London close: Stocks take a breather ahead of Fed speakers

London´s top-flight index barely managed to close in the green, following the release of somewhat mixed economic data Stateside and ahead of speeches from two key Fed speakers, one later on Thursday and another on Friday.

The FTSE 100 was little changed by the close of trading, edging higher by 0.04% or 2.80 points to close at 6,265.65, with the domestic-facing FTSE 250 lower by 0.23% or 39.81 points at 17,192.83.

Speaking at the Peterson Institute, in Washington DC, after the close of markets, Federal Reserve governor Jerome Powell said that depending on the incoming economic data an interest rate hike "may be appropriate fairly soon", but said he wanted to see a "significant strengthening" in economic activity in the second quarter.

Data released earlier in the day showed that orders for US durable goods jumped by 3.4% month-on-month in April, easily outpacing forecasts for a rise of 0.3%. However, the figures were distorted by a near 65% surge in orders for civilian aircraft.

"On balance, this morning’s report from the Census Bureau confirms that factory demand remained soft through Q1 and has yet to rebound. We do not expect to see a near-term turn around in the US manufacturing sector," Barclays´s Jesse Hurwitz said in a research report sent to clients.

Nevertheless, on the back of Thursday´s reading on durable goods and Wednesday´s release of the latest international trade in goods numbers the Federal reserve bank of Atlanta revised its tracking estimate for second quarter GDP in the US from 2.5% to 2.9%.

Markets were also eagerly awaiting a speech from Fed chair Janet Yellen herself scheduled for Friday.

Acting as a backdrop, and contrary to the expectations of some market partipants, Japanese officials refrained from making any official announcements at the meeting of G7 central bankers and finance ministers being held that same day in the city of Sendai.

However, prime minister Shinzo Abe reportedly warned his guests of the risk of a repeat of the last financial crisis if the proper economic policies were not adopted.

Miners, grocers and real estate stocks were at the top of the leaderboard on the back of reports that China´s central bank would maintain a slightly loose monetary policy and as the latest Brexit polls appeared to favour the 'Remain' camp slightly.

Front month Brent crude futures ended the day barely unchanged, rising by just 0.04% to $49.76 per barrel on the ICE after having traded above the $50 throughout the better part of the session.

Overnight, the president of the Federal Reserve bank of Dallas, Robert Kaplan, argued in favour of a rate hike "in the near future" but not necessarily at its mid-June meeting, so long as the economy evolved as expected.

He also said the risk of Brexit would be "a factor" at the Fed's 15 June policy meeting and noted the risk of a 'sell-off' in the pound should the UK opt to leave the European Union.

On that note, the results of the latest Ashcroft poll showed that 65% of those surveyed expected the 'Remain' camp to prevail versus the 35% who expected the opposite result.

Similarly, the results of the latest BMG Research poll, which was conducted on-line, revealed a small up-tick in the proportion of respondents who said they were backing the 'Remain' option, which rose by one percentage point to 44%.

Referendum anxiety takes its toll on investment

Uncertainty surrounding the 23 June referendum sent business investment in the UK 0.5% lower in the first three months of 2016, contributing to a slowdown in the economy from the 0.6% quarter-on-quarter pace seen in the final three months of 2015 to 0.4%, a second estimate from the Office for National Statistics revealed, bang in-line with estimates and the preliminary estimate.

The Confederation of British Industry's gauge of service sector firm confidence fell to its lowest mark in more than three years over the three months to May.

Gross mortgage borrowing in the UK was at £12bn in April, for a 12% rise versus a year ago, following March's spike in activity as borrowers raced to complete purchases ahead of the increase in Stamp Duty, according to the BBA.

A raft of companies went ex-dividend on Thursday, including Carnival, DCC, Whitbread, Amec Foster Wheeler and Inchcape.

Miners pace gains, banks see profit-taking

Miners were buoyed by reports in Chinese media, citing People's Bank of China analyst, that the monetary authority was intending to keep a slightly loose policy stance.

Banks on both sides of the Atlantic retreated following their recent strong run, although some analysts in the City were also referencing a report from the Financial Ombudsman showing that payment protection insurance remained the most complained about financial product, while complaints about packaged accounts and payday loans had surged.

Full year pre-tax profits at Tate & Lyle soared to £126m from 25m as revenues rose 1% to £2.35bn. Adjusted profit before tax was £67m higher at £193 largely as a result of net exceptional costs in the year of £50m.

