FTSE 100 set to open lower as macro factors weigh

June 18, 2021 08:48 AM BST | By Abhijeet
 FTSE 100 set to open lower as macro factors weigh
Image source: Who is Danny, Shutterstock.com

Summary

  • 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.

Also Read | APAC markets a mixed bag; commodity price swings in focus

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.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.


Sponsored Articles


Investing Ideas

Previous Next