London stocks slip as interest rate angst persists; ex-div stocks weigh

  • Crest Nicholson down, flags slowdown worries
  • FirstGroup jumps after FY revenue beat
  • FTSE 100 down 0.3%, FTSE 250 off 0.2%

June 8 (Reuters) – British equities fell on Thursday, as sentiment round world interest charges remaining increased for an extended interval pressured stocks, whereas Vodafone and Sainsbury going ex-dividend contributed to losses.

The internationally-focused FTSE 100 (.FTSE) slipped 0.3%, whereas the domestically-focused FTSE 250 (.FTMC) midcap index misplaced 0.2%.

Surprise rate hikes by the Bank of Canada and the Reserve Bank of Australia this week have spooked traders globally, sparking issues that main world central banks might persist with their rate tightening cycles for longer.

“The headwind from tighter monetary policy and generally tighter financial conditions is building up again,” stated Andrea Cicione, head of analysis at TS Lombard.

Cicione stated the shock hikes by the RBA and BoC doubtlessly give extra incentive for the Bank of England to hike once more.

Traders have practically totally priced in a 25-basis level hike by the BoE in two weeks time.

Growing rate hike bets pushed the pound practically 1% increased, additional pressuring the exporter-heavy FTSE 100 index.

Vodafone Group (VOD.L) and Sainsbury (SBRY.L) had been amongst prime decliners, falling 5.5% and 3.8% respectively, as the telecom agency and Britain’s second-largest grocery store chain traded with out the entitlement for dividend.

Homebuilder Crest Nicholson Holdings (CRST.L) dropped 7.1% after warning of additional slowdown within the British housing market.

The broader homebuilders index (.FTNMX402020) shed 0.9%.

Precious steel miners (.FTNMX551030) and chemical substances (.FTNMX552010) had been the worst-hit sectors, dropping 1.4% and 1.7% respectively.

Stubbornly-high inflation, jitters round extra rate hikes and issues a couple of worsening world financial setting have saved London stocks range-bound following in depth losses final month.

Among particular person movers, FirstGroup (FGP.L) jumped 13.9% after the transport operator beat annual revenue forecasts.

Investors now await knowledge on the UK’s labour market, financial development and month-to-month industrial and manufacturing output subsequent week to gauge the state of the financial system and the coverage tightening path.

Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru; Editing by Rashmi Aich, Sonia Cheema and Jonathan Oatis

Our Standards: The Thomson Reuters Trust Principles.

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