Global concerns weigh on financial markets
orries about the future of the economy weighed on global markets on Tuesday, sending the FTSE 100 down despite a strong performance from the owner of Premier Inn.
London’s top index had dropped 21.07 points, or 0.3%, ending the day at 7,891.13.
It came alongside falls across the pond and the channel, where markets were also struggling. Shortly after markets closed in London, New York’s S&P 500 had dipped by 0.8%, while its neighbour the Dow Jones was down 0.4%.
With so much riding on this week’s figures, caution is still the watchword. US regional banks are under pressure again too, another sign that the rally’s foundations are weakening
In Paris, the Cac 40 fell by 0.6%, while Germany’s Dax index was a rare green spot on Tuesday’s markets, gaining 0.1%.
“Investors continue to trim exposure to stocks as this week’s earnings barrage gets underway,” said Chris Beauchamp, chief market analyst at online trading platform IG.
“UPS’s forecast of a weaker economy is just the kind of warning investors don’t want to hear and has likely prompted a round of selling on renewed recession fears.
“With so much riding on this week’s figures, caution is still the watchword. US regional banks are under pressure again too, another sign that the rally’s foundations are weakening.”
On currency markets, the pound dropped 0.7% to 1.24 dollars but stayed fairly flat against the euro at around 1.13.
In company news, Whitbread shot to the top of the FTSE table as it revealed full-year figures ahead of expectations.
The Premier Inn owner said profit had hit £375 million in the year to the start of March on revenue of £2.6 billion, up 54% from the Covid-hit prior year.
Shares in the business hit the top of the FTSE, up 4.3%.
Meanwhile Ocado said it would shut its oldest distribution centre in a shift to robotic warehouses. Around 2,300 workers will be impacted by the move.
The Hatfield, Herefordshire, site will close later this year, the online supermarket said. Shares dipped more than 2% following the news.
The biggest risers on the FTSE 100 were Whitbread, up 133p to 3,259p, Imperial Brands, up 39.5p to 1,989.5p, Entain, up 27p to 1,439p, Vodafone, up 1.6p to 91.28p, and GSK, up 26.2p to 1,500.2p.
The biggest fallers on the FTSE 100 were AB Foods, down 86.0p to 1,984p, Glencore, down 17.4p to 469p, Anglo American, down 86.0p to 2,426p, Dowlais Group, down 4.3p to 125p, and Rio Tinto, down 156.5p to 4,984.5p.
Read More: Global concerns weigh on financial markets
2023-04-25 16:25:30