in six weeks. On Monday, the
benchmark broke a 14-day winning streak
(http://www.marketwatch.com/story/ftse-100-notches-small-gain-as-pound-slides-on-hard-brexit-fears-2017-01-16),
the longest on record for British blue chips. That string of gains
also contained 12 consecutive all-time closing highs.
Part of the FTSE's 100 loss this week stemmed from Tuesday's
rally in the pound. During trading that day, sterling surged nearly
3% against the dollar after U.K. Prime Minister Theresa May said
terms of the final Brexit deal negotiated between U.K. and EU
officials would be put to a vote in the British parliament.
On Friday, the pound was buying $1.2338, up from $1.2299 late
Thursday. It was on track for a weekly gain of more than 1% against
the dollar.
If Trump during his inauguration speech "avoids the crucial
topics of fiscal and regulatory reforms once again, or if his
stance towards them seems less confident than preelection, the
dollar could resume its downward correction, as investors become
increasingly impatient regarding the absence of details on the
nation's fiscal direction," Pissouros said.
Data: A reading on U.K. retail sales will be released at 9:30
a.m. London time by the Office for National Statistics. Sales are
expected to have jumped 7.3% in December on a year-over-year basis.
In November, sales climbed 5.9%.
(END) Dow Jones Newswires
January 20, 2017 04:11 ET (09:11 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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