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UPDATE 3-FTSE 100 firms as oil majors gain, BoE growth target cut feeds stimulus hopes

Published 06/21/2019, 12:39 AM
UPDATE 3-FTSE 100 firms as oil majors gain, BoE growth target cut feeds stimulus hopes

* FTSE 100 up 0.3%, FTSE 250 up 0.7%
* Gold touching multi-year highs lifts Fresnillo
* Carnival slumps after forecast cut
* BCA jumps after takeover interest
* Poor results and forecast hit Dixons Carphone

(Adds news item, updates with closing prices)
By Muvija M and Yadarisa Shabong
June 20 (Reuters) - London's FTSE 100 rebounded on growing
hopes of more central bank stimulus after the Bank of England
cut its growth forecast and the U.S. Federal Reserve flagged
interest rate cuts, though cruise operator Carnival slid after
lowering its profit target.
The FTSE 100 index .FTSE rose 0.3% with BP BP.L and
Shell RDSa.L both up more than 1% as Middle East tensions
drove oil prices higher. O/R
The more domestically focused midcap index .FTMC
outperformed, rising 0.7% to its highest in nearly a month. It
was led higher by a 22% surge in car auction firm BCA
Marketplace BCA.L after it received a nearly 2 billion pound
takeover bid from private equity firm TDR Capital.
The pound trimmed gains after the BoE cut its second-quarter
growth forecast to zero and highlighted risks from global trade
tensions and growing fears of a no-deal Brexit.
But exporter stocks still took a hit as sterling held on to
some earlier gains. Reckitt Benckiser RB.L , HSBC HSBA.L and
AstraZeneca AZN.L all edged lower.
The BoE statement lifted hopes of more stimulus, after the
Fed's statement late on Wednesday raised expectations that a
decade-long global rally in stock markets may not quite have run
out of steam.
"With the U.S. Federal Reserve now striking a more dovish
pose as it also sees rising downside risks in the global
economy, we shouldn't entirely rule out the possibility the next
interest rate move may be downwards," Hargreaves Lansdown
analyst Laith Khalaf said.
Precious metals miner Fresnillo FRES.L led gains with a
5.5% rise, having earlier jumped as much as 7%, as gold prices
hit their highest in more than five years after the statement.

British Airways owner IAG ICAG.L and easyJet EZJ.L were
up nearly 3%, recovering from steep falls in the last session
when HSBC cut its rating on the stocks.
But London-listed shares in Carnival CCL.L slumped 12% on
their worst day in roughly 7-1/2-years as the cruise operator
cut its profit forecast due to the Trump administration's sudden
ban on cruises to Cuba. Domino's Pizza Group Plc DOM.L jumped 11% after a media
report that the company is expected to appoint internal
candidate Andrew Rennie as its new CEO. Dixons Carphone DC.L recouped some losses to be down 5.1%
after earlier touching a decade-low, as it reported a slump in
full-year profit and pointed to worse to come as it struggles in
a fierce mobile phone retail market.
In contrast, homewares retailer Dunelm DNLM.L jumped 8.5%
to a three-year high after it raised its earnings forecast for
the second time in just over two months, while clothing retailer
N Brown Group BWNG.L advanced 3% on results.

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