Commodities drive fall as FTSE outperformed by European peers

- Advertisement -


The FTSE 100 suffered a poor session compared to its European counterparts on Monday.

Weak performance in commodity stocks dragged the index, though it closed above the day’s lows after a steady correction during the afternoon.

- Advertisement -

London’s top flight ended 0.22% or 17.32 points lower at 7,929.79.

Michael Hewson, chief market analyst at CMC Markets UK, said: “It’s been a positive start to the week for Europe’s markets, with the notable exception of the FTSE 100, which is being underpowered by basic resources after China set a 5% low.” GDP growth for this year is below last year’s target of 5.5%, which it missed by a wide margin.

- Advertisement -

“The lower-than-expected target has weighed on metals prices with a slide in copper and iron ore, weighing on the likes of Anglo-American, Glencore and Rio Tinto.”

The slowdown also came despite strong manufacturing sector PMI data for February, which marked a surprising return to significant growth amid hopes of averting a possible recession.

Europe’s markets have started the week on a positive note, with the notable exception of the FTSE 100, which is being underpowered by infrastructure resources after China set 5% GDP growth for this year, up from last year’s 5.5%. % less than the target, so that he missed by a wide margin

Elsewhere, Europe’s other main bourses closed higher amid better-than-expected economic reports, pushing the DAX to its highest close in a year.

At the close, the German DAX rose 0.49% and the French CAC 40 rose 0.34%.

In the US, major markets continued their recent positive run as bond yields remained below recent highs.

Meanwhile, sterling struggled despite encouraging construction sector data.

The pound was flat at US$1.204, and fell 0.45% to €1.126 at the market close in London.

In company news, Capita shares rose after it agreed a £21 million deal to sell its human resources businesses.

The firm said it will offload Capita Resourcing, HR Solutions and ThirtyThree to London-based private equity firm Inspire Capital as it moves forward with plans to focus on core divisions and cut its debt.

Capita ended the day up 3.52p at 42.64p.

Elsewhere, shares in Aston Martin gained further on Monday after posting strong revenue growth.

The correction in its shares during the day was linked to squeezing short-sellers, as well as a surprise podium finish for Fernando Alonso and the Aston Martin Racing team at the Bahrain Grand Prix.

Shares in Aston Martin rose 36.1p to close at 276.1p.

Ocado’s price drop came after Morgan Stanley cut its price target on the business on concerns about the delivery of customer fulfillment centres, after its US partner Kroger said it would not start any more centers in 2023.

The online grocery business was down 20.4p at 529.8p.

Oil prices declined after the Chinese government launched its clear economic growth target.

Brent crude rose 0.3% to US$85.57 (£71.04) a barrel at the London market close.

The biggest gainers in the FTSE 100 were Flutter Entertainment, up 615p at 13,975p, Land Securities, up 22.2p at 683.6p, Airtel Africa, up 3.6p at 125.2p, BT, up 3.9p at 148.75p, and Next, up 3.9p. 178p at 7,076p.

The session’s biggest fallers were Beazley, down 32.5p at 610.5p, Glencore, down 20.5p at 502.5p, Ocado, down 20.4p at 529.8p, Anglo American, down 111p at 2,931.5p, and Rio Tinto, down 172p at 5,972. But p.

Credit: /

- Advertisement -

Recent Articles

Related Stories