By Carla Mozee, MarketWatch
LSE pulls back on Euronext news; Lloyds gains on MBNA buy
U.K. stocks nudged lower Tuesday, as mining shares struggled once again, and as investors looked past worries about terrorist attacks in Europe.
The FTSE 100 shed 0.1% at 7,012.86 as commodity and consumer goods shares fell. But consumer services, industrial and health care shares advanced. The index on Monday rose 0.1%. (http://www.marketwatch.com/story/ftse-100-pulls-back-from-7-week-high-as-miners-drag-2016-12-19)
See:When are European markets closed for Christmas and New Year's holidays? (http://www.marketwatch.com/story/when-are-european-markets-closed-for-christmas-and-new-years-holidays-2016-12-19)
In individual stocks, Lloyds Banking Group PLC moved higher on deal news, while those in the London Stock Exchange Group PLC lost ground on reports of talks with Euronext NV.
Terror fears: Travel stocks came into focus after attacks in Europe on Monday. In what German authorities are calling a "probable terror attack (http://www.marketwatch.com/story/probable-terror-attack-in-berlin-police-question-pakistani-suspect-in-12-deaths-2016-12-20)," a truck plowed into a popular Christmas market (http://www.marketwatch.com/story/berlin-christmas-market-truck-incident-claims-at-least-nine-lives-police-2016-12-19) in Berlin Monday night, leaving at least 12 dead. Earlier the same day, Russia's envoy to Turkey was shot (http://www.marketwatch.com/story/russian-ambassador-to-turkey-is-shot-2016-12-19-12103737) and killed in Ankara during a gallery opening, and three people wereinjured (http://www.marketwatch.com/story/police-call-off-search-in-shooting-at-swiss-mosque-2016-12-20) at a shooting at an Islamic center in Zurich.
Most travel shares started in the red Tuesday then began to turn higher. EasyJet PLC (EZJ.LN) rose 0.9%, Premier Inn hotel chain owner Whitbread PLC (WTB.LN) gained 0.4%, and travel services provider TUI AG picked up 0.3%.
But British Airways parent International Consolidated Airlines Group PLC (IHG) shed 0.1%, and InterContinental Hotels Group PLC (IHG) slipped 0.1%.
"The usual knee-jerk sell off on fears of a negative business knock-on for the likes of easyJet (EZJ), Ryanair (RYA), Int. Cons Airlines (IAG), Thomas Cook (TCG) and TUI (TUI) simply hasn't materialized. Perhaps festive travel is regarded as something which simply can't be eschewed," said Mike van Dulken, head of research at Accendo Markets, in a note.
"The market response to each new terror event is less and less pronounced. Over the years, investors have learned to live with horror on a far too regular basis, leading to faster and faster near-term recovery in the aforementioned stocks," he said.
Deal moves: Lloyds Banking Group PLC (LLOY.LN) was up 0.8% after the company said it's buying MBNA Ltd (http://www.marketwatch.com/story/lloyds-buys-b-of-as-uk-mbna-unit-for-24-bln-2016-12-20)., the U.K. credit-card business of Bank of America Corp. (BAC) , for GBP1.9 billion ($2.35 billion), as part of its plan to expand its consumer-finance business.
In other deal developments, London Stock Exchange Group (LSE.LN) shed 0.3% as the exchange operator is in talks to sell its LCH SA clearing business to Euronext NV (ENX.FR) .
Digging down: Miners were among those weighing on the FTSE 100, with Randgold Resources PLC (RRS.LN) down 1.6% as gold prices fell. Glencore PLC (GLEN.LN) off by 0.8% and BHP Billiton PLC (BLT.LN) (BHP.AU) (BHP.AU) lower by 0.7%.
The pound was buying $1.2380, compared with $1.2406 late Monday in New York.
(END) Dow Jones Newswires
December 20, 2016 05:52 ET (10:52 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.