Miners and Retailers Pull FTSE Lower: UK Index Spread Trading
Financial Market Comments from Yusuf Heusen, Senior Sales Trader, IG Index.
The FTSE opened in sharp decline today and by mid-morning was trading around 60 points down.
The FTSE had pared almost half of yesterday’s gains by 10am, as retailers and miners weighed heavily on the index.
A proposed increase in value-added tax set retailers back this morning, with Burberry Group (-4.36%), Marks & Spencer (-2.50%) and NEXT (-2.17%) all in retreat for the morning.
M&S said in a statement that it was ‘cautious’ about consumer spending prospects looking forward, after Q1 sales growth slowed compared with the previous quarter.
The reported 3.6% growth rate was still considerably better than the 2.3% median estimate, but was down on the previous quarter’s 5.1% increase.
Miners were also dragging the FTSE down the well, with Kazakhmys (-3.71%), Vedanta Resources (-3.24%) and Rio Tinto (-2.30%) all losing ground.
Retreating metal prices were at the root of the slide, with copper, lead and nickel prices all falling on the London Metals Exchange.
At the other end of the line, Sainsbury’s and BP were among only a handful of London’s blue chips in the black, up 10.70p (+3.26%) and 11.50p (+3.33%) respectively.
By 10am the FTSE was trading at 4904.42, down 60 points on the day, and after the biggest gain on the index in five weeks yesterday, a quick return to the 5000 level seems to have been put on hold for now.
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Good Luck!
DB
The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.
Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.
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