Britain’s blue chip benchmark finished down over 11 points at 6,472 having been in positive territory earlier
- FTSE 100 index closes down nearly 12 points at 6,472
- BP announces plans to cut 10,000 jobs
- US indices head north
5.05pm: FTSE 100 ends lower
FTSE 100 index closed marginally lower as the buoyant mood after Friday’s US jobs report fell away and the new trading week began with renewed trade fears.
Britain’s blue chip benchmark finished down over 11 points at 6,472 having been in positive territory earlier.
FTSE 250 shed over 92 points at 18,136.
“The unexpected creation of 2.5 million jobs and dip in unemployment to 13.3% – although the report said there was a margin of error of roughly 3% – has left dealers hopeful that we are over the worst of the economic misery,” said David Madden, analyst at CMC Markets on last week’s non-farm payrolls.
Monday saw a lacklustre, quiet trading session in London, with European shares also under pressure, although US stocks di go higher.
The Dow Jones rose over 257 points, while the S&P 500 added almost 15 despite comments from US trade advisor Peter Navarro, who claimed China was trying to steal US vaccines via intellectual property theft, adding to fears of another increase in US-China tensions.
3.30pm: FTSE 100 slips into the red
Entering the final hour of Monday’s session, the FTSE 100 had slipped into negative territory, shedding 23 points to 6,461 just before 3.30pm.
An initial spurt of enthusiasm also seems to be losing some steam in the US, with the Nasdaq seemingly succumbing to profit-taking as it reversed course from a positive start and was down 0.29% at 9,787 after the first hour of trading on Wall Street.
The FTSE 100 has been weighed down by one of its biggest companies, PLC (), which was down 3.2% at 8,155p after it played down reports it is attempting a takeover of Gilead Sciences Inc in what would be the world’s biggest pharma merger.
Market sentiment may also be cooling following the boost from last week’s US jobs figures as analysts brace for another tough test for the economy as government stimulus measures are wound down, potentially leading to a surge in unemployment.
“It is far from clear how easily the newly unemployed will find jobs again even if lockdowns continue to be relaxed”, said Rupert Thompson, chief investment officer at wealth manager Kingswood.
“The economic backdrop is clearly improving and will continue to do so if a re-tightening of lockdowns is avoided. However, the big question is whether it will continue to improve as fast as the market seems to believe… Fear of missing out – and quite a few investors have missed out as the sharpness of this rally has caught most people by surprise – could yet carry equities higher near term. But, with markets now well ahead of the economic reality, a correction remains on the cards over coming months”, he added.
2.45pm: Wall Street opens higher
The US markets have started…
Read More: FTSE 100 slips into the red in late-afternoon; US rally loses some steam