United Utilities saw underlying profits drop 9% over the twelve months ending on 31 March to reach £604.1m, even as revenues edged up from £1,720.2m to £1,730m. The company declared a final dividend of 25.64p per share, taking the total for the year to 38.45p, for an increase of 2% - in line with its payout policy.

Six international oil firms including BP and Royal Dutch Shell Plc had tabled bids to operate Qatar's biggest offshore oil field, Reuters reported, citing two people familiar with the matter.

Pets at Home reported an increase in pre-tax profit for the year as revenue grew and the company expressed confidence over its outlook. For the 53 weeks to the end of March, statutory pre-tax profit edged up to £92.1m from £90.2m on revenue of £793.1m, up from £777.8m. Meanwhile, group like-for-like revenue grew 2.1% compared with 4.2% growth in the same period last year.

FTSE 250 car dealership Inchcape said on Thursday that it has made a good start to the year, in line with its expectations. In a trading update for 1 January to 25 May, the company said group revenue rose 12.8% at actual currency to £2.47bn, or an 11.7% increase at constant currency.

Daily Mail & General Trust shares tumbled as the company posted drop in first-half profit and warned that a weak print advertising market will hit margins in the media business.

B&M European Value Retail, the discounter chaired by Sir Terry Leahy, declared a special dividend as it posted final results showing strong sales, profits and cash generation. The FTSE 250 group, which floated almost two years ago, opened a record 79 UK stores in the UK and six Jawoll stores in Germany in the 52 weeks to 26 March, helping lift revenues increased by 23.6% to £2.04bn.

Market Movers

FTSE 100 (UKX) 6,265.65 0.04%
FTSE 250 (MCX) 17,192.83 -0.23%
techMARK (TASX) 3,121.50 0.16%

FTSE 100 - Risers

Glencore (GLEN) 136.20p 2.10%
Sainsbury (J) (SBRY) 268.10p 1.98%
3i Group (III) 542.50p 1.88%
BHP Billiton (BLT) 852.70p 1.85%
Intu Properties (INTU) 303.60p 1.85%
Berkeley Group Holdings (The) (BKG) 3,379.00p 1.62%
Worldpay Group (WI) (WPG) 272.70p 1.56%
Mediclinic International (MDC) 868.00p 1.46%
Anglo American (AAL) 629.20p 1.45%
Johnson Matthey (JMAT) 2,882.00p 1.44%

FTSE 100 - Fallers

Carnival (CCL) 3,379.00p -3.15%
Royal Bank of Scotland Group (RBS) 248.30p -3.01%
Whitbread (WTB) 4,242.00p -2.62%
DCC (DCC) 6,355.00p -2.38%
Marks & Spencer Group (MKS) 390.60p -2.20%
easyJet (EZJ) 1,533.00p -1.48%
TUI AG Reg Shs (DI) (TUI) 1,042.00p -1.42%
Lloyds Banking Group (LLOY) 72.81p -1.26%
International Consolidated Airlines Group SA (CDI) (IAG) 544.50p -1.18%
United Utilities Group (UU.) 954.00p -1.14%

FTSE 250 - Risers

Pets at Home Group (PETS) 261.60p 4.93%
Aldermore Group (ALD) 218.60p 4.24%
OneSavings Bank (OSB) 321.00p 3.88%
PayPoint (PAY) 906.50p 3.72%
Thomas Cook Group (TCG) 75.20p 3.44%
Kaz Minerals (KAZ) 153.80p 3.22%
Acacia Mining (ACA) 323.60p 3.06%
Sports Direct International (SPD) 372.70p 2.98%
B&M European Value Retail S.A. (DI) (BME) 290.70p 2.98%
Polymetal International (POLY) 825.50p 2.93%

FTSE 250 - Fallers

Ibstock (IBST) 203.00p -9.25%
Restaurant Group (RTN) 353.30p -4.64%
Euromoney Institutional Investor (ERM) 977.00p -4.59%
Amec Foster Wheeler (AMFW) 451.60p -4.24%
Electra Private Equity (ELTA) 3,804.00p -3.82%
Lookers (LOOK) 146.90p -3.67%
Evraz (EVR) 116.60p -3.64%
Great Portland Estates (GPOR) 762.00p -3.36%
Mitchells & Butlers (MAB) 289.60p -3.27%
Zoopla Property Group (WI) (ZPLA) 326.90p -3.23%