Wall Street rally lifts UK equities

Tue: A strong start on Wall Street helped lift UK equities as a rate hike by the Fed looked less likely on the back of weak US retail sales and a steeper fall in US manufacturing than expected.

The UK consumer price index of inflation dropped to 0% year-on-year in August, as anticipated by analysts, from 0.1% in July, the Office for National Statistics revealed. Core inflation, which excludes food and energy, fell to 1% from 1.2%.

The Bank of England, which is targeting inflation of 2%, expects inflation to remain around zero throughout autumn before increasing slowly.

Weir Group gained as Blackrock called a bottom in the shares, which are at a five-year low, increasing its holding above 5% via a contract for difference.

Prudential rallied as it announced a pair of reassuring senior appointments to its board, with Lord Turner of Ecchinswell, who is currently chairman of the Institute for New Economic Thinking, and insurance veteran David Law both taking non-executive directorships with immediate effect.

Glencore slid after saying the company operating the Katanga mining project in the Democratic Republic of Congo will suspend production at the site for 18 months. Katanga Mining confirmed the suspension, adding it will continue to carry out the $880m investment into processing plant upgrades at the project, in which Glencore owns a 74% stake.

Kingfisher dropped as it posted a 2.3% fall in pre-tax profits as like-for-like sales grew 2% at constant currencies.

Vodafone declined after reports that Liberty Global could walk away from a possible asset swap or merger after making little progress. Some analysts went to far as to call for CEO Vittorio Colao to step down.

The FTSE100 index closed up 1.06% at 6149.19.



Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.