Global stocks tread water ahead of central bank decisions

The FTSE 100 moved 2.35 points lower, or 0.03%, to close at 7,632.74.

Anna Wise
Monday 29 January 2024 17:23 GMT
Global stock markets have started the week on cautious footing (Tim Goode/PA)
Global stock markets have started the week on cautious footing (Tim Goode/PA) (PA Archive)

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Global stock markets have started the week on a cautious footing amid gloomy news from China’s property sector, and as traders gear up for a week of central bank announcements.

It was a subdued session for London’s top stock index which closed a fraction lower, with a surge in shares in mining group Fresnillo helping outweigh losses for some financial services stocks.

The FTSE 100 moved 2.35 points lower, or 0.03%, to close at 7,632.74.

Early on Monday, a court in Hong Court ordered property developer China Evergrande Group to liquidate after it was unable to reach a restructuring deal with creditors.

The liquidation order will hit confidence in the country’s property sector, which has been suffering a downturn after a crackdown on excessive borrowing by real estate firms.

As the world’s second largest economy, fallout from its property woes can cause a ripple effect across global markets.

Meanwhile, experts said traders appeared to be cautious ahead of a busy week of earnings reports and central bank decisions – with the US Federal Reserve announcing its interest rate decision on Wednesday and the Bank of England on Thursday.

Elsewhere for top European stock markets, Germany’s Dax closed 0.12% lower, while France’s Cac 40 fared slightly better, moving 0.09% higher.

In the US, the S&P 500 was up 0.1% and the Dow Jones was more or less flat by the time European markets closed.

The pound was down about 0.15% against the US dollar to 1.268 and up 0.2% against the euro to 1.1732.

The price of Brent crude oil was down 1.2% to 82.6 US dollars per barrel.

In company news, shares in Chill Brands closed more than a quarter lower as vaping firms suffered a sell-off after reports that disposable vapes are set to be banned in Britain.

The company, which makes nicotine-free vapes and CBD products, said it was prepared to adjust to rule changes, and referred to plans to launch reusable pod system vapes.

Nevertheless, investors were spooked by the Government’s plans, and shares in Chill Brands closed 26.9% lower.

It was a better session for airline Ryanair, with its share price rising on the day despite downgrading its profit outlook as its fuel bill surged.

Boss Michael O’Leary said the company was set to benefit from more people taking flights over the Easter period, but flagged a weaker-than-expected performance over the last few months of 2023. Its share closed 4.2% lower.

The biggest risers on the FTSE 100 were Fresnillo, up 49.8p to 548.6p, RS Group, up 21.2p to 788.6p, WPP, up 12p to 780.6p, Entain, up 13.4p to 980.6p, and Segro, up 11.6p to 876.8p.

The biggest fallers were Airtel Africa, down 4.9p to 120.5p, Schroders, down 15.8p to 409.2p, St James’s Place, down 23.8p to 647p, Intermediate Capital, down 62p to 1,753p, and Prudential, down 26.8p to 831.4p.

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