Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Markets

News : Markets
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 

FTSE rally out of steam as trade nerves return, BAT slides

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/12/2019 | 12:03pm EDT
Traders looks at financial information on computer screens on the IG Index trading floor

(Reuters) - London's main index eased as the latest salvoes in the U.S.-Chinese trade dispute kept investors on edge and weak demand outlook knocked oil shares, while British American Tobacco slid after warning of steeper declines in cigarette sales.

The FTSE 100, up for seven days straight after falling more than 3% in a global stock market sell-off in May, and the mid-cap FTSE 250 dipped 0.4% on Wednesday.

Oil majors were the biggest drags on the main index as oil prices slid more than 2%.

Financial stocks also weighed as President Donald Trump added to the trade nerves by saying he was not interested in a deal with Beijing unless it agreed to some "major points" in negotiations, while China declared it was "not afraid of fighting a trade war".

British American Tobacco skidded 4.4% on its worst day in seven months after it warned of steeper declines in cigarette sales globally mainly due to waning demand in its main U.S. market.

While the blue-chip index's losses last month were driven by fears that Trump's spats with trade partners were set to weaken global growth, the rises since have seen markets convinced that the U.S. Federal Reserve and other central banks will respond quickly with stimulus if needed.

"The rally has paused and things may get a bit tricky now as we may well see the market start to think - one may even say realise - that the Fed is not necessarily going to ride to the rescue," Markets.com analyst Neil Wilson said.

However, a timid U.S. inflation report seemed to bolster hopes of interest rate cuts.

Reckitt Benckiser erased earlier losses to end 4.4% higher. The consumer goods firm named PepsiCo executive Laxman Narasimhan to succeed outgoing chief executive officer Rakesh Kapoor.

Small-cap car dealership chain Pendragon lost more than a fifth of its value and slumped to a more than 6-1/2 year low as significant declines in new car and used car registrations caused it to warn on full-year profit. Shares of larger peer Auto Trader shed 2.4% on the FTSE 100.

Shares of sub-prime lender Provident Financial tumbled 6.6% on the mid-caps after Canaccord Genuity cut its rating to "sell", citing precarious capital position and dividend risks.

AIM-listed Majestic Wine surged nearly 10% after a Sky News report that activist fund Elliott Advisors had launched a bid for 200 of the specialist wine retailer's outlets.

(Reporting by Shashwat Awasthi in Bengaluru; Editing by Patrick Graham)

By Shashwat Awasthi

Stocks mentioned in the article
ChangeLast1st jan.
AUTO TRADER GROUP PLC -3.15% 522.6 Delayed Quote.18.65%
BRITISH AMERICAN TOBACCO PLC 0.26% 2717 Delayed Quote.8.40%
FTSE 100 INDEX 0.28% 7234.11 End-of-day quote.0.00%
NAKED WINES PLC 0.59% 256 Delayed Quote.3.04%
PENDRAGON PLC 9.91% 11.98 Delayed Quote.-51.56%
PROVIDENT FINANCIAL PLC -0.10% 420 Delayed Quote.-26.96%
RECKITT BENCKISER GROUP PLC -0.20% 6093 Delayed Quote.1.36%
TED BAKER PLC 3.05% 493.6 Delayed Quote.-69.10%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Markets"
02:14pMARKET SNAPSHOT: Stocks Mixed In U.S. Holiday Trade Amid Trade-deal Skepticism, Economic Growth Concerns
DJ
12:35pEUROPE : European stocks hit pause as trade doubts linger
RE
12:17pWALL STREET STOCK EXCHANGE : U.S. Stocks Inch Up in Quiet Session
DJ
11:54aUK stocks recoil as Brexit optimism fades; buyout spurs Sophos
RE
11:51aStocks meander on caution over trade talks, dollar gains
RE
11:49aStocks meander on caution over trade talks, dollar gains
RE
11:41aEUROPE MARKETS: European Stocks Slink Back On Warier View Of U.S.-China, Brexit Talks
DJ
10:15aTRACKINSIGHT : UK stocks continue to progress
TI
10:01aWALL STREET STOCK EXCHANGE : U.S. Stocks Slide Amid Trade Uncertainty
DJ
09:47aWALL STREET STOCK EXCHANGE : U.S. Stocks Open Lower Amid Trade Uncertainty
DJ
Latest news "Markets"