LSE: FTSE 100 index rises led by Reckitt Benckiser Group

Britains headline index opened slightly higher on Monday and continued to move up, led by gains in Reckitt Benckiser, but mixed performance from Asia and the US left the market with no certain direction. Investors eyed a slew of crucial US and European economic data this week to assess the strength of the worlds top economies.

The FTSE 100 index stood at 6 801.80 points at 8:30 GMT, up 0.15% on the day, having shifted in a daily range between 6 810.30 and 6 788.30. The UK blue chip index fell by 0.44%, or 29.91 points, on Friday to settle the week 0.6% higher at 6791.55 points.

Market participants awaited the release of US services PMI and pending home sales, the days most significant economic indicators. The flash Services PMI, prepared by Markit Economics, is expected at 59.8, down from June’s final reading of 61.0. Meanwhile, US pending home sales are projected to have risen by a mere 0.5% in June, well behind the preceding month’s 6.1%.

Wide market fluctuations may be expected on Wednesday when the FOMC concludes its two-day policy meeting and any decision deviating from expectations could send waves through the markets. Also on Wednesday, the US Commerce Department is likely to report that the US economy grew by an annualized 3.0% in the second quarter, compared to the preceding three months’ 2.9% contraction.

On Thursday, we are likely to see a moderate jump in initial jobless claims for the week ended July 25th, but they are likely to remain in the shadow of Friday’s non-farm payrolls and unemployment rate for July. US employers are likely to have added 230 000 jobs this month, compared to 288 000 in June, while the unemployment rate is anticipated to have remained flat at 6.1%.

Also due on Friday are the Markit Economics Manufacturing PMI, projected to come out unchanged, the ISM Manufacturing Report on Business and the Reuters/Michigan Consumer Sentiment Index, both expected to have marked an improvement.

In Europe, Germanys consumer inflation for July is due to be reported on Wednesday, preceded by consumer confidence and business climate and expectations within the Eurozone.

Due on Thursday is Britains GfK Consumer Confidence, poised to show a second month of advance, followed by the Nationwide House Price Index, which is expected to have gained at a slower pace compared to June.

To be released later in the same day are retail sales and unemployment figures in Germany, consumer spending and producer inflation in France, as well as the all-important consumer inflation and unemployment rate within the euro area. Manufacturing activity numbers from the single currency blocs biggest economies are due on Friday.

Top movers

The blue chip indexs top three gainers for the day were Reckitt Benckiser Group Plc, British Sky Broadcasting Group Plc and Fresnillo Plc.

Reckitt Benckiser rose by 2.56%, or 130 pence, by 8:05 GMT to 5 200 pence. The consumer goods company announced it will spin off its pharmaceutical business within the next 12 months and the newly formed company will be listed in the U.K. Reckitt Benckiser also reported a 4%-jump in sales in the second quarter, excluding its pharmaceutical business, matching analysts predictions.

British Sky added 1.66%, or 14.50 pence, to trade at 889.00 pence at 8:14 GMT. Fresnillo was up 1.39%, or 12.75 pence, at 933.25 pence.

The days top three losers were Aberdeen Asset Management Plc, Royal Bank of Scotland Group Plc and Hargreaves Lansdown Plc. Aberdeen AM fell by 3.20%, or 14.70 pence, to 444.70 pence by 8:15 GMT, while Hargreaves Lansdown declined by 1.12%, or 12.00 pence, to 1 056.00 pence.

Royal Bank of Scotland lost 2.36%, or 8.60 pence, to trade at 355.65 pence. The state-backed lender could claw back millions of pounds in bonuses from staff working at its restructuring division after a report showed the bank handed bonuses worth 17 million pounds.

Elsewhere in the U.K. stock market, Glaxosmithkline rose by 0.69% to 1 432.75 pence as the companys CEO brought up the possibility of splitting up the group as he attempts to restructure Britains largest drug-maker.