Citywire for Financial Professionals
Stay connected:

View the article online at http://citywire.co.uk/money/article/a327877

Midday Market: subdued ahead of US GDP data

UK markets gave up opening gains as investors grew nervous ahead of US GDP data.

 

UK shares gave up opening gains in midday deals as investors steeled themselves ahead of an onslaught of US data with GDP expected to dominate attention in early deals, with losses expected.

According to spread bettors, IG Index, the Dow is expected to fall around 10 points, having lost more than 200 points yesterday and pulling it into the red for the week.

'Yesterday’s durable goods and initial jobless figures were a kick in the teeth for the markets which were just beginning to show some signs of confidence coming back. We are seeing some short-covering ahead of the big GDP number,' said Martine Slaney, head of derivatives at GFT.

Consensus is expecting today's data to show US output fell 5.4% in December, although some suggested it may have been as seep as 6%.  

'Barring a stellar GDP number however, January looks set to finish well down on the month and this is often regarded as a bearish signal for the rest of the year,' said Slaney 

Chevron and Exxon Mobil are the key focus on the corporate calendar.

Back in the UK, the FTSE 100 was down 33.86 points, or 0.81%, at 4,156.25. The FTSE 250 was 36.73 points lower at 6,236.29.

Property groups got a boost as Morgan Stanley upgraded a slew of UK names and downgraded their European peers.  Land Securities rose 36.5p to 670p, while Hammerson added 21.5p to 409.25p.

Wolseley, having fallen 40%, began to recover some ground. Collins Stewart said it upgraded the shares to 'hold' and said the group has good prospects but needs to grasp the nettle and sell some equity. Shares added 10.9p at 181.7p.

Banks were also continuing to retrace some of the ground lost in the recent rout, with Barclays now trading at 103.9p and Lloyds at 92.8p, although still below January peaks.

Selected high end travel groups also showed some surprising resilience despite downbeat updates from Starwood and Royal Caribbean overnight, as analysts say peers Carnival and Intercontinental Hotels Groups are well placed to weather the economic storm. The two UK groups were up 1% and 0.47% respectively. 

Rio Tinto was up 65p at £16.15 after it said it had sold some potash assets, reassuring some market watchers that it may not have to do a rights issue.

Sign in / register to view full article on one page

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire guide to investment trusts

In association with Aberdeen Asset Management

Henderson Global Investors: 2014 looks set to be another strong year for UK commercial property


Andrew Friend, acting co-manager*, and Marcus Langlands Pearse, co-manager of the Henderson UK Property Unit Trust (HUKPUT), provide an overview of the key risks and opportunities for the UK commercial property market.

More about this:

Look up the shares

  • Land Securities Group PLC (LAND)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Hammerson PLC (HMSO)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Wolseley PLC (WOS)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Barclays PLC (BARC)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Lloyds TSB Group PLC (LLOY)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Carnival PLC (CCL)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • InterContinental Hotels Group (IHG)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Rio Tinto PLC (RIO)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Antofagasta PLC (ANTO)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • BHP Billiton PLC (BLT)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Xstrata PLC (XTA)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.

Sorry, this link is not
quite ready yet