British PMI and retail data dent investor sentiment

Saudi Arabia's announcement that it will cut its production by 1 million barrels a day from July lifted oil stocks on Monday. However, sentiment took a hit after the release of lower-than-expected May ISM services data in the US. The index just managed to remain in expansion territory at 50.3, but the data is nevertheless disappointing, fuelling fears of recession. The FTSE 100 inched down 0.1%.

The index dropped 0.4% this morning, as oil prices cooled down.

Investors are assessing the UK Construction Purchasing Managers' Index (PMI), which was released this morning. It was slightly better than expected, climbing to 51.6 from 51.1 in April, led by the civil engineering and commercial sectors. However, housing activity contracted at the fastest pace since the start of the pandemic.

Meanwhile, retail sales growth slowed to its lowest level in six months in May, the British Retail Consortium said. Total retail sales for the four weeks to May 27 gained 3.9% compared to April.

Among stocks, British American Tobacco was up 1.1%, after it reiterated its annual revenue and profit guidance.

 

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