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Highlights
- FTSE 100 continues to trade lower on China’s energy crisis
- Crude oil prices are trading under pressure following reports that the OPEC+ nations might boost crude oil output at its meeting on Monday.
FTSE 100 trades lower on the first day of a new month, declining by 0.41% at 7,057, while mid-cap focused FTSE 250 index was at 22,992, down by 0.15% in the afternoon deals at 1:30 pm GMT+1.
The blue-chip index though has recovered some ground after morning sell-off, which even dragged the index below the 7,000 levels. The energy crisis in China has kept investors worried across the globe, which led to a flash fall in the global stock market.
Meanwhile, on the domestic front, the UK reported a decline in the manufacturing PMI for the fourth month in a row. The IHS Markit/CIPS manufacturing PMI reading was at 57.1, the lowest number since February 2020, when the lockdown started.
Top five FTSE100 gainers
International Consolidated Airlines Group SA (3.97%), Rolls Royce Holdings Plc (2.40%), Compass Group plc (2.13%), ITV plc (1.92%), Pearson plc (1.85%),
Top five FTSE100 losers
Lloyds Banking Group plc (-3.16%), AstraZeneca plc (-3.06%), Evraz plc (-2.89%), Hikma Pharmaceuticals (-2.86%), B&M European Value Retail SA (-2.51%),
European Markets
Major European market indexes are also trading in red. The German blue-chip DAX index is down by 0.21% at 15,228, while the benchmark index of France, CAC 40, was at 6,515, down by 0.02%. Inflation in the Eurozone rose to 3.4% in September 2021, ahead of the market estimate of 3.3%. The current inflation rate in Eurozone is at the highest levels since September 2008, primarily due to a surge in energy prices and supply chain disruption. As per market experts, inflation is anticipated to rise further near to 4% by the end of this year, which is twice the target set by the European Central Bank.
Currency Markets
The pound continues to trade higher against the dollar at 1.3565, up by 0.69%, while EUR/ GBP currency pair traded at 0.8551, down by 0.51%. As per market experts, the pound looks attractive compared to other currencies as the Bank of England may become the first central bank amongst major economics to take steps towards a rate hike. Also, there are expectations that the central bank could start tapering the bond buying program as early as November 2021.
Commodities
WTI crude oil future contract traded at USD 75.19, up by 0.15%, while the Brent crude oil traded at USD 78.56, up by 0.28%. Crude oil prices trade marginally higher, covering the morning downfall following reports that the Organization of the Petroleum Exporting Countries (OPEC) nations are planning to increase crude oil output to ease the current supply crisis globally.
OPEC+ nations will be holding its all-important meeting on 4 October 2021. The rise in the crude oil output might put downward pressure on the crude oil prices.
Meanwhile, the gold futures contract traded in the green, up by 0.02% at USD 1,757 per ounce.
Asian Markets
Major Asia Pacific indexes closed in the red. Australia’s ASX200 closed at 7,185, down by 2.00%, while Nikkei 225 of Japan was down by 2.31% at 28,771. India’s Nifty 50 closed at 17,532, down by 0.49%. China and Hong Kong stock markets remain closed today due to national holidays.
