- The headline FTSE 100 is likely to open on a negative footing on Friday
- The futures linked to FTSE 100 were trading 0.13 per cent, lower
- Nasdaq’s 1 per cent drop weighed on the global market sentiments
The headline FTSE 100 is likely to open on a negative footing on Friday, 4 June, tracking the subdued Asian peers with most of the major stock indices hovering in red. The lackluster Wall Street on Thursday also weighed on the global market sentiments with the tech leader Nasdaq Composite falling a little more than 1 per cent.
The futures linked to FTSE 100 were trading 0.13 per cent, lower, indicating a negative beginning to the London equities. Earlier yesterday, the Dow Jones Industrial Average ended marginally lower at 34,577.04, down 0.06 per cent, the wider share indicator S&P 500 lost 0.36 per cent to end at 4,192.85, while the Nasdaq Composite dropped 1.03 per cent to finish at 13,614.51.
The positive developments across the regions in the United Kingdom have failed to uphold the equity confidence with the benchmark FTSE 100 losing control on Thursday, snapping the two-day rally of June. The index concluded at 7,064.35, down 0.61 per cent, or 43.65 points from the previous close of 7,108.
Among the major Asian markets, Nikkei 225 of Japan shed 0.40 per cent to 28,941.52, China’s Shanghai Composite traded 0.07 per cent lower at 3,581.70, Hang Seng of Hong Kong tripped 0.46 per cent to 28,833.96, South Korea’s Kospi dipped 0.27 per cent to 3,238.63, while India’s Nifty 50 fell 0.12 per cent to 15,671.40.
Earlier in the day, the ASX 200 of Australia rallied 0.49 per cent to end at 7,295.40, registering a weekly gain of 1.6 per cent.
With the improving business dynamics in the UK with the next set of phased easements due in the present month, the market participants have seemingly developed a meaningful optimism. The recent macroeconomic indicators have thoroughly supported the economic recovery. The FTSE 100 ended May with a cumulative gain of 0.76 per cent, partly defying the trend of ‘sell in May and go away’.
Going forward, the Downing Street administration will be removing the mixing limits in gathering in the fourth stage of reopening. From 21 June, the authorities will be allowing large events in the country. All the other sectors that were not allowed to restart in Stage 3 of reopening will be given go-ahead including the night clubs. All this will be done after a detailed probe of the persisting Covid activity and the vaccination status.