Bruising week for European stocks sees FTSE 100 end in the red
London’s FTSE 100 lost 97.39 points on Friday, or 1.3%, to close at 7,402.14.
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Your support makes all the difference.The FTSE 100 has seen nearly 275 points shaved off the index in three days, ending a turbulent week in the red as fears grow over the conflict in the Middle East and inflation worries persist.
Global stocks have felt the impact of investor nervousness with major markets in Europe and the US notching up substantial losses.
London’s FTSE 100 lost 97.39 points on Friday, or 1.3%, to close at 7,402.14.
Germany’s Dax fell by 1.64% and France’s Cac 40 closed 1.42% lower.
Michael Hewson, chief market analyst for CMC Markets UK, said: “European markets have continued to look soft, finishing a negative week very much on the back foot with the Dax sliding below its October lows to its lowest levels since March, as concerns grow that the war between Israel and Hamas morphs into a wider conflict.
“Reports of attacks on US bases in Iraq and Syria overnight increased concerns that the US could get drawn into the conflict more than it already is, if it strikes back at those who are attacking Israel, or more crucially hits back at those who are attacking its own assets.
“Today’s declines have been broad-based and sector-wide with tech and basic resources acting as the main drags, while haven plays like gold, and the Swiss franc have continued to make gains.”
Nevertheless, there was a glimmer of hope for the UK economy with Bank of England governor Andrew Bailey telling the Belfast Telegraph that inflation is likely to drop markedly from October.
It comes after a surprise pause in Consumer Prices Index inflation last month, leaving the rate at 6.7% in September.
It was a negative start to trading over in the US as well. The S&P 500 was down 0.85% and Dow Jones was down 0.4% by the time European markets closed.
The pound lifted by about 0.1% against the US dollar to 1.2153, and was flat against the euro to 1.1472.
The price of Brent crude oil jumped by 0.93% to 93.24 US dollars per barrel.
In company news, shares in InterContinental Hotels Group (IHG) dipped despite the Holiday Inn owner recording an increase in room revenues and saying it was looking forward to a “very strong” financial performance for the year.
But the firm admitted to “macro-economic uncertainties and some short-term financing challenges” which it said was holding back the development of new hotels. This may have alarmed investors, and its share price was 4.5% lower at close.
Elsewhere, shares in ProCook dived after the kitchenware brand reported a dip in sales and said it was “cautious” about the outlook for the year given the persistence of “highly challenging market conditions”.
It also told investors that customers were seeking more value and taking more time to research before committing to a purchase. It left shareholders feeling less than optimistic and its share price closed 15% lower.
The biggest risers on the FTSE 100 were Endeavour Mining, up 74p to 1,760p, ConvaTec, up 6.8p to 203p, BAE Systems, up 21p to 1,061.5p, Unite Group, up 16p to 874.5p, and Hargreaves Lansdown, up 7.8p to 700p.
The biggest fallers on the FTSE 100 were InterContinental Hotels Group, down 276p to 5,878p, Anglo American, down 95p to 2,061p, Rentokil, down 19.7p to 464.2p, HSBC, down 25.3p to 615.9p, and Sage Group, down 36.8p to 951p.