🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

FTSE outperforms in U.S. data gloom

Published 07/08/2015, 17:26
© Reuters. A man walks past the London Stock Exchange in the City of London
UK100
-
LBTYA
-
TPK
-
WMH
-
ITV
-
FTNMX551030
-
GLEN
-
RYE
-

By Liisa Tuhkanen

LONDON (Reuters) - The FTSE 100 fell on Friday, weighed down by sharp drops in broadcaster ITV (L:ITV) and bookmaker William Hill (L:WMH), though it outperformed European peers on a day when U.S. jobs data was deemed to herald a Fed rate rise.

Anticipation of a U.S. hike has stoked market volatility this year. UK markets got a lift earlier this week after central bank data pointed to a hike a lttle further out than previously expected.

The blue-chip FTSE 100 index (FTSE) closed down 0.4 percent, with pan-European equities down around 0.9 percent. Euro zone stocks were also hit by disappointing German data.

Shares in ITV fell 3.4 percent a day after weak earnings reports from U.S. media dragged the sector to its worst two-day loss since the financial crisis.

Several European media companies slipped, and ITV stock was hit particularly hard just days after Liberty (O:LBTYA) said it still had no intention of taking over Britain's biggest free-to-air commercial TV firm.

However, Liberum analysts called it "a good buying opportunity," saying in a note that the U.S. TV market is "very different from UK/Europe – channels show a lot more advertising ... giving consumers a big incentive to switch off, especially given the high cable fees."

Britain's largest bookmaker William Hill fell more than 6 percent after posting a 12 percent fall in first-half operating profit, weighed down by increased machine games duty and a new tax on bets made online by its UK-based customers.

The group also said it had acquired 29.4 percent of NeoGames, an online lottery software and services provider, for $25 million.

"William Hill results highlight the speargun pressure created by the additional cost resulting from the Point of Consumption tax," said Eric Opara, analyst at Edison Investment Research.

"We would expect smaller players to suffer disproportionately enabling bigger players with the right products to increase their market share, thus mitigating the impact of the additional tax cost somewhat."

Among the other main fallers, Travis Perkins (L:TPK) dropped 2 percent after a target price cut from Panmure.

Among small caps, UK Mail Group (L:UKM) plummeted 14 percent after warning that its full-year profit would be materially below market expectations due to additional operating costs from the transition to its new automated hub near Coventry.

Glencore (L:GLEN) rose nearly 2 percent after South Africa's mines minister on Friday conditionally withdrew his suspension of the licence for its Optimum Coal Mine.

© Reuters. A man walks past the London Stock Exchange in the City of London

Other miners also recovered from the lows seen on Thursday. The FT350 Mining index (FTNMX1770) was up more than 1 percent after falling 1.2 percent in the previous session.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.