FTSE 100 gives up gains as jitters ripple across the Atlantic
The FTSE 100 has slumped this morning and given up much of its gains through the week after jitters rippled across the Atlantic from the US overnight.
The FTSE 100 has slumped this morning and given up much of its gains through the week after jitters rippled across the Atlantic from the US overnight.
However, the FTSE 100 tumbled beyond one per cent in early trading today to around 7,902 after a negative mood dictated trading in the US yesterday.
“The FTSE 100 has gone backwards on its last trading day of the week, as investors digest PMI data as well as a downbeat tone over in the US,” said Sophie Lund-Yates, an equity analyst at Hargreaves Lansdown.
“The major indices all shed between 1.2-1.4 per cent on Thursday, with broad based declines suggesting the malaise is a widespread mood problem, rather than a sector specific issue.”
FTSE 100 takes lead from US markets
Airline EasyJet and gambling firm Entain were the fastest fallers on London’s blue-chip index, with both tumbling beyond three per cent.
Major US indices fell sharply overnight, with the Dow Jones shedding 1.35 per cent to 38,596.98, the S&P 500 decreased by 1.23 per cent to 5,147.21, and the Nasdaq Composite slid 1.4 per cent to 16,049.08 points.
Notably, the technology sector within the S&P 500 saw a notable 1.7 per cent decline, while defense-related companies like Lockheed Martin gained.
Investors are now looking ahead to US job data today which is will shine a light on the strength of the labour market.
“The narrative around the potential for interest rate cuts has been slightly contradictory this week, so there’s a lot resting on this data to help steady the ship,” Lund-Yates said. “A looser labour market could help back the argument that the economy is returning to more stable footing.”
