London close: FTSE lifted by geopolitical developments

18th Aug 2014 16:59

- FTSE closes up 52.17 at 6,741.25- Geopolitical tensions ease - Mortgage lending down 9%- Asking prices register biggest ever August falltechMARK 2,782.06 +0.96%FTSE 100 6,741.25 +0.78%FTSE 250 15,796.37 +0.82%The FTSE maintained its upwards trend throughout Monday's session, ultimately ending 52.17 points higher at 6,741.25. The gains were driven by an easing of geopolitical tensions over the weekend, which helped to drive sentiment higher across the globe. Ukrainian Foreign Minister Pavlo Klimkin and his Russian counterpart, Sergei Lavrov, made progress on talks in Berlin to solve the crisis, while developments in Iraq were also being watched following reports that Islamic State militants have been forced out of Mosul dam by Kurdish fighters and Iraqi counter-terrorism forces.However, the five-day ceasefire between Palestine and Israel expires on Monday at midnight after a five-week conflict that has killed more than 2,000 people.Israeli Prime Minister Benjamin Netanyahu said on Sunday a deal will be made only if the country's security can be guaranteed.Nationwide profits more than doubles, but mortgage lending fallsIn what was a fairly quiet day for UK macro news, Nationwide reported a decline in mortgage lending, signalling a further slowdown in the housing market. Lending fell 9% to £5.8bn in the three months to 30 June.That came as Rightmove said that asking prices of properties in the UK had seen their biggest fall ever recorded in August. The property website said the 2.9% drop from July to an average of £262,401 was led by a 5.9% fall in asking prices in London.Meanwhile, motor and home insurance premiums have declined 4.9% year-on-year, a report from the British Insurance Brokers' Association revealed. The data for the second quarter showed a drop of 5.6% in motor insurance and 4.2% decline in home. Carney accused of delaying rate rise until after electionsMark Carney, the Governor of the Bank of England, has been accused of trying to put off an interest rate rise until after the next general election.John Mann, a member of the Treasury Select Committee, said the Canadian was "clearly" delaying a rise: "It is abundantly clear that Mark Carney is attempting to delay interest rate increases until after the election when they rise immediately."His comments come after he last year suggested the relationship between Osborne and Carney "was in danger of being too close".ARM rises as supermarkets fallARM Holdings was lifted by Goldman Sachs, which put the chipmaker on its 'conviction buy' list. Travis Perkins rose after Liberum Capital kept its 'buy' recommendation on the stock, despite reducing its target price from 2,190p to 2,100p. Meanwhile, grocery stocks were bucking the upwards trend, with supermarket heavyweights Tesco and Wm Morrison under pressure on concerns over their dividends. Royal Mail was firmly in the red amid further concerns about its outlook, with Jefferies reiterating its 'underperform' rating and cutting its target price from 420p to 400p. On the second tier, Bovis Homes rose strongly after delivering what Panmure Gordon described as a "positive set of interim results". Pre-tax profit in the six months to 30 June totalled £49.4m, up 166% over the year before, on revenues that jumped 75% to £322.1m, as completions reached a record level and sales prices improved. FTSE 100 - RisersCRH (CRH) 1,456.00p +2.75%Smiths Group (SMIN) 1,300.00p +2.69%Hargreaves Lansdown (HL.) 1,109.00p +2.69%AstraZeneca (AZN) 4,201.50p +2.66%ARM Holdings (ARM) 930.50p +2.59%Aggreko (AGK) 1,749.00p +2.28%International Consolidated Airlines Group SA (CDI) (IAG) 339.60p +2.10%Intertek Group (ITRK) 2,865.00p +2.03%TUI Travel (TT.) 374.00p +2.02%Carnival (CCL) 2,279.00p +1.79%FTSE 100 - FallersBritish Land Co (BLND) 724.50p -0.82%Randgold Resources Ltd. (RRS) 5,030.00p -0.69%Reckitt Benckiser Group (RB.) 5,255.00p -0.66%Land Securities Group (LAND) 1,092.00p -0.55%RSA Insurance Group (RSA) 437.80p -0.36%Prudential (PRU) 1,415.50p -0.32%Fresnillo (FRES) 1,003.00p -0.20%Royal Mail (RMG) 435.10p -0.11%Hammerson (HMSO) 612.50p -0.08%Legal & General Group (LGEN) 238.20p -0.04%FTSE 250 - RisersRegus (RGU) 188.40p +5.78%Ocado Group (OCDO) 352.30p +4.94%Foxtons Group (FOXT) 284.10p +4.91%Petra Diamonds Ltd.(DI) (PDL) 199.20p +4.84%Just Retirement Group (JRG) 149.90p +4.83%Imagination Technologies Group (IMG) 194.20p +4.52%Bovis Homes Group (BVS) 837.50p +4.49%Cairn Energy (CNE) 187.40p +4.34%Ferrexpo (FXPO) 139.60p +3.56%Balfour Beatty (BBY) 248.00p +3.38%FTSE 250 - FallersCentamin (DI) (CEY) 64.30p -3.31%Exova Group (EXO) 229.00p -2.55%African Barrick Gold (ABG) 240.90p -2.19%Debenhams (DEB) 63.40p -1.78%Just Eat (JE.) 250.00p -1.57%Fidessa Group (FDSA) 2,277.00p -1.43%Polymetal International (POLY) 535.50p -1.20%Pets at Home Group (PETS) 178.90p -1.16%Dechra Pharmaceuticals (DPH) 726.00p -1.09%Rank Group (RNK) 168.20p -1.06%NR