Metro bomb attack hits shares after Brexit boost DAVID MYRDDIN-EVANS
Stock markets around the world had a difficult start to the week as disappointing economic news and the bomb attack on the St Petersburg metro system drove share prices lower. The FTSE 100 index finished the day down 0.6% at 7.282.7, while the mid-cap FTSE 250 index was 0.1% lower at 18,954.2.
Next was Monday’s sharpest FTSE 100 faller after Exane BNP Paribas downgraded its investment rating on the fashion retailer to underperform.
Financials including Prudential and Standard Chartered were also pushed sharply lower after a weaker than expected reading on Chinese manufacturing.
On Tuesday morning the market opened in a more upbeat mood ahead of the release of the construction purchasing managers’ index (PMI) from IHS Markit.
The FTSE 100 was down 0.2% overall last week. But for the first quarter of 2017, the blue-chip index registered a gain of nearly 2%, with the FTSE 250 up 3.6%.
Old Mutual led the FTSE 100 down on Friday, crashing 7.5% following the sacking of the finance minister of South Africa – the country where the insurer does most of its business.
Miners with South African operations also fell, including Anglo American (down 3.4%) and Rio Tinto (off 2.4%).
Thursday saw Ashtead up 2.4% on broker comment that investors have undervalued its US expansion.
Wm Morrison also added 2.2% on a broker upgrade, But Marks & Spencer slipped 1.2% on a downgrade.
On Wednesday, the day Theresa May formally triggered Article 50, the FTSE 100 closed up 0.4%.
3i shares jumped 5.7% after Morgan Stanley lifted its price target to 823p. London Stock Exchange added 2.7% after the European Commission formally rejected Deutsche Borse’s proposed takeover.
The FTSE 100 rallied 0.7% last Tuesday after a negative start to the week prompted by concerns about President Trump’s ability to enact policy proposals.
Wolseley gained 5.1% on wellreceived results, while Aviva rose after reports it is looking to sell Friends Provident International for up to $750m.