Cooling US economy and higher oil prices drive the UK market

It’s a tricky time for investors, who are torn between hopes of a looser monetary policy and fears of a hard landing for the economy, after several indicators that showed that the US economy is cooling. The ISM services came in at 51.2, while 54.4 was expected in the consensus. The ADP employment report was also below expectations. The FTSE gained 0.4%.

UK indices were up this morning, lifted by commodities, as oil prices remain firm after this week’s OPEC announcement of a production cut.

Among stocks, Robert Walters fell more than 4% after the London-based recruiter issued a poor outlook.

In other news, mortgage lender Halifax said house prices increase for a third consecutive month in March, up 0.8% from February, while the consensus was for a 0.3% drop.

UK markets will be closed from Friday to Monday and reopen on Tuesday.

 

Things to read today:

The UK Stock Market Needs Another Nigel Lawson (Bloomberg)

Tech Shines, Cyclicals Lose as Traders Bet on Uneven Growth Shock (WSJ)