London close: Stocks slide as investors weigh US data

LONDON (ShareCast) - (ShareCast News) - London stocks were on the back foot on Thursday as a "weak" report on US durable goods orders backed the Federal Reserve's argument to keep interest rates unchanged. US durable goods orders dropped 2% in August following a 1.9% increase a month earlier, although it was better than the 2.3% fall expected. Excluding transportation, orders were flat compared to forecasts for a 0.1% increase.

"Today's weak durable goods figures are perhaps a sign that Fed chair Janet Yellen was right to sit on her hands with regard to the interest rate rise," said Dennis de Jong, managing director at UFX.com.

"Though it's no fault of her own, the air of anticipation and uncertainty of when the increase will happen is keeping investors guessing, much of the reason for the underwhelming figures.

Yellen may shed further light on the timing of the first rate hike in nine years when speaks in Massachusetts at a lecture after the markets close.

Mixed data on both sides of the Atlantic In other US economic data, the Commerce Department revealed new home sales jumped 5.7% in August compared to a month ago following a 5.4% rise in July. It (Other OTC: ITGL - news) smashed analysts' projections for a 1.6% gain.

Initial jobless claims rose to 267,000 in the week to 19 September from 264,000 the previous week, compared to forecasts of 272,000.

"We view the steady trend in continuing unemployment claims and historically low level of overall jobless claims as indicative of solid labour market separations through mid-September," according to Barclays Research analysts.

In the Eurozone, GfK (Swiss: GFK.SW - news) 's forward-looking index on German consumer confidence fell to 9.6 in October from 9.9 a month earlier, missing forecasts of 9.8.

The IFO's business confidence index, however, rose to 108.5 from 108.3, beating estimates of 107.9.

Closer to home, a British Bankers' Association revealed UK net mortgage lending hit a five-year high in August. Loans for house purchases came in at 46,473 in August, up from 46,315 in July and 40,454 a year ago.

In company news, Lloyds Banking Group (Other OTC: LLOBF - news) surged on the news that fund manager Alex Wright tipped the bank to become a dividend heavyweight over the next two years. That sent stock prices up over 1.7%. Relx (LSE: REL.L - news) benefitted from Bank of America (Swiss: BAC.SW - news) recommending buying shares of the information-solutions provider, which lifted the stock up 1.68%.

Next (Other OTC: NXGPF - news) advanced after Nomura upgraded the retailer to 'buy' from 'neutral' and lifted the price target to 8,000p from 7,600p.

Rolls-Royce dropped as EDF Energy announced the engineering group is set to supply heat exchangers to be used at the Hinkley Point C nuclear power station.

Poundland plunged after making an application to place new shares on the market and raise approximate £50m ahead of its acquisition of 99p Stores.

Smiths Group (Other OTC: SMGKF - news) tumbled as CEO Philip Bowman prepared to step down after announcing the full-year results.

Thomas Cook (Xetra: A0MR3W - news) gained as the travel company said it was on track to meet full-year profit targets.

