UK stocks rise
Monday, 10 August 2009
LONDON, Aug.9 (Bloomberg): UK stocks advanced, wrapping their fourth consecutive weekly gain, after a better-than-expected US unemployment report overshadowed disappointing results from Royal Bank of Scotland Group Plc.
Vodafone Group Plc and BP Plc led gains in the benchmark FTSE 100 Index as the release on jobless Americans bolstered speculation that the recession in the world's largest economy is easing. RBS dropped 12 per cent after posting an unexpected first-half loss and saying impairments will remain "elevated."
The FTSE 100 Index added 41.03, or 0.9 per cent, to 4,731.56 after falling as much as 1.2 per cent. Today's increase took this week's advance to 2.7 per cent. The FTSE All-Share Index rose 0.8 per cent today and Ireland's ISEQ Index increased 0.6 per cent at 4:42 p.m. in Dublin.
The FTSE 100 has rebounded 35 per cent since March 3 amid speculation the worst of a global economic slowdown is past and as companies beat analysts' earnings estimates. US payrolls fell by a less-than-forecast 247,000 last month, after a 443,000 loss in June, the Labor Department said today. The jobless rate dropped to 9.4 per cent from 9.5 per cent.
"Despite the RBS surprise today, wider economic news continues to reassure investors that economies look to be on the upturn with many now starting to wonder how long it will be before we see a test of the 5,000 level by the U.K. index," said David Jones, chief market strategist at IG Index in London.
Vodafone, the world's biggest mobile-phone company, added 2.8 per cent to 127.95 pence. BP, Europe's second-largest oil company, rose 2.1 per cent to 509.75 pence.
RBS plummeted 12 per cent to 46.99 pence, the steepest drop since May 13, after gaining in the previous seven sessions. The bank controlled by the U.K. government posted a first-half loss of 1.04 billion pounds ($1.74 billion) as it set aside 7.52 billion pounds to cover bad loans. Analysts had predicted net income of 1.1 billion-pounds, according to the median of six estimates in a Bloomberg survey.
Vodafone Group Plc and BP Plc led gains in the benchmark FTSE 100 Index as the release on jobless Americans bolstered speculation that the recession in the world's largest economy is easing. RBS dropped 12 per cent after posting an unexpected first-half loss and saying impairments will remain "elevated."
The FTSE 100 Index added 41.03, or 0.9 per cent, to 4,731.56 after falling as much as 1.2 per cent. Today's increase took this week's advance to 2.7 per cent. The FTSE All-Share Index rose 0.8 per cent today and Ireland's ISEQ Index increased 0.6 per cent at 4:42 p.m. in Dublin.
The FTSE 100 has rebounded 35 per cent since March 3 amid speculation the worst of a global economic slowdown is past and as companies beat analysts' earnings estimates. US payrolls fell by a less-than-forecast 247,000 last month, after a 443,000 loss in June, the Labor Department said today. The jobless rate dropped to 9.4 per cent from 9.5 per cent.
"Despite the RBS surprise today, wider economic news continues to reassure investors that economies look to be on the upturn with many now starting to wonder how long it will be before we see a test of the 5,000 level by the U.K. index," said David Jones, chief market strategist at IG Index in London.
Vodafone, the world's biggest mobile-phone company, added 2.8 per cent to 127.95 pence. BP, Europe's second-largest oil company, rose 2.1 per cent to 509.75 pence.
RBS plummeted 12 per cent to 46.99 pence, the steepest drop since May 13, after gaining in the previous seven sessions. The bank controlled by the U.K. government posted a first-half loss of 1.04 billion pounds ($1.74 billion) as it set aside 7.52 billion pounds to cover bad loans. Analysts had predicted net income of 1.1 billion-pounds, according to the median of six estimates in a Bloomberg survey.