Shares Ignore Economic Data
April 26, 2011
The Financial Times-Stock Exchange 100-Share Index finished up 6.9 at 3830.3 on volume of 462.7 million shares, tracking an early advance in the U.S. market. The Dow Jones Industrial Average was up 11 points at the close of trading in London. Meanwhile, Britain's benchmark September futures contract stood at 3835, compared with Tuesday's close at 3836. The FT-SE 250 index of mid-capitalization stocks rose 5.8 to end the day at 3830.3. Nicky Rose, a strategist with Nomura Research Institute Europe Ltd., called the market's finish a ``creditable result,'' given losses on Wall Street Tuesday, weak global bond markets and some domestic economic data released early Wednesday that hinted at higher interest rates to come. The data showed underlying average earnings rose 3.75% in the 12 months to June, higher than the 3.5% increase expected by economists. Unemployment in July fell 24,100 in July, which was more than double the decline of 11,250 economists had expected. Among actively traded shares, merchant banks gained 1.5%, propelled by renewed takeover speculation surrounding Schroders. But banking shares, which have been among the markets biggest gainers recently, in general succumbed to some mild profit-taking. Standard Chartered dropped 14 to 691; Bank of Scotland eased 3 to 245; Royal Bank of Scotland declined 4 to 505; and Abbey National gave up 4 to 591. National Grid recovered somewhat after plunging 6% on Tuesday following news of regulatory price cuts that will rip into the utility's revenues. Shares of cable companies gained amid consolidation rumors, with General Cable up 3 to 166.
