The U.K.'s benchmark stock index headed for its lowest level in more than six weeks on Monday, as nervousness about the prolonged U.S. government shutdown and debt ceiling talks hammered investor sentiment globally.
The FTSE 100 index lost 0.3% to 6,437.38, on track for its weakest closing level since August 21.
Shares of Marks & Spencer Group PLC (MAKSF.NaE) posted one of the biggest losses in the index, down 2.8%, after Credit Suisse cut its general merchandise same-store second-quarter sales forecast for the retailer to negative 1.5% from 0.5%.
More broadly, banks and resource firms were among sectors on the decline, with the selling sparked by nervousness in the U.S. The government shutdown moved into its seventh day amid continued budget wrangling as law makers over the weekend failed get closer to an agreement. Republicans are trying to tie the budget discussions to a forthcoming debate on how to avoid breaking through the country's looming debt ceiling. House Speaker John Boehner said Sunday he wouldn't bring up bills to fully reopen the government or increase the country's borrowing limit unless Democrats agree to broader talks aimed at trimming the deficit.
Among banks on the decline, Lloyds Banking Group PLC (LYG.NaE) gave up 1%, HSBC Holdings PLC (HBC.NaE) dropped 0.6% and Royal Bank of Scotland Group PLC (RBS.NaE) lost 0.6%.
Oil firms moved lower, tracking oil prices. Royal Dutch Shell PLC (RDS/A.NaE) erased 0.7% and BG Group PLC (BRGXF.NaE) fell 0.3%.
Among mining firms on the decline, shares of Anglo American PLC (AAUKF.NaE) lost 0.6%, Rio Tinto PLC (RIO.NaE) fell 0.5%, BHP Billiton PLC (BBL.NaE) eased 0.4%. Most metals prices were lower.
Shares of Fresnillo PLC (FNLPF.NaE) added 1.6% after UBS lifted the miner to buy from neutral. The analysts said the recent share-price weakness could be used as a buying opportunity.
Link: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/details.page?resId=201310070931MRKTWTCHNEWS_SVC_D9C2FD1C-2F49-11E3-A2F6-00212803FAD6&requestId=1&showChain=true&FullArticle=true
No comments:
Post a Comment