Market Report

25th September 2017 at 5:20 pm

UK and European stocks closed flat as investors digested election results out of Germany, where the nationalist Alternative for Germany (AfD) won parliamentary seats for the first time.

US stocks traded lower as declines in technology stocks more than offset gains in energy stocks.

The US dollar rose broadly, benefiting from elections in Germany and New Zealand that left unclear outcomes about the future of governance.

Brent crude oil prices rose to their highest in nearly nine months after major producers said at a meeting in Vienna the global market was well on its way towards rebalancing.

Gold eased as the prospect of a fractured parliament in Germany following Chancellor Angela Merkel’s less than resounding election victory over the weekend knocked the euro lower.

In company news, Anglo American also slipped during the session after Deutsche Bank downgraded its recommendation to ‘sell’ from ‘hold’ in response to strong performance in the last three months.

Banks were lower, with Lloyds down the most, followed by Standard Chartered, HSBC, Barclays and RBS, as the Bank of England called for increased capital buffers and warned that risks from rising debt are building in the UK and overseas based on overconfidence that recent benign conditions will continue.

Broadcaster ITV led a modest group of risers on the blue chip benchmarket after Liberum raised its advertising revenue forecasts, while it also increased the company’s target price to 33p from 320p. ITV was up over 2% in late trading.

In case you missed it – news from this morning

Pennon, the water and waste group, said half year results remained “on track to deliver in line” for both businesses and it felt well placed for the rest of the year. After agreeing initial terms over the cancellation of the Greater Manchester waste disposal PFI contract, Pennon said “progress is being made on the final agreements”.
 

Markets

At the close
FTSE 100 7,301 (-0.13%)
FTSE 250 19,566 +0.25%
DAX 12,594 +0.02%

At 17:12
Dow Jones IA 22,253 (-0.43%)
S&P 500 2,490 (-0.46%)
NASDAQ 6,357 (-1.09%)

 

UK Government Bond 
UK 10-YR Yield 1.335 +0.20%
 

Exchange Rates
GBP/USD $1.345
GBP/EUR €1.136
 

Commodities
Gold $1,305 +0.62%
Brent $58.25 +2.63%