FTSE 100 trades lower led by a decline in retail and housing stocks

Highlights 

  • FTSE100 trades in the red, down by 0.22% at 7,062, while mid-cap focused FTSE250 index was at 23,670, down by 0.67%.
  • Crude oil price is trading at two months high and on track for the third straight week of gain following output disruption in the US and failure of OPEC+ nation to boost output.

FTSE 100 trades lower on Friday first half, down by 0.22% at 7,062, while mid-cap focused FTSE250 index was at 23,670, down by 0.67%. The decline in the blue-chip index was led by retail and housing stocks. Retail-chain operator JD Sports Fashion plc was down by over 2% after Nike cut its sales guidance for upcoming quarters due to supply chain disruption and factory closure in Vietnam due to the pandemic. Major housing stocks in the UK are also trading downward, like Barratt Developer Plc (down by 1.79%). Investors are taking a cautious bet on the real estate stocks following the Evergrande Group crises. Evergrande crisis has left global investors speculating on whether the company will be able to make interest payments to bondholders.        

Top five FTSE100 gainers

Rolls Royce Holdings Plc (4.49%), AstraZeneca plc (2.11%), International Consolidated Airlines Group SA (1.96%), Compass Group plc (1.57%), Reckitt Benckiser Group Plc (1.23%)

Top five FTSE100 losers

Rentokil Initial Plc (-3.18%), Rightmove plc (-2.53%), Croda International plc (-2.53%), Bunzl plc (-2.44%), Halma plc (-2.26%)

European Markets

Major European market indexes are trading in the red zone. The German blue-chip DAX index is down by 0.82% at 15,514, while the benchmark index of France, CAC 40, was at 6,629, down by 1.09%. European markets are trading downward after mid-week rallies as fear of default by the Evergrande Group kept investors worried, leading to some profit booking on Friday.

Currency Market

The pound trades lower against the dollar at 1.3707, down by 0.07%, while the EUR/ GBP currency pair traded at 0.8561, up by 0.09%. The pound saw profit booking from traders after yesterday’s rally following the Bank of England’s hawkish tone on the government bond buying scheme and interest rate.

Commodities

WTI crude oil future contract traded at USD 73.45, up by 0.20%, while the Brent crude oil trades at USD 77.52, up by 0.35%. Crude oil price is trading at two month high and on track for the third straight week of gain following output disruption in the US due to Hurricane strike on the Gulf of Mexico. As per industry experts, the disruption might take a longer time to restore. Also, ease in lockdown restrictions globally has boosted the demand for fuel. However, OPEC+ nations are unable to increases the crude oil output due to delays in site maintenance work.

Meanwhile, the Gold futures contract traded in the green, up by 0.31% at USD 1,755 per ounce.

Asian Markets

Major Asia Pacific indexes made a mixed closing. Shanghai Composite of China closed at 3,613, down by 0.80%, while India’s Nifty 50 closed at 17,853, up by 0.17%. Australia’s ASX200 closed at 7,342, down by 0.37%, while Nikkei 225 of Japan was up by 2.06% at 30,248. Hang Seng index closed at 24,192, up by 1.30%.

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