FTSE dips into the red while US stocks rebound
The FTSE 100 was down by 17.02 points, or 0.23%, to 7,472.17.
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Your support makes all the difference.It has been another lacklustre day for the FTSE 100, with modest gains for mining giants failing to offset a big drop in the share price of Frasers Group.
The retailer, which owns Sports Direct and is majority-owned by Mike Ashley, saw its share price tumble by nearly a tenth, despite the company hailing strong profits amid retail gloom.
It sank to the bottom of the blue-chip index, while rival sports retailer JD Sports Fashion also saw its share price dip.
Mining and health stocks shot to the top of the FTSE 100 as the Chinese government said it would ease some of its lockdown restrictions following political unrest.
The FTSE 100 was down by 17.02 points, or 0.23%, to 7,472.17.
Analysts have pointed out that investors have been swayed by decisions made in China and the potential reopening of its economy, because many listed businesses have big markets in Asia.
This week highlights how traders have to somehow weigh up the benefits of a gradual Chinese reopening with the fears of an impending economic contraction in the year ahead
Meanwhile, investors were more optimistic across the pond and its top markets were climbing when European markets closed.
The S&P 500 was up by 0.75% and Dow Jones was up by 0.69%.
Joshua Mahony, senior market analyst at online trading platform IG, said: “To a large extent, this week highlights how traders have to somehow weigh up the benefits of a gradual Chinese reopening with the fears of an impending economic contraction in the year ahead.
“While the resurgence in equities seen today highlights the interchangeable nature of market sentiment at the moment, the surge in natural gas seen since Tuesday does show how a cold snap in Europe could once again test the bulls if inflation fears resurface.”
Elsewhere in Europe, the German Dax just about stayed in the green and was up by 0.02%, while the French Cac had fallen 0.2%.
The pound was up by 0.25% to 1.2235 US dollars, but down by 0.18% to 1.1591 euros.
In company news, Frasers Group told shareholders that its revenues had jumped by 13% to more than £2.6 billion in the latest half year, while pre-tax profits had surged by more than half.
Nevertheless, investors were put off by cautions of a challenging retail environment and its share price tumbled by 9%.
Fashion retailer In The Style said it was considering a potential sale of the business, although it is not currently in talks with any buyers.
At the same time, it confirmed that its chief executive Sam Perkins would be stepping down at the end of the year, to be replaced by founder Adam Frisby on an interim basis.
Shares in the company edged up by 0.93%.
Digital estate agency Purplebricks said it was increasing its annual cost-cutting target to £17 million, up from £13 million, as it continues to make redundancies across the business and slash its marketing spend.
Its share price dropped by 7.2% at close.
The biggest risers on the FTSE 100 were Haleon, up 10.45p to 316.15p, Rio Tinto, up 164p to 5,780p, Fresnillo, up 19.2p to 885.4p, Pershing Square Holdings, up 55p to 2,885p, and Hargreaves Lansdown, up 15.4p to 850.4p.
The biggest fallers on the FTSE 100 were Frasers Group, down 80.5p to 814.5p, London Stock Exchange Group, down 508p to 7,380p, Intermediate Capital Group, down 59.5p to 1,157, BT Group, down 4.35p to 112.55p, and Airtel Africa, down 4.4p to 116.8p.