Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Indexes  >  FTSE 100 Index    F100   GB0001383545

News SummaryAll newsNews of the components ofTweets

LONDON MARKETS : FTSE 100 Closes At 6-week Low As Retailers Fall, Pound Rises

share with twitter share with LinkedIn share with facebook
share via e-mail
11/10/2017 | 06:54pm CET

By Carla Mozee, MarketWatch

Pound crosses above $1.32

U.K. stocks dropped Friday, with retailers and energy producers among those that lost ground, sending the London gauge of blue-chip stocks to its lowest close since late September.

Equities also felt the weight of a rising pound.

What markets are doing: The FTSE 100 index slumped 0.7% to 7,432.99, the lowest close since Sept. 29, FactSet data showed. No sector managed a gain, while the health care and telecom sectors printed the biggest losses. On Thursday, the benchmark fell 0.6% .

For the week, the London benchmark fell 1.7%, the biggest such decline since mid-September. The index on Nov. 6 was driven up to a record close.

This week "there's been a dry-as-bones economic calendar and that's given investors a moment to pause, look at where the markets and reassess...maybe they shouldn't be quite as high as they are," said Connor Campbell, financial analyst at Spreadex, in an interview.

"Last week with the Bank of England, the Federal Reserve, nonfarm [payrolls], it was almost pure reaction and now this week investors have had time to reflect and that's not necessarily a good thing for the market," he said.

The pound late Friday traded at $1.3203, up from $1.3137 late Thursday in New York.

The yield on the 10-year gilt rose 7 basis points to 1.34%.

Also check out:Is British leader Theresa May on her way out? Why that's the fear--and why it matters

Retail pain continues: A tough week for retail stocks continued Friday, after the release of research that showed British consumer spending is slowing.

Burberry (>> Burberry Group) (>> Burberry Group) fell 2.3%, with UBS downgrading its shares to neutral from buy. The stock on Thursday tumbled 10% after the British luxury goods retailer warned it doesn't expect sales growth until fiscal 2021 .

Marks & Spencer Group (>> Marks & Spencer Group) slumped 1.9% on Friday, leaving its shares down 2.8% for the week. Next PLC (>> Next) turned higher to close up 0.2%, but they ended the week down 2.1%.

What's moving markets: U.K. industrial and manufacturing figures came in stronger than anticipated, giving a boost to the pound against the U.S. dollar. Industrial output expanded by 2.5% in September year-over-year, said the Office for National Statistics, above expectations of 1.8%.

That propelled the pound to rise as high as $1.3230, the highest since Nov. 1. But sterling strength can hurt shares of multinational companies on the FTSE 100, as earnings made overseas by those companies can be squeezed when converted back into U.K. currency.

"Next week is busy in terms of data for the pound, with inflation and retail sales," said Campbell. He said economic figures over the past couple of months have been assessed in terms of if the Bank of England would decide to raise interest rates. The bank did lift the key rate to 0.5% from 0.25%.

"The Bank of England has [now] made it clear there's not going to be a rate hike anytime soon, so it will be interesting to see what the pound does," on next week's data, he said.

Concerns about a possible delay to tax cuts in the U.S . lingered. Those worries helped push equity markets in the U.K., in Europe and in Asia lower Friday, following a selloff in the U.S. on Thursday. The prospect of lower taxes and other stimulus put forward by the Trump administration has at times bolstered equity markets over the past year.

Stock movers: Among multinational companies, drugmakers GlaxoSmithKline (>> GlaxoSmithKline) (>> GlaxoSmithKline) and AstraZeneca PLC (>> AstraZeneca) fell 2.1% and 1.9%, respectively, and cruise operator Carnival PLC (>> Carnival) gave up 1.7%.

Shares of oil producer BP PLC (>> BP) (>> BP) and Royal Dutch Shell PLC (>> Royal Dutch Shell Plc) (>> Royal Dutch Shell Plc) fell 1.5% and 1.3%, respectively, as oil prices pulled back from two-year highs.

Retail distribution group Bunzl PLC (BZLFY) dropped 6.5% after Morgan Stanley outlined risk from Amazon.com Inc.'s (>> Amazon.com) business-to-business distribution plan.

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on FTSE 100 INDEX
12:55pLONDON MARKETS : FTSE 100 Holds Gains Above 15-month Low After Inflation Slowdow..
11:50aFTSE : 100 outperforms European peers as inflation slows
11:24aEUROPE MARKETS : European Stocks Turn Lower As Tech Stocks Weigh On U.S. Futures
10:25aLONDON MARKETS : FTSE 100 Rises Off 15-month Low Ahead Of Inflation Data
03/19FTSE : hits 15 month-low as Brexit transition deal lifts pound
03/19Micro Focus loans fall in secondary trading after poor results
03/19LONDON MARKETS : FTSE 100 Slumps As Pound Rallies On EU Agreement To Brexit Tran..
03/19Shares in Micro Focus halve after sales warning and CEO departure
03/19Activist investor Sherborne takes stake in Barclays
03/19LONDON MARKETS : FTSE 100 Slumps As Pound Rallies After EU Agrees To Brexit Tran..
More news
News of the components of FTSE 100 INDEX
12:56pDS SMITH : Economic Value Report Reveals pound sterling GBP11.5 Billion Contribu..
12:55pBritain to put brake on whiplash injury claims from car crashes
12:48pGLENCORE : Rio Tinto agrees sale of Hail Creek and Valeria to Glencore for $1.7 ..
12:45pGLENCORE : snaps up Rio Tinto's Hail Creek coal mine, project for $1.7 billion
12:37pGLENCORE : Rio Tinto Agrees Sale of Hail Creek, Valeria to Glencore for $1.7 Bil..
12:14pDIAGEO : North America's Perry Jones Named as One of Savoy Magazine's '2018 Most..
12:03pHSBC : to issue perpetual contingent convertible securities
More news
Chart FTSE 100 INDEX
Duration : Period :
FTSE 100 Index Technical Analysis Chart | F100 | GB0001383545 | 4-Traders
Technical analysis trends FTSE 100 INDEX
Short TermMid-TermLong Term
Top / Flop FTSE 100 INDEX
MICRO FOCUS INTERNATIONAL PLC 1076.25 Real-time Quote.6.45%
ITV 147.875 Real-time Quote.1.60%
RIO TINTO 3658 Real-time Quote.1.29%
EVRAZ 416.35 Real-time Quote.1.23%
BHP BILLITON PLC 1405.6 Real-time Quote.1.22%
SEVERN TRENT 1726.75 Real-time Quote.-1.05%
UNITED UTILITIES 682.6 Real-time Quote.-1.10%
MARKS & SPENCER GROUP 272.6 Real-time Quote.-1.20%
JUST EAT 720.7 Real-time Quote.-2.03%
RENTOKIL INITIAL 264.9 Delayed Quote.-4.20%
Heatmap :