Market overview: Gains pared as US data disappoints

LONDON (ShareCast) - 1630:Close UK stocks have finished just slightly higher, although off their best levels of the day after the release of some slightly weaker than expected economic data Stateside. Car insurer Admiral (LSE: ADM.L - news) and broadcaster BskyB (LSE: BSY.L - news) led gains, with investors having reacted positively to the latter's stated aim of joining the fray in the digital space with the launch of a new internet TV channel. Oil stocks also performed well. Out in the broader market, it was Ocado which spearheaded gains after management offered some relatively upbeat sales guidance. Carpetright (Xetra: 904879 - news) , on the other hand, was pushed down 11% by a profit warning. Acting as a backdrop, the Stoxx 600 has ended January with its largest advance for this month of the year since 1998. FTSE 100 (Euronext: VFTSE.NX - news) up 11 to 5,682. 1549: While still trading in positive territory, the Footsie (FTSE: ^FTSE - news) has come well off its intraday high with US data dampening the earlier rise. The Conference Board's consumer confidence index fell to 61.1 in January, down from the upwardly revised reading of 64.8 (up from 64.5 the year before) and well below consensus expectations of 68. The present situation index dropped to just 38.4, from 46.5 the month before. FTSE 100 up 25 at 5,696. 1408: Footsie traded within a narrow range - roughly 5,710 to 5,720 - over the lunch-time session. Risers outnumber fallers by around three-to-one. Chip-designer ARM is still the top riser, though both Nomura and Peel Hunt think the shares are fairly priced at the current level. Despite what it termed an 'exceptionally strong' fourth quarter performance by ARM, Peel Hunt is not expecting upgrades to fiscal 2012 earnings estimates 'other than a currency uplift to EPS [earnings per share] of around 5% to reflect the dollar at 1.57' versus sterling. The broker notes fourth quarter sales were 10% ahead of market consensus, while earnings per share at 12.4p were also ahead of what the market was expecting (11.8p). Peel Hunt sticks with its 'hold' rating and price target of 580p. Nomura is also staying neutral on the stock, and it also has a price target of 580p. Nomura's caution is prompted by the global macroeconomic environment, which remains uncertain: "management is typically conservative with guidance, but this time concerns around the macro-environment and industry confidence seem higher to us." FTSE 100 is up 45 at 5,716. 1301: UK stocks are holding near their best levels of the day ahead of various economic data releases Stateside this afternoon. Shares of Morrison and Associated British Foods (Dusseldorf: 719064.DU - news) , however, may be getting weighed down by a report from researcher Kantar WorldPanel showing how grocery sales in Britain climbed by 4.2% on the year in the 12 weeks to the past 22nd of January versus the 4.8% gain seen in the period until Christmas. Given the very high levels of grocery inflation that shows how shoppers are consuming both fewer and cheaper items. FTSE 100 up 45 to 5,716. 1043: Footsie is back on the climb as banks trim early losses and investors show enthusiasm for energy stocks such as BP and Tullow Oil (Stuttgart: 591219 - news) and insurers such as Admiral, Aviva (LSE: AV.L - news) and Standard Life (Other OTC: SLFPF.PK - news) . Down among the FTSE 250 (FTSE: ^FTMC - news) universe, grocery delivery firm Ocado impressed the market with its growth story, but Carpetright has been floored by a profits warning, while a spirited rant from the chief executive of Aquarius Platinum (Berlin: QPMC.BE - news) about the increasing difficulties of doing business in Africa has done little to distract attention away from the group's disappointing output figures for the fourth quarter of 2011. FTSE 100 is up 47 at 5,718. 0952: Footsie is just about keeping its head above 5,700 but the top-share index is some 20 points off its high point for the day, as gains on early leaders ARM and BSkyB are trimmed. Vedanta is going well after announcing record production levels but banks are weighing on the index after Spanish banking giant, Santander (Madrid: SAN.MC - news) , which has a strong presence on the UK high street after snapping up several former building societies, unveiled provisions for slumping property values in its results. FTSE 100 is up 32 at 5,703. 0835: London is off to a flying start, buoyed by news that heads of government across the European Union have given their backing for greater fiscal integration within the community. There has been plenty of good news on the corporate front, too, with chip designer ARM and pay TV operator British Sky Broadcasting both issuing sparkling updates. Even decidedly unglamorous utility SSE (Frankfurt: A0RFBG - news) is getting in on the act, with investors bidding up the shares after the company's nine-months results. National Grid (LSE: NG.L - news) was another utility on the up; it has pledged to deliver dividend growth of 4% each year, starting next year. FTSE 100 is up 44 at 5,715.