DAVID MYRDDIN-EVANS
UK shares started the week on a positive note, albeit only by the narrowest of margins. The FTSE 100 finished up on Monday despite a plethora of geo-political issues causing tension in markets, such as North Korea’s missile test and Russia’s retaliation to more US sanctions. Overriding it all was a strong economic reading from China which pushed up commodity prices and helped mining stocks, which have a big weighting in the FTSE.
However Severn Trent and United Utilities topped the performance tables after an upgrade to “outperform” by RBC Capital Markets.
Shares were heading higher in early trade in Tuesday after positive sessions in Asia and on Wall Street.
The FTSE 100 was down 1.1% overall last week.
The blue-chip index dropped 1% on Friday, with big falls by tobacco stocks amid concerns that US regulators might force cigarette makers to lower nicotine levels.
British American Tobacco dived 6.8% while Imperial Brands was off 3.8%.
AstraZeneca recovered 3.6% on Friday, following its 15% tumble on Thursday on the back of a failed cancer drug trial.
On Wednesday, the UK stockmarket finished up, with ITV the top performer after an encouraging trading update. Paddy Power and Betfair both suffered after a sell note was issued by broker UBS.
Last Tuesday, London shares were pushed higher by positive results from Games Workshop and the property investment and development company Segro.
Miners were the biggest contributors, with Antofagasta up 7.5% and Anglo American by 6.1%, helping the FTSE100 close up 0.8%.
News also broke that Michael Kors has agreed to buy fashion house Jimmy Choo for £896m.