FTSE Indexes Traded Mixed as Corporate Earnings Affect Valuations

FTSE Indexes were mixed Friday. The FTSE 100 gained 34.31 points or 0.56 percent to close at 6,138.50. The FTSE 250 was lower by -9.57 points or -0.06 percent to close at 16,650.30. For the week the FTSE 100 was 0.18 percent higher and the FTSE 250 was down -0.05 percent.

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Source: FTSE 100 and FTSE 250. Google Finance.

In Europe, stocks were broadly affected by disappointing earnings results from the retail industry which has been an increasingly significant factor throughout the week. Among retailers with lower earnings and trading values this week included Nordstrom, JCPenney, Dillard’s, Macy’s, Kohl’s and Gap. Apple has also traded lower this week as analysts increase speculation over the firm’s research and development activities after the firm recently reported substantially lower product sales.

Weaker economic data Thursday and a report from the Bank of England on unchanged interest rate policy and the risks of a U.K. exit from the European Union were also continued factors for stock valuations in Europe.

Mining companies continued to remain actively traded in Europe with mixed results on Friday as oil prices continued to remain a factor. Anglo American regained some of its losses from Thursday while Glencore and BHP Billiton continued to fall. Anglo American was up 1.66 points or 0.29 percent to 576.66. Glencore’s stock fell -1.86 points or -1.42 percent to 129.24 and BHP Billiton was down -0.39 points or -2.10 percent.

For the day, top gainers in the U.K. included Ibstock which gained 5.74 percent and Vedanta which gained 5.57 percent. Stocks falling included TalkTalk which reported lower telecom earnings and Cairn Energy which fell as speculation increased on its acquisition strategy.

Data from IFA magazine reported the following stocks leading gains and losses in the U.K. on Friday.

Gains

Ibstock (IBST) 5.74 percent

Vedanta Resources (VED) 5.57 percent

Polypipe Group (PLP) 5.14 percent

Hikma Pharmaceuticals (HIK) 3.51 percent

Virgin Money Holdings (UK) (VM.) 2.71 percent

Losses

Ocado Group (OCDO) -6.18 percent

Lookers (LOOK) -5.32 percent

TalkTalk Telecom Group (TALK) -4.53 percent

esure Group (ESUR) -3.29 percent

Cairn Energy (CNE) -3.07 percent

In other European markets, Germany’s DAX closed at 9,952.90 for a gain of 90.78 points or 0.92 percent. France’s CAC 40 was higher at 4,319.99 for a gain of 26.72 points or 0.62 percent. The Stoxx Europe 600 closed at 334.68 for a gain of 1.57 points or 0.47 percent. The Europe Dow closed lower at 1,530.89 for a loss of -3.34 points or -0.22 percent.

In Asia, stocks traded mostly lower. In China, the Shanghai Composite was down -8.75 points or -0.31 percent to close at 2,827.11. Hong Kong’s Hang Seng Index was down -196.17 points or -0.99 percent to close at 19,719.29. Japan’s Nikkei 225 was down -234.13 points or -1.41 percent to close at 16,412.21. The S&P BSE Sensex was down -300.65 points or -1.17 percent to close at 25,489.57 and India’s NSE Nifty was down -85.50 points or -1.08 percent to 7,814.90. As a broad market measure, the Asia Dow was down -53.77 points or -2.04 percent to 2,579.87.

In the U.S., stocks traded lower with the weaker retail industry outlook. Retail sales were also a factor in Friday’s trading as the Commerce Department reported an increase in retail sales for April of 1.3 percent which was above consensus of 0.9 percent but mostly helped by sales in the automotive industry. For the day, the Dow Jones Industrial Average was down -185.18 points or -1.05 percent to 17,535.32. The S&P 500 was down -17.50 points or -0.85 percent to 2,046.61. The Nasdaq Composite was down -19.66 points or -0.42 percent to 4,717.68.

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