LONDON MARKETS: FTSE 100 Drags, Keeping Weekly Loss On The Radar

By Carla Mozee, MarketWatch

Blue-chips benchmark down nearly 3% for the week

Stocks in the U.K. fell Friday, as shares of InterContinental Hotels Group PLC came under pressure after a trading update, and as investors rounded off what's set to be a losing week for equities.

The FTSE 100 was down 0.9% to 6,062.79, with only the utilities sector registering a gain, according to FactSet data.

Among decliners, Inmarsat PLC (ISAT.LN) shares sank 6%, building on Thursday's 7.2% slide after the satellite company cut its full-year sales outlook (http://www.marketwatch.com/story/inmarsat-cuts-revenue-guidance-on-energy-slowdown-2016-05-05).

Commodity shares were also in the red, with oil majors BP PLC (BP.LN) (BP.LN) and Royal Dutch Shell PLC (RDSB.LN) (RDSB.LN) lower as oil prices struggled. BP lost 1.7% and Shell shed 1.7%.

The FTSE 100 was on course for a 2.9% decline for the holiday-shortened week. That would mark a third consecutive weekly loss, and the largest weekly pullback since the week ended Feb. 5, according to FactSet.

Stocks remained lower after closely watched U.S. jobs data were released during afternoon trade in Europe. In April, 160,000 new jobs were created (http://www.marketwatch.com/story/us-gains-160000-jobs-in-april-2016-05-06) in the U.S. Economists polled by MarketWatch had expected 203,000 nonfarm jobs. The unemployment rate was unchanged at 5%, as more people dropped out of the labor force, the government said.

The pound was still down against the dollar after the report, off 0.5% at $1.4426.

Meanwhile, shares of InterContinental Hotels (IHG) fell 1.1%. The owner of the Holiday Inn, Crowe Plaza and other hotel chains said the earlier timing of the Easter holiday "had an adverse impact across the industry, especially in the Americas and Europe, which we expect to reverse in Q2." First-quarter global revenue per room rose 1.5%, said IHG.

IHG had a "slow start to 2016", said analysts at Numis in a note. "In our view, there is increasing evidence that the U.S. hotel industry is close to a cyclical peak and that this may stimulate further consolidation in the sector."

In the mining space, BHP Billiton PLC (BLT.LN) (BHP.AU) (BHP.AU) shares were down 3%. The mining heavyweight in a Friday statement said a Brazilian court on Thursday approved a restoration agreement reached in March with some Brazilian authorities over the deadly Samarco dam collapse in November.

Earlier t (http://www.marketwatch.com/story/mining-firms-bhp-vale-face-44b-lawsuit-in-brazil-2016-05-03)his week, federal prosecutors in Brazil (http://www.marketwatch.com/story/mining-firms-bhp-vale-face-44b-lawsuit-in-brazil-2016-05-03) filed a civil lawsuit seeking 155 billion reals ($43.84 billion) for cleanup and remediation from BHP and Vale SA (VALE5.BR) (VALE5.BR), which run the Samarco joint venture.

(END) Dow Jones Newswires

May 06, 2016 08:58 ET (12:58 GMT)

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