FTSE 100 Live: Credit Suisse outflows haven’t stopped; UK ‘recovery not guaranteed’

FTSE 100 weaker as oil stocks struggle, JD Sports Fashion up 2%

The FTSE 100 index is struggling today as investors ready for a big week of corporate earnings on both sides of the Atlantic.

Wall Street’s Microsoft and Facebook owner Meta Platforms and Barclays, Unilever and Associated British Foods in the UK are among the heavyweights due to provide insight into current trading conditions and prospects for 2023.

As well as the corporate updates, US first quarter GDP numbers on Thursday will highlight how the rapid tightening in Federal Reserve monetary policy is impacting demand.

With more interest rate rises forecast, the worry is that the world’s largest economy will start shrinking and have a knock-on effect on demand for goods around the globe.

Susannah Streeter, head of markets at Hargreaves Lansdown, said today: ‘’A forecast deterioration in the health of the global economy is weighing on minds, pushing equities lower as investors mull the impact of further punishing rate hikes.”

Oil prices have reflected the uncertain outlook in recent sessions, with last week’s 6% slide for Brent crude futures followed by another dip today.

This put BP and Shell under more selling pressure as the commodities-heavy FTSE 100 index weakened 12.87 points to 7901.26. The biggest top flight fall came from mining giant Glencore, which eased 7.35p to 483.55p after last week’s production update.

With Asia markets also enduring a lacklustre session, there was more pressure on London-listed insurer Prudential. Its shares fell 3p to 1148.5p even though Deutsche Bank backed the Hong Kong-based company with a new price target of 1550p.

They noted that the stock had only risen 2% so far this year, despite the re-opening of the China border and the benefit of a generally stronger equity market.

On London’s blue-chip risers board, an upbeat note from Jefferies ahead of the UK banking results season benefited shares in Lloyds Banking Group as the lender lifted 0.3p to 49.2p.

Retailers also enjoyed a robust session, with JD Sports Fashion up 2% or 3.05p to 168.35p and Next 84p stronger at 6878p.

The UK-focused FTSE 250 index edged up 29.84 points to 19,299.85, led by a rise of 3% or 86p to 2864p for Wizz Air after analysts at Citigroup upgraded the low-cost airline.