- UK shares set to start on negative zone following the tepid trade in Asian peers
- September futures tied to benchmark FTSE 100 fell 1.06%
- the retail sales in the UK fell 1.4% in May 2021 as compared to previous month
UK shares are highly likely to start on a negative footing on Friday, 18 June, following the tepid trade in Asia Pacific markets and the less supportive macroeconomic data. The mixed closing on Wall Street with the Dow Industrials and broader S&P 500 ending in red has punched down the partially regenerated momentum.
However, the tech leader Nasdaq Composite gained nearly 1% before closing 0.87% higher at 14,161.35, duly supported the technology companies ahead of beginning of next quarterly earning season.
The September futures tied to the benchmark FTSE 100 traded at 7,075.5, down 1.06%, indicating a negative beginning to the London equities.
Meanwhile, Asia Pacific stock indices saw a mixed-bag of trade with Australia’s ASX 200 finishing marginally higher at 7,368.90, up 0.13%. Nikkei 225 of Japan slipped 0.19% to 28,964.08, Shanghai Composite of China shed 0.14% to 3,525.10, Kospi of South Korea added 0.09% to 3,267.93, Hong Kong’s Hang Seng gained 0.60% to 28,729.58, while India’s Nifty 50 dropped 0.60% to 15,598.75.
Earlier yesterday, the headline FTSE 100 finished marginally lower at 7,153.43. The market index has registered straight gains on the first three trading days of this week, while a moderate dip for two days can steer the index to close flat on a weekly basis. The index has advanced nearly 2% in the present month, overcoming the widespread jittery in the month of May.
Among the major macroeconomic indicators, the retail sales in the UK fell 1.4% in May 2021 as compared to the volume of total sales recorded in the previous month. However, there has been an annual rise of 24.6% as compared to the similar period a year ago. The market participants have been eyeing for some concrete data that can bolster the prospects of the ongoing economic recovery, at a time when UK has precautionarily deferred the Step 4 of reopening due to rising cases associated with the Delta variant.
The April of 2021 has been one of the most significant months for gauging the retail sales as most of the outdoor settings were allowed to open after a long time with consumers splurging on shopping. A clear drop in the online sales was seen with the volume falling by 4.2% as most of the non-essential retail stores reopened in May, effectively dividing the consumers between offline and online markets.