LSE: FTSE 100 Index rises, GKN jumps 6%

Britains blue-chip index rose on Tuesday, led by gains in GKN Plc, following a string of upbeat earnings reports. Market players broadly awaited the release of key economic data from Europe and the US to assess the global economys recovery state.

The FTSE 100 index stood at 6 799.80 points at 9:23 GMT, up 0.17% on the day, having shifted in a daily range between 6 783.30 and 6 817.80 points. The index lost 3.48 points, or 0.05% on Monday to close the trading session at 6 788.07 points. It settled at 6 791.55 points on Friday, up 0.6% on weekly basis.

Wide fluctuations may be expected on Wednesday when the FOMC concludes its two-day policy meeting as any decision deviating from expectations could send waves through the markets. Also on Wednesday, the US Commerce Department is likely to report that the US economy grew by an annualized 3.0% in the second quarter, compared to the preceding three months’ 2.9% contraction.

On Thursday, we are likely to see a moderate jump in initial jobless claims for the week ended July 25th, but they will remain in the shadow of Friday’s non-farm payrolls and unemployment rate for July. US employers are likely to have added 230 000 jobs this month, compared to 288 000 in June, while the unemployment rate is anticipated to have remained flat at 6.1%.

Also due on Friday are the Markit Economics Manufacturing PMI, projected to come out unchanged, the ISM Manufacturing Report on Business and the Reuters/Michigan Consumer Sentiment Index, both expected to have marked an improvement.

In Europe, Germany’s consumer inflation for July is due to be reported on Wednesday, preceded by consumer confidence and business climate and expectations within the Eurozone.

Due on Thursday is Britain’s GfK Consumer Confidence, poised to show a second month of advance, followed by the Nationwide House Price Index, which is expected to have gained at a slower pace compared to June.

To be released later in the same day are retail sales and unemployment figures in Germany, consumer spending and producer inflation in France, as well as the all-important consumer inflation and unemployment rate within the euro area. Manufacturing activity numbers from the single currency bloc’s biggest economies are due on Friday.

Corporate news, top movers

The FTSE 100s top three gainers for the day were GKN Plc, Hammerson Plc and Next Plc.

GKN added 6.51%, or 22.35 pence, by 9:01 GMT to trade at 365.50 pence. The car and plane parts maker reported that its first-half profit surged by 6% to 296 million pounds and raised its dividend on expectations for a better-than-projected second-half performance.

Next rose by 2.57%, or 167.50 pence, to 6 687.50 pence by 9:03 GMT. The fashion retailer raised its annual guidance for sales and profit after upbeat second-half performance, aided by favorable weather and openings of profitable new space. Britains second-biggest clothing retailer reported that Next Brand sales jumped by 10.7% in the first half, while Next Retail sales rose by 7.5% and Next Directory sales gained 16.2%.

Hammerson Plc added 2.81%, or 16.75 pence, to trade at 612.25 pence at 9:08 GMT.

Mondi was the fourth best-performing company, having risen by 2.26%, or 24.00 pence, to 1 084.00 pence. The paper and packaging group announced that annual profits are set to beat expectations and raised its guidance as a result.

Losers

The FTSE 100s top three losers for the day were St Jamess Place Plc, Aberdeen Asset Management Plc and British Sky Broadcasting Group PLC.

St Jamess Place fell by 4.72%, or 37.25 pence, to 752.75 pence by 9:12 GMT, despite raising its dividend by 40% after posting a strong performance in the first six months when net inflow of funds under management surged 23% to 2.44 billion pounds.

Aberdeen Asset Management lost 1.79%, or 7.80 pence, to trade at 427.20 pence at 9:15 GMT. The companys shares slid by 5.3% on Monday, the most since January, after it reported that assets under management fell by 0.6% to 322.5 billion pounds in the quarter ended June 30th.

British Sky Broadcasting Group lost 1.13%, or 10.25 pence, to trade at 894.25 pence.