UK Market News

Friday July 3, 11:55 AM
UK at a Glance-Miners, oil majors pull FTSE lower by midday

By Farah Master LONDON, July 3 (Reuters) - Britain's leading share index was 0.2 percent lower by midday on Friday after poor U.S. jobs data in the previous session mired market sentiment and lower commodity prices weighed on miners and oil majors. By 1031 GMT the FTSE 100 index was down 6.13 points at 4,228.14 in subdued trading with U.S. markets closed on Friday for the Independence Day holiday. 'It's really, really quiet. The people we probably would have seen in this market looking to buy from yesterday's lows probably would have been here if it had not been for those non-farms,' said Joshua Raymond, market strategist at City Index. The British blue-chip index ended 106.44 points lower on Thursday at 4,234.27, sliding with Wall Street after U.S. data showed non-farm payrolls fell more than expected in June. 'I think the non-farms have scared away anyone who was looking to trade today. Historically when the U.S. is closed for independence day, Europe tends to be really muted. That is pretty much what we are seeing already and I don't think that is going to change this afternoon,' Raymond said Miners were the biggest drag on the index, as concern over demand for metals on economic recovery uncertainties pushed prices lower. Antofagasta (LSE: ANTO.L - news) , Anglo American (LSE: AAL.L - news) , BHP Billiton (LSE: BLT.L - news) , Xstrata (LSE: XTA.L - news) , Vedanta Resources (LSE: VED.L - news) , and Rio Tinto lost 0.9-2.8 percent. Underwriters to Rio Tinto (LSE: RIO.L - news) 's rights issue sold the Australian 'rump' at A$48.50 each, a 6.3 percent discount to Rio's last traded price, Rio said in a statement on Friday. Oil majors fell as crude stayed below $67 a barrel after a nearly 4 percent fall on Thursday with the high jobless numbers across the United States and Europe reviving concerns about the global economic outlook and its impact on energy demand. BP, Royal Dutch Shell (Amsterdam: RDSA.AS - news) , BG Group (LSE: BG.L - news) , Cairn Energy (Virt-X: CNE1.VX - news) , and Tullow Oil (LSE: TLW.L - news) lost 0.3 to 1.4 percent. Elsewhere, Balfour Beatty (LSE: BBY.L - news) was down 2.2 percent after the infrastructure company's in-line trading update failed to inspire. MEDIA UPGRADE Media stocks were higher, led by Reed Elsevier (Amsterdam: 273044.AS - news) after Credit Suisse raised its rating on the European media sector to 'overweight' from 'underweight,' and said the sector has significantly underperformed the market and valuations are now at record lows. BSkyB (LSE: BSY.L - news) was 0.8 percent higher, while WPP (LSE: WPP.L - news) was up 1.3 percent. Banks also gained, rebounding after falls on Thursday. Royal Bank of Scotland (LSE: RBS.L - news) added 1.1 percent, with Barclays (LSE: BARC.L - news) , HSBC (LSE: HSBA.L - news) and Lloyds Banking Group (LSE: LLOY.L - news) rising 0.9-1.2 percent Defensive issues also found support as investors' risk appetite faded following the U.S. jobs disappointment, with tobacco and drug issues moving higher. GlaxoSmithKline (LSE: GSK.L - news) , AstraZeneca (LSE: AZN.L - news) , and Shire (LSE: GB00B0KQX869.L - news) rose 0.2-0.7 percent, while British American Tobacco (LSE: BATS.L - news) and Imperial Tobacco (LSE: IMT.L - news) added 0.8 and 0.3 percent, respectively. And British Airways took on 1.3 percent ahead of the airline's June passenger traffic numbers, due at 1315 GMT. There was little market reaction to data showing a slowing in the recovery in the British service sector in June, with the CIPS/Markit UK services PMI activity index reading of 51.6 below May's 51.7 reading and the forecast of 52.0. (Reporting by Farah Master; Editing by Dan Lalor) Keywords: MARKETS BRITAIN STOCKS