Market Movers techMARK 2,996.31 -0.87% FTSE 100 5,961.49 -1.17% FTSE 250 16,514.53 -0.87% FTSE 100 - Risers Randgold Resources Ltd. (RRS) 3,946.00p +5.51% Fresnillo (Amsterdam: FN6.AS - news) (FRES) 621.00p +3.41% Imperial Tobacco Group (IMT) 3,465.00p +1.94% Lloyds Banking Group (LLOY) 73.84p +1.22% Whitbread (WTB) 4,649.00p +1.11% Johnson Matthey (LSE: JMAT.L - news) (JMAT) 2,398.00p +0.84% National Grid (LSE: NG.L - news) (NG.) 869.10p +0.82% Persimmon (PSN) 2,090.00p +0.77% Relx plc (REL) 1,077.00p +0.65% British American Tobacco (BATS) 3,535.00p +0.58% FTSE 100 - Fallers Glencore (Amsterdam: GX8.AS - news) (GLEN) 98.61p -9.62% Smiths Group (SMIN) 975.00p -6.16% Anglo American (LSE: AAL.L - news) (AAL) 624.60p -5.09% Old Mutual (Other OTC: ODMTY - news) (OML) 184.00p -4.27% Rolls-Royce Holdings (RR.) 650.50p -4.27% CRH (CRH (EUREX: 558474.EX - news) ) 1,759.00p -4.04% Aberdeen Asset Management (Other OTC: ABDNF - news) (ADN) 301.80p -3.45% Standard Chartered (HKSE: 2888.HK - news) (STAN) 650.00p -2.67% Ashtead Group (LSE: AHT.L - news) (AHT) 930.00p -2.62% Intertek Group (Other OTC: IKTSF - news) (ITRK) 2,361.00p -2.56% FTSE 250 - Risers Evraz (EVR) 69.00p +5.67% Genus (GNS) 1,492.00p +5.00% Zoopla Property Group (WI) (ZPLA) 212.10p +3.56% Tate & Lyle (LSE: TATE.L - news) (TATE) 569.50p +3.26% Jimmy Choo (LSE: CHOO.L - news) (CHOO) 140.80p +3.07% Thomas Cook Group (TCG) 119.00p +2.67% Card Factory (LSE: CARD.L - news) (CARD) 381.70p +2.39% AO World (Other OTC: AOWDF - news) (AO.) 160.20p +2.23% Foxtons Group (LSE: FOXT.L - news) (FOXT) 242.80p +2.19% Riverstone Energy Limited (RSE) 940.00p +2.12% FTSE 250 - Fallers Allied Minds (Other OTC: ALLWF - news) (ALM) 375.00p -14.97% Poundland Group (Other OTC: PDLDF - news) (PLND) 268.00p -13.44% Petra Diamonds Ltd (LSE: PDL.L - news) .(DI (KSE: 003160.KS - news) ) (PDL) 87.25p -11.87% Drax Group (LSE: DRX.L - news) (DRX) 240.10p -7.40% Euromoney Institutional Investor (ERM) 1,001.00p -5.92% Tullow Oil (LSE: TLW.L - news) (TLW) 169.60p -5.62% Morgan Advanced Materials (Other OTC: MCRUF - news) (MGAM) 279.50p -5.35% Premier Oil (LSE: PMO.L - news) (PMO) 63.90p -5.33% Just Retirement Group (JRG) 171.80p -5.24% Brewin Dolphin Holdings (BRW) 271.60p -4.87% FTSE TechMARK - Risers RM (RM (LSE: RM.L - news) .) 173.50p +2.06% Skyepharma (SKP) 353.00p +1.58% Dialight (DIA (Amsterdam: DI6.AS - news) ) 627.00p +1.05% Ricardo (RCDO) 910.00p +0.89% Oxford Biomedica (LSE: OXB.L - news) (OXB) 8.92p +0.22% IShares Euro Gov Bond 7-10YR UCITS ETF (IEGM) € 202.38 +0.02% FTSE TechMARK - Fallers Triad Group (Stuttgart: TD8.SG - news) (TRD) 32.50p -8.45% Spirent Communications (Other OTC: SPMYY - news) (SPT (Taiwan OTC: 8431.TWO - news) ) 74.25p -4.19% E2V Technologies (LSE: E2V.L - news) (E2V) 224.50p -2.50% Oxford Instruments (Other OTC: OXGGY - news) (OXIG) 557.00p -1.42% CML Microsystems (LSE: CML.L - news) (CML) 347.50p -1.42% BATM Advanced Communications Ltd (Other OTC: BTAVF - news) . (BVC) 19.00p -1.30% KCOM Group (LSE: KCOM.L - news) (KCOM) 89.00p -1.11% SDL (SDL (LSE: SDL.L - news) ) 331.25p -0.97% Gresham Computing (LSE: GHT.L - news) (GHT) 110.00p -0.90% Torotrak (TRK) 6.87p -0.79%