British shares log weekly loss as commodity, travel stocks weigh
Reuters
Published Nov 19, 2021 08:21
Updated Nov 19, 2021 17:26
By Bansari Mayur Kamdar and Devik Jain
(Reuters) -London stocks slipped on Friday, dragged down by commodity and travel shares on concerns around fresh COVID-19 curbs in Europe, while rising bets about rate hikes following strong economic data pushed the FTSE 100 index to its first weekly loss in four.
The blue-chip FTSE 100 closed 0.5% lower, while the domestically focussed mid-cap FTSE 250 index ended 0.4% down.
Oil majors BP (LON:BP) and Shell (LON:RDSa) slipped 2.9% and 3.1%, respectively, as crude prices sank amid a resurgent pandemic in Europe. Banks dropped 1.7%. [O/R]
Carriers Ryanair (LON:RYA), British Airways-owner IAG (LON:ICAG), Wizz Air (LON:WIZZ), EasyJet, Holiday Inn owner, Premier Inn owner Whitbread (LON:WTB) and caterer Compass Group (LON:CPG) slipped between 2.3% and 5.2% after Austria said it will reimpose a full COVID-19 lockdown, while neighbouring Germany warned it may follow suit to tackle a new wave of infections.
Lockdown anxiety also overshadowed data showing British retail sales in October rose by more than expected, adding to recent signs that a slowdown in the economy might have abated slightly.
Retailers like WH Smith (LON:SMWH) PLC and Ocado (LON:OCDO) Group rose 1.2% and 6.8%, respectively.
"People are bringing forward purchases they would have made in November and December. Consumers are being very cautious because of the uncertainty around the economy, high inflation, squeezing household incomes, squeezing disposable incomes and higher taxes," said Craig Erlam, analyst at Oanda.
"We should not get carried away with today's retail sales figures because it's not indicative of a big consumer driven rebound to come."
The data came at the heels of a hotter inflation reading and solid jobs report earlier this week which cemented expectations of an interest rate hike in December.
Bogged down by inflationary pressures and supply chain problems, the FTSE 100 has gained just 11.9% this year, underperforming its European and U.S peers. The index also logged its biggest weekly drop since mid-August.
Get The App
Among other stocks, Kingfisher (LON:KGF) tumbled 4.4% after the home improvement retailer reported a 2.4% fall in like-for-like sales in the three months to Oct. 31.
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.