DAVID MYRDDIN-EVANS
UK stocks started positively on Monday, helped by gains in the insurance sector as worries about Hurricane Irma and North Korea lessened.
The FTSE 100 closed up 0.49% to 7,413.59 as North Korea tensions abated and insurers reaped the rewards of Hurricane Irma taking a less damaging path through the US, being downgraded from a category four storm to category one by early Monday and avoiding a direct hit on Miami, which could have been so expensive that insurers might have had to raise extra capital.
In early trade on Tuesday share prices were rising until the release of the UK inflation data, which suggested a rate hike could be more imminent that initially thought. Shares reversed their gains on the news.
The FTSE 100 was down 0.7% overall last week.
On Friday the blue-chip index declined 0.3%, with B&Q owner Kingfisher off 3.6%. But Thursday was a positive day. Astra Zeneca jumped 4.3% on renewed optimism for its cancer treatment pipeline, helping the FTSE 100 to a 0.6% gain.
Direct Line led car insurer shares higher as the Government revised rules for calculating personal injury claims. And Micro Focus added 5.1% to its 6.2% gain on Wednesday following a strong performance by its new HPE Software division.
The FTSE 100 was down 0.3% on Wednesday, with Barratt Developments the biggest faller, off 4.6% on disappointment that full-year results weren’t better. But ITV added 2% on hopes that the TV advertising market is stabilising.
And last Tuesday saw the FTSE 100 off 0.5% amid ongoing concerns about North Korea tensions.
Cruise ship operator Carnival fell 3.5% on concerns it could cut guidance at its results on September 26.
But Merlin Entertainments was up 2.1% on positive forecasts for a new Legoland park in New York.