London close: Early gains erased as US economic data disappoints

15th May 2015 16:28

UK stocks finished in the red on Friday after erasing earlier gains following some weaker-than-expected economic data from the States.Wall Street stocks were swinging between gains and losses after the open with both the S&P 500 and Dow Jones Industrial Average wavering near record highs.Investors were attempting to predict the time-frame for a Federal Reserve rate hike in light of poor data on industrial production and consumer confidence.The FTSE 100 settled 0.18% lower at 6,960.49, firmly above its intra-day low of 6,937.12 but well below the its daily high of 7,009.41.US industrial production unexpectedly contracted last month, marking the fifth straight decline in output. According to figures from the Federal Reserve on Friday, US industrial production fell by a seasonally-adjusted 0.3% in April, after an upwardly-revised 0.3% fall in March, missing forecasts for no change.Meanwhile, the University of Michigan said its gauge of US consumer sentiment fell to a seven-month low of 88.6 in May, compared with a final April level of 95.9. Analysts had expected a smaller dip to 94.5."Confidence has been hitherto strong among consumers, but it looks like the recent downturn in job creation and the rising oil price have taken some of the fight out of Americans," said analyst Chris Beauchamp from IG.He said that the Fed minutes out next week will be "crucial" in determining the outlook for interest rates - "if the world's most important set of monetary policymakers still seem inclining to a 2015 rate hike then equities could take another beating".Closer to home, data from the Office for National Statistics showed that UK construction output jumped 4% in March after a 0.3% decline in February, more or less in line with predictions.Bwin surges, Coca-Cola HBC erases early gainsCoca-Cola bottler Coca-Cola HBC slipped into the red after an earlier positive start despite after beating forecasts slightly with an unexpected increase in first-quarter sales. The company did however say it "remains cautious" about operations in Greece amid a "fragile political environment".Housebuilder Bovis Homes also erased gains even though it hiked its dividend plans following a strong start to the year. Bovis said it now planned to pay out 40p per share, up from the 35p it had previously indicated.Product testing and quality certification group Intertek dropped into the red after saying it traded in line with expectations in the first four months of 2015 with revenue growth of 3.3%, helped by a stronger pound.SABMiller pleased with a deal to buy London-based modern craft brewer Meantime Brewing Company for an unspecified sum as it looks to diversify from its mainstream beer brands.Shares in online gaming group Bwin.party digital entertainment surged after confirming it has received several merger and acquisition proposals, including an audacious attempt by AIM-listed GVC Holdings to acquire its much larger rival.Market MoverstechMARK 3,238.93 -0.07%FTSE 100 6,960.49 -0.18%FTSE 250 18,020.42 +0.51%FTSE 100 - RisersCarnival (CCL) 3,147.00p +2.27%ITV (ITV) 262.00p +1.83%Compass Group (CPG) 1,147.00p +1.77%Shire Plc (SHP) 5,385.00p +1.70%Aviva (AV.) 542.50p +1.69%Hammerson (HMSO) 690.50p +1.69%Standard Life (SL.) 481.00p +1.54%Taylor Wimpey (TW.) 184.70p +1.48%Whitbread (WTB) 5,325.00p +1.43%British Land Company (BLND) 878.00p +1.33%FTSE 100 - FallersGlencore (GLEN) 293.30p -1.81%Anglo American (AAL) 1,090.50p -1.80%Coca-Cola HBC AG (CDI) (CCH) 1,391.00p -1.77%Babcock International Group (BAB) 1,081.00p -1.55%AstraZeneca (AZN) 4,367.50p -1.51%Royal Dutch Shell 'B' (RDSB) 2,026.00p -1.41%Royal Dutch Shell 'A' (RDSA) 1,991.50p -1.34%Tesco (TSCO) 224.50p -1.28%Sainsbury (J) (SBRY) 265.90p -1.23%GKN (GKN) 353.80p -1.20%FTSE 250 - RisersBwin.party Digital Entertainment (BPTY) 99.45p +11.24%Restaurant Group (RTN) 712.00p +3.49%Cranswick (CWK) 1,588.00p +3.12%Go-Ahead Group (GOG) 2,666.00p +3.05%CLS Holdings (CLI) 1,938.00p +3.03%Northgate (NTG) 654.00p +2.99%Kaz Minerals (KAZ) 269.90p +2.90%Rathbone Brothers (RAT) 2,272.00p +2.85%Clarkson (CKN) 2,354.00p +2.84%UDG Healthcare Public Limited Company (UDG) 549.50p +2.71%FTSE 250 - FallersEvraz (EVR) 193.70p -6.11%Premier Oil (PMO) 177.20p -3.17%Hunting (HTG) 595.50p -2.46%Drax Group (DRX) 414.90p -2.35%Tullow Oil (TLW) 416.90p -2.25%Wood Group (John) (WG.) 697.00p -2.18%Ocado Group (OCDO) 382.20p -1.97%Infinis Energy (INFI) 182.80p -1.77%International Personal Finance (IPF) 495.20p -1.55%TalkTalk Telecom Group (TALK) 378.20p -1.54%