LONDON MARKETS: FTSE 100 Bucks Weaker European Trend To End Higher As Oil Companies Rise

By Barbara Kollmeyer, MarketWatch

EasyJet leads decliners list

The U.K.'s main equity index finished higher for the day and week on Friday, pushing aside weakness across global markets and tensions surrounding the Italian budget, which had weighed on continental stocks.

The U.K.'s FTSE 100 finished 0.3% higher at 7,049.80, after declining 0.1% on Wednesday. For the week, the index closed up 0.8%, representing its best weekly gain since Sept. 21.

The British pound was at $1.3053, below $1.3114 seen late Wednesday in New York. Against the euro , the pound weakened, changing hands at GBP0.8787, versus GBP0.8769 on Wednesday.

U.K. traders continued to watch U.K. Prime Minister Theresa May's efforts to forge a new trade and customs pact with the EU, with Britain is set to relinquish its membership in March. On Thursday, May indicated that an extension of the U.K.'s current EU status could come into play because of unresolved differences between the parties.

Meanwhile, the EU cautioned Rome that its budget draft would run afoul of rules in place for member countries, which pushed up the yield on Italian debt, and weighed on banking stocks especially across Europe (http://www.marketwatch.com/story/italys-stock-market-slumps-as-budget-drama-looms-weighs-on-broader-european-bourses-2018-10-19).However EU Commissioner Pierre Moscovici said that no decision about Rome's fiscal plans had been made yet. Italy was set to submit its budget plan on Saturday.

What are strategists saying?

"Investors are sitting tight, waiting to see how the storm brewing within the British camp unfolds. The Euro-sceptic wing is campaigning hard to derail the possibility of an extension to the Brexit transition period. Should they succeed there will be more downside risk for sterling, said Ricardo Evangelista, senior analyst at ActivTrades.

Which data were in focus?

U.K. borrowing touched an 11-year low (http://www.marketwatch.com/story/uk-government-borrowing-hits-11-year-low-2018-10-19-84851142) in September, putting the country on track to meet its 2018 target.

Stocks to watch

Major oil companies drove the gains in London as crude prices rose (http://www.marketwatch.com/story/oil-climbs-but-set-for-weekly-loss-on-supply-rise-2018-10-19), with Royal Dutch Shell PLC (RDSA.LN)(RDSA.LN) up 1.5% and BP PLC (BP.LN) (BP.LN) closing up 0.5%.

EasyJet PLC (EZJ.LN) topped the decliners list with a 6.3% drop after a reported downgrade by MainFirst.

InterContinental Hotels Group PLC (IAG.LN) fell 3.2% on disappointing results.

(END) Dow Jones Newswires

October 19, 2018 14:09 ET (18:09 GMT)

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