UK markets closed lower yesterday, with the FTSE 100 index snapping its three day winning streak, as miners and oil producers recorded losses.
The FTSE 100 lost 0.3% to 5,762.1 whilst the FTSE 250 eased 0.1% to 10,420.1.
BHP Billiton, Antofagasta and Rio Tinto paced losses as base metal prices fell. However, Randgold Resources closed 2.2% higher, in line with a rise in gold prices.
Petrofac, Cairn Energy and BG Group declined between 1.9% and 4.1%, as oil prices slipped below $86 per barrel. Petrofac declined further, amid profit booking, following its de-merger which created energy developments business, ‘Enquest’.
British Land dropped 2.7%, as UBS removed the stock from its “most preferred list”, and after it started to trade without rights to the next dividend.
Kingfisher added 2.7%, after a broker raised the target price of the stock to 250.0p, citing a buying opportunity, after profit-taking following its results last month.
Next rose 2.0%, after a broker upgraded the stock to “Buy” from “Hold” citing an annual forecast of 10% dividend hikes and £200 million in share buybacks.
US Market Snapshot, 8 April 2010
US markets finished lower on Wednesday after Kansas City Federal Reserve Bank President, Tom Hoenig, stated that interest rates should not stay low for much longer, giving investors an excuse to take profits.
Sentiment was also soured amid significantly worse than-expected consumer credit figures.
The DJIA declined 0.7% to 10,897.5 as the NASDAQ edged down 0.2% to 2,431.2 and the S&P 500 index closed 0.6% lower, at 1,182.5.
Telecom stocks, Verizon Communications fell 3.1%, while AT&T lost 2.5%, after the stocks traded “ex-dividend”.
Exxon Mobil and Chevron eased 0.8% and 0.7%, as an unexpectedly large increase in US oil inventories dragged down crude oil futures.
Banking stocks, American Express and JPMorgan shed 1.7% and 1.1%, respectively, after the US Federal Reserve reported that consumer credit fell unexpectedly by $11.5 billion in February following an upwardly revised increase of $10.6 billion in January.
Monsanto fell 2.1%, after the company reported quarterly profit below expectations and stated that it would not meet its FY2010 earnings forecast.
Netflix Inc. slumped 4.4%, after a broker downgraded its rating on the stock to ‘Equal-weight’ from ‘Over-weight’.
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'Lower Oil Prices Weigh on Energy Stocks' edited by Tradefair, updated 08-Apr-10
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