London stocks reverse gains as financial and energy stocks dip; Vodafone slides
Reuters
Published May 16, 2023 08:58
Updated May 16, 2023 17:17
By Johann M Cherian and Shashwat Chauhan
(Reuters) -Britain's FTSE 100 erased earlier gains and closed lower on Tuesday, as losses in financial and energy stocks coupled with weakness in China-exposed firms weighed, while Vodafone Group (LON:VOD) shares tumbled after it forecast a big drop in fresh cash flow.
The blue-chip FTSE 100 dipped 0.3%, while the FTSE 250 midcap index eked out a meagre 0.1% gain.
Vodafone Group slumped 7.4% to become the top decliner on the FTSE 100 and post its worst day in two years after the company announced job cuts and forecast a 1.5 billion euro ($1.65 billion) decline in free cash flow this year.
China-exposed firms, like insurer Prudential (LON:PRU) and HSBC (LON:HSBA), fell 2.4% and 0.9%, respectively, after China's April industrial output and retail sales growth undershot forecasts, suggesting the economy lost momentum at the beginning of the second quarter.
"There's concern about the fact that the post pandemic snapback in China seems to be losing elasticity," said Susannah Streeter, head of money and markets at Hargreaves Lansdown (LON:HRGV).
"That is having a bit of a knock-on effect in the London market ... if there is weakness seeping through that doesn't necessarily bode well for demand."
Energy stocks fell 1.2%, tracking lower oil prices. [O/R]
Miners of both industrial and precious metals slipped 1.0% and 1.3%, respectively, as global metal prices slipped. [GOL/] [MET/L]
British banks fell 0.7% after two straight days of gains.
The pound edged lower after data showed UK unemployment unexpectedly rose in the first quarter. [GBP/]
UK stock indexes have mostly traded in tight ranges this month weighed down by a slide in commodity-linked stocks amid concerns about a weak economic recovery in top consumer China and a U.S. debt ceiling deadlock.
Land Securities Group rose 2.4% after the real estate firm beat expectations on a key property valuation metric.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.