FTSE 100 falls as energy, banking shares drag
Reuters
Published Jul 26, 2021 09:28
By Shashank Nayar
(Reuters) -Banks and energy shares dragged London's FTSE 100 lower on Monday, with worries about rising inflation and a jump in local COVID-19 infections denting sentiment further.
The benchmark FTSE 100 dropped 0.6%, with banks and energy stocks falling the most.
HSBC Holdings (LON:HSBA) and Barclays (LON:BARC) were among the top drags. They tracked the UK's benchmark bond yield lower, which fell to its lowest since February.
Miners Antofagasta (LON:ANTO), Rio Tinto (LON:RIO) and Anglo American (LON:AAL), meanwhile, were among the top gainers on strong base metal prices.
"As investors balance up the pincer like concerns of rising inflation and slowing growth, the benefit of the doubt appears to be leaning towards a slowed recovery, rather than one that has stopped in its tracks," said Michael Hewson, chief market analyst at CMC Markets.
The FTSE 100 has traded in a tight range since April, on concerns around higher local infections and a pullback of pandemic relief measures by the central bank while receiving some support from a set positive corporate earnings outlook.
"The upside is that central banks are unlikely to be in a rush to look at imminently curtailing their bond-buying or asset purchase programs, let alone raising interest rates," added Hewson.
The domestically focussed mid-cap index eased 0.3%.
Among other stocks, London-listed shares of Ryanair jumped 3.5% after it nudged up its forecast for full-year traffic on strong summer bookings. However, it also said fares remained well below pre-pandemic levels while reporting an after-tax loss of 273 million euros ($321.5 million).
Coast Capital fund demanded the resignation of FirstGroup's chief executive and two board members, pulling shares down 1.7% in the wake of a contentious asset sale and deepening a rift between the British transport company and its biggest shareholder.
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.