The Market Close - May backs Hammond amid muted UK growth - Collins Sarri Statham Investments

Today's Closing Update

U.S. shares scored fresh all-time highs in intraday trade, after a pair of economic reports came in slightly weaker than expected, but a reading of consumer sentiment hit its highest level in 13 years.

European stocks pared some of their earlier highs, although sentiment remained propped up by a strong uptick from the commodities space.

European Commission president Jean-Claude Juncker has said the Brexit process will take “longer than we initially thought”, blaming delays on Britain’s failure to settle its financial obligations. Speaking to students at the University of Luxembourg, Juncker said the nations of Europe should be grateful for what Britain had done “during war after war”, but added: “Now they have to pay.”

The UK economy expanded at a muted rate in the third quarter despite improvements in manufacturing activity, quarterly economic survey from the British Chambers of Commerce showed today. “The uninspiring results we see in our third quarter findings reflect the fact that political uncertainty, currency fluctuations and the vagaries of the Brexit process are continuing to weigh on business growth prospects,” Adam Marshall, director general of the BCC, said.

Theresa May has full confidence in Chancellor Philip Hammond, Downing Street has said. A Number 10 spokeswoman said that the two had a “very good working relationship”. Asked if the Prime Minister had full confidence in the Chancellor, the spokeswoman said: “Yes.” The expression of support for the Chancellor comes amid reports of a deepening rift with the Prime Minister, with pro-Brexit Tories calling for Mr Hammond to be sacked.

Trade association Energy UK said that smaller energy providers made a net gain of over 163,000 customers from the “Big Six” energy suppliers in September, higher than both the previous month and the same month last year. The Big Six suppliers in the UK, British Gas owner Centrica, Scottish Power owner Iberdrola, npower owner Innogy, E.On, and EDF Energy have been under pressure from smaller rivals taking customers from them.

Aldermore Group on today confirmed that it has received an preliminary acquisition offer worth £1.08bn from South African financial services company FirstRand Ltd. The UK listed retail bank said it has received a 313 pence per share acquisition offer from FirstRand. It has indicated to FirstRand that it is “likely to recommend a firm offer at this level”.

Oil prices firmed on today as bullish news from strong Chinese oil imports to turmoil in the Middle East put Brent on track for a nearly 3 percent weekly gain.

Gold was on track for its first weekly rise in five weeks today after weak U.S. inflation undermined the case for interest rate rises.

Market Close

Market	Index	Change	% Change
UK 100	7,535.4	-20.8	-0.3%
UK 250	20,259.5	+8.3	+0.0%
GER 30	12,998.2	+15.3	+0.12%
FRA 40	5,360.4	-0.4	-0.0%
U.S. 30	22,869.53	+28.52	+0.1%
U.S. 500	2,555.7	+4.8	+0.2%
OIL (BRENT)	56.96	+0.71	+1.3%
GOLD	1,300.07	+6.35	+0.5%

UK Risers & Fallers

Company	Price	Change	% Change
Provident Financial	898.25	+95	+12.4%
Glencore	376.6	+8.65	+2.4%
Aldermore	303.55	+47.5	+18.6%
GKN	318	-34.8	-9.9%
Centrica	174.6	-4.4	-2.5%
Talk Talk	205.35	-13.1	-6.0%

Reported Economic Data

Time/Date	Previous	Forecast	Outcome
1:30pm: U.S. CPI m/m	0.4%	0.6%	0.5%
1:30pm: U.S. Core CPI m/m	0.2%	0.2%	0.1%
1:30pm: U.S. Retail Sales m/m	-0.2%	0.7%	1.6%