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Summary
- UK shares staged a moderate recovery in the terminal trades
- Positive macroeconomic data apparently fell short to gather investors’ confidence
- FTSE 100 closed at 7,070.58, down 0.53 per cent, after touching a low at 7,013.85
UK shares staged a moderate recovery in the terminal trades with the FTSE 100 bouncing back in line with Wall Street, but the benchmark index ended in the negative region following the steep declines in the large-cap shares. The headline FTSE 100 has snapped the two-day winning streak in June as heavyweight stocks cracked even after the promising macroeconomic data.
The IHS Markit/CIPS UK Services PMI in May 2021 jumped to 62.9, registering the fastest growth rate in the last 24 years. The sharp uptick in the Services PMI has been largely recognised due to fewer pandemic-induced restrictions in place and the elevated spending by the consumers, as well as the business, the Markit/CIPS survey showed.
Also Read | How UK’s Services Sector Made Its Strongest Recovery in May Since 1997
On the other hand, the UK Composite PMI survey conducted by IHS Markit/CIPS came in at 62.9 in May 2021. This has been the highest rate of expansion since January 1998, the time when the series was started in the United Kingdom. The sharp rate has been duly supported by the output growth in manufacturing and service sectors, along with the increased spending capacity.
The positive macroeconomic releases may have helped the investors in regenerating the confidence but the constructive data fell short to gather the market participants in instigating a buying momentum.
According to the data available with the London Stock Exchange, FTSE 100 closed at 7,070.58, down 0.53 per cent, from the previous close of 7,108. During the day, the key index shuttled between a broad range of 7,108.04 and 7,013.85.
FTSE 100 (3 June)
Image Source: EODHD/Others
All the three market capitalisation-based stock indices settled in red, in a largely similar manner.The mid-cap reflector FTSE 250 concluded at 22,802.40, down 0.57 per cent, while FTSE 350 and FTSE All-Share lost 0.61 and 0.50 per cent , respectively.
Meanwhile, all the three indices of Wall Street oscillated in red with the tech benchmark Nasdaq Composite leading the losses. According to NYSE, Dow Industrials recoiled marginally to 34,629.18, up 0.08 per cent, whereas S&P 500 and Nasdaq Composite tripped 0.26 and 0.90 per cent.
