Weekly review

The FTSE 100 ended the week up 63.96 points to 6,894.60 points.

Equity view

Retirement housebuilder McCarthy & Stone reported a rise in revenue in the year to the end of August but said there has been evidence of some weakness in the secondary housing market since its update at the end of June.

British online retailer ASOS has finalised a global settlement with two companies over a trade mark infringement.

Low-cost carrier Ryanair reported 11% growth in traffic in August.

Trading at Segro since the end of June had seen occupational demand remain strong. The property developer´s vacancy rate remained low and the firm saw net absorption of existing space.

Passenger transport operator Go-Ahead Group posted its preliminary full-year results for the year to 2 July on Friday, with its overall results slightly ahead of management expectations.

Shares in Merlin Entertainments dropped sharply on Thursday afternoon as reports of a Smiler roller coaster scare at its Alton Towers theme park, which only recently reopened after a crash that left five customers seriously injured.

The first British Airways flight in four years took off from London on Thursday in the latest symbol of thawing relations between the west and Iran after the lifting of sanctions.

BP has signed a second production sharing contract (PSC) for shale gas exploration, development and production with China National Petroleum Corporation (CNPC).

Although third quarter sales slowed moderately, Safestore said adjusted earnings for the full year are likely to be "slightly ahead" of current market expectations.

AstraZeneca announced on Thursday morning that it has completed its commercialisation agreement with Aspen Global Incorporated, for rights to its global anaesthetics portfolio outside the US.

FTSE 250 recruiter Hays reported a rise in profit for the year to the end of June as net fee grew and the company said it was too early to gauge how Brexit will affect the business.

Petroneft saw production at one of its two licenses decline and reported that a major step out well had come up dry and would be plugged.

HSS Hire Group reported a smaller loss in the first half of the year and said trading in the third quarter was ahead of last year, but analysts and investors remained cautious.

Inland Homes has refinanced part of its bank debt at improved terms and completed the purchase of a 13-acre regeneration project in Hertfordshire on the site of Tesco's former headquarters.

Satellite services group Inmarsat said on Wednesday that it has launched a bond offering of up to $600m.

Pub operator Punch Taverns reported a rise in average profit per pub for the 52 weeks to 20 August, with like-for-like net income growth in the core estate.

FTSE 250 builders merchant Grafton Group posted a rise in first-half pre-tax profit as revenue grew thanks in part to strong growth in the Netherlands and Ireland, but the company warned of a challenging backdrop in UK merchanting.

Chemring reported a jump in revenue for the third quarter and said its expectations for the full year remain unchanged.

Ladbrokes said on Wednesday that revenue at Gala Coral, with which it has agreed to merge, rose in the third quarter, but the bookmaker’s loss widened due to exceptional costs.

Marine services group James Fisher said it expected to return to growth in the second half and produce "a good improvement" in the full year as new contracts and acquisitions aid the revival after further falls in revenue and profits in the first half.

A new dash into sports betting and strong casino winnings lifted first-half results from 888 Holdings, helping to make up for its failed plot to buy William Hill.

Oil services company Petrofac said it made a $12m first half net profit compared with a $182m loss in the same period last year.

Distribution and outsourcing group Bunzl reported a rise in first-half profit as revenue grew and the company lifted its interim dividend following a number of acquisitions.

The Samarco dam disaster at a mine part-owned by BHP Billiton in Brazil last year that killed 19 people was caused by construction and design flaws , according to a review conducted by a panel of experts.

Economic news

Activity in the UK construction sector moderated in August, according to data from Markit on Friday. The Markit/CIPS UK construction purchasing managers’ index rose to 49.2 from July’s 85-month low of 45.9, beating economists’ expectations for a reading of 46.1.

Activity in the UK manufacturing sector improved more than expected in August, according to data released on Thursday. The Markit/CIPS UK manufacturing purchasing managers’ index climbed to a ten-month high of 53.3, recovering from the 41-month low of 48.3 in July following the EU referendum. Economists had been expecting a reading of 49.0.

The UK is ideally seeking tariff-free access to the EU single market and controls on immigration, Brexit secretary David Davis said on Thursday.

As UK consumers shrugged of any Brexit anxiety in August with an increase in spending, businesses reported a dip in confidence, a survey showed on Wednesday. The Lloyd’s business barometer, which measures business confidence, fell 13 points in August from July to 16%.

British shoppers have regained their confidence since the Brexit vote, after an initial sharp fall. Encouraged by low interest rates, consumers are put off saving and are spending instead, according to GfK’s consumer confidence index.

UK house price growth accelerated in August as demand continued to outstrip the supply of properties for sale, according to Nationwide on Wednesday.

Britons looking to buy a home displayed more caution in the month following the Brexit vote, although lending to businesses held up well. Total lending to individuals grew by 0.3% month-on-month or £3.8bn to hit £1,496.4bn, the Bank of England said.

International events

US non-farm payrolls rose 151,000 jobs in August, compared to expectations of 180,000, the Labor Department revealed. The unemployment rate held at 4.9%, missing forecasts for a drop to 4.8%.

The US trade deficit narrowed in July as exports improved, according to the Commerce Department. The trade gap narrowed 11.6% from a month earlier to a seasonally adjusted $39.47bn.

US factory orders rose 1.9% in July, less than the 2% increase expected and following a downwardly revised 1.8% drop in June, the Commerce Department revealed.

The International Monetary Fund said it is likely to downgrade global growth forecasts for 2016 again due to waning demand and investment, and rising inequality.

Markit’s final US manufacturing purchasing managers’ index fell to 52. 0 in August from 52. 9 the month before and the flash estimate of 52. 1.

Growth in the US economy’s manufacturing sector slipped a lot more than expected in August, moving into contraction territory, according to figures from the Institute for Supply Management.

US initial jobless claims rose less than expected last week, the Labor Department revealed on Thursday.

China's official manufacturing purchasing managers’ index rose to 50.4 in August from 49.9 a month earlier, moving above the 50 level that separates an expansion from a contraction in sector activity.

The Caixin China manufacturing PMI, a separate private gauge of activity in the sector, dropped to 50.0 in August from 50.6 in July.

US pending home sales rose more than expected in July, but June’s figure was revised down, according to data from the National Association of Realtors.

The US labour market continued to create jobs at a steady pace in August, according to the results of a widely-followed survey. Consultancy ADP´s gauge of private sector payrolls revealed that 177,000 new posts were created last month.

Inflation in the eurozone came in lower than expected for August, according to a flash estimate by Eurostat, which could prompt the European Central Bank into action. Inflation was stable compared with July at 0.2%, which was below economists’ expectations of 0.3%.

The eurozone unemployment rate was unchanged at 10.1% in July, according to the latest figures from Eurostat, missing analysts’ expectations.

Eurozone economic confidence fell in August to 103. 5 from 104. 5 in July, more than the estimated 104. 1 fall.

The US Federal Reserve vice chairman Stanley Fischer has said that any decision taken on interest rates must be taken based on economic data.