The Market Close – Lloyds and Glencore propel U.K. market higher

Today’s Closing Update

U.S. Markets were mostly higher following the flat performance of the previous session.

European shares retreated under pressure from a continued rise in bond yields, though well-received results updates from telecom companies, Lloyds and Glencore helped limit the declines.

BP forecasts that more than 40% of the overall increase in energy demand will be met by renewable forms of power. The oil company also said that greater efficiency in transportation would curb oil demand. BP also estimated that oil output of 85 million barrels per day would satisfy the Paris Agreement on climate change. The agreement pledges to keep global temperatures well below 2C above pre-industrial times and “endeavour to limit” them even more, to 1.5C.

Cineworld said that Goldman Sachs Group Inc reduced its stake in the company to 2.3% on Friday. Goldman’s previous stake in Cineworld was 6.5%.

The U.K. has seen the strongest two quarters of productivity growth since the recession of 2008, according to the latest data. Output per hour rose 0.8% in the three months to December, the Office for National Statistics said. It follows growth of 0.9% in the previous period. There was also a better than expected rise in wages. Excluding bonuses, earnings rose by 2.5% year-on-year. However, unemployment edged higher, but still remains low at 4.4%.

Centrica is preparing to unveil figures for a year meanwhile its share price fell by a record, investors and analysts are divided over whether the British utility will cut its dividend. The U.K.’s biggest energy supplier is trading near the lowest level in almost two decades after a November profit warning shook investor confidence and spurred talk of a reduced shareholder payment.

Mark Carney said the U.K. is headed for higher interest rates, but policy makers are reluctant to give clearer guidance on the timing of any future increase. In testimony to Parliament’s Treasury Committee, the Bank of England Governor stuck to the script from the Inflation Report released earlier this month, reiterating that the Monetary Policy Committee considers that rates will need to rise somewhat earlier and to a somewhat greater extent than previously anticipated.

Oil Prices eased under pressure from a recovery in the value of the dollar from last week’s three-year lows and from an expected rise in U.S. crude production.

Gold Prices struggled to recover from yesterday’s sharp drop against the rallying US Dollar in London, halving last week’s 2.2% gain.