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Market Analysis

London's FTSE 100 Declines as Broader Market Weakness and Investor Caution Prevail
Amos Simanungkalit · 7.2K Views

15

 

London stocks edged lower on Friday, following a broader market decline as investors awaited a critical U.S. jobs report. Despite the downturn, rising commodity prices helped mitigate the losses.

The FTSE 100 index, which had its worst performance in over three months on Thursday, fell 0.4%. The FTSE 250 index was down 1.2% by 0712 GMT. However, both indexes are set to end the week with gains, buoyed by positive corporate earnings.

The focus is on U.S. nonfarm payrolls data, coming after weak manufacturing figures from Thursday raised concerns about a potential economic slowdown and impacted global investor sentiment.

In London, investment banking and brokerage stocks dropped 1.8%, following a 1.1% decline the previous day. Personal goods stocks, including Burberry, fell over 1% after Italian rival Salvatore Ferragamo reported a 41% drop in its first-half operating profit.

On a positive note, precious metal miners saw a 0.7% increase as gold prices rose due to safe-haven buying and speculation of a potential September rate cut in the U.S.

Banks continued their downward trend with a 0.8% loss, extending Thursday's declines. The sector experienced its worst day since February 2022 after the Bank of England's quarter-point rate cut and a reduced net interest income forecast from French lender Societe Generale.

The Bank of England's decision to lower interest rates for the first time since 2020, down from a 16-year high, was accompanied by a cautious stance on further reductions.

IAG Group saw a 3.85% increase, leading the FTSE 100, after British Airways' parent company scrapped its proposed acquisition of Spain's Air Europa due to regulatory concerns.

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.

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