By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) ? U.K. stocks slid Friday but ended with the best weekly gain in six months, propelled by indications from the new central bank governor that signaled a pro-stimulus stance.
On Friday, the FTSE 100 index /quotes/zigman/3173262 UK:UKX -0.72% ?declined 46.15 points, or 0.7%, to 6,375.52. It ended the week up 2.6%, the highest weekly rise since the week of Jan. 4.
U.K. equities failed to follow through from a blockbuster Thursday. The FTSE 100 logged its best one-day advance and percentage gain since fall 2011 on Thursday, surging 3%, or 191.80 points, to 6,421.67 after strong hints from the Bank of England that it will keep its monetary policy accommodative.
Europe next week looks to China
The debate over when the U.S. Federal Reserve will start to withdraw liquidity will continue to rage, especially with the European Central Bank and the Bank of England turning more dovish. But the focus will shift to China and the impact it is having on global growth.
Several miners stepped back after posting strong gains on Thursday. Shares of Rio Tinto PLC /quotes/zigman/182541/quotes/nls/rio RIO -2.57% ?? /quotes/zigman/155899 UK:RIO -4.41% fell 4.4% in London, BHP Billiton PLC /quotes/zigman/270355/quotes/nls/bhp BHP -1.28% ? /quotes/zigman/184879 UK:BLT -3.64% declined 3.6% and Glencore Xstrata PLC /quotes/zigman/5131911 UK:GLEN -6.52% ?tumbled 6.5%. Shares of Randgold Resources Ltd. /quotes/zigman/349729 UK:RRS -5.84% ?fell 5.8% even as Nomura lifted shares to neutral from reduce, as gold prices sank.
Shares of Whitbread PLC /quotes/zigman/445964 UK:WTB -2.79% ?fell 2.8% after UBS strategists cut the firm to neutral from buy, after an investment day. ?While we view the new brand and international expansion plans positively, we do not think these initiatives change the near-term outlook,? said Jarrod Castle, analyst at UBS.
HSBC Holdings gains in Friday trading.Shares of index heavyweight HSBC Holdings PLC /quotes/zigman/13843 UK:HSBA +0.15% ? /quotes/zigman/207333/quotes/nls/hbc HBC +2.18% ?rose 0.2%, providing some support for the FTSE.
Goldman Sachs said in a note on Friday that it was advising going long U.K. equities and targeting 7,100 for the blue-chip index. The investment bank gave three reasons for its view: First, the U.K. economy looks to be on an upswing and second, monetary policy looks set to ease further, especially after Thursday?s dovish statement from the Bank of England, led by new Governor Mark Carney.
?Third, our forecasts also envisage a gradual stabilization in euro area growth in the second half of the year. As one of the U.K.?s largest trading partners, the gradual improvement in growth here should also be a tailwind for the U.K. economy and U.K. markets,? wrote economist Noah Weisberger in a note.
U.K. stocks didn?t get a lift from a better-than-expected June jobs growth for the U.S. and upward revisions to data for the two previous months. Analysts said the data will keep the Fed on track for tapering its bond-buying program.
/quotes/zigman/3173262
UK : FTSE Indices
Volume: 0.00
July 5, 2013 4:35p
/quotes/zigman/182541/quotes/nls/rio US : U.S.: NYSE
Volume: 1.77M
July 5, 2013 1:20p
Rev. per Employee$716,974
/quotes/zigman/155899 UK : U.K.: London
2,636.00 p
-121.50 -4.41%
Volume: 6.00M
July 5, 2013 4:35p
Market Cap?38.95 billion
Rev. per Employee?451,624
/quotes/zigman/270355/quotes/nls/bhp US : U.S.: NYSE
Volume: 1.22M
July 5, 2013 1:20p
/quotes/zigman/184879 UK : U.K.: London
Volume: 8.44M
July 5, 2013 4:35p
Market Cap?36.53 billion
Rev. per Employee?911,375
/quotes/zigman/5131911 UK : U.K.: London
Volume: 37.29M
July 5, 2013 4:35p
Market Cap?36.44 billion
/quotes/zigman/349729 UK : U.K.: London
4,050.00 p
-251.00 -5.84%
Volume: 767,463
July 5, 2013 4:35p
Rev. per Employee?73,346
/quotes/zigman/445964 UK : U.K.: London
Volume: 875,498
July 5, 2013 4:35p
Rev. per Employee?60,209
/quotes/zigman/13843 UK : U.K.: London
Volume: 31.18M
July 5, 2013 4:35p
Market Cap?132.51 billion
Rev. per Employee?204,167
/quotes/zigman/207333/quotes/nls/hbc US : U.S.: NYSE
Volume: 812,961
July 5, 2013 1:19p
Market Cap$199.63 billion
Rev. per Employee$320,506
Barbara Kollmeyer is an editor for MarketWatch in Madrid. Follow her on Twitter @MWBarbaraKollmeyer.
Source: http://www.marketwatch.com/news/story.asp?guid=%7BEF53E924-E53F-11E2-ACAD-002128040CF6%7D&siteid=rss
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