DAVID MYRDDIN-EVANS
The FTSE 100 closed fractionally down on Monday with only one blue-chip, Astra Zeneca, gaining over 1% in the session.
The mood was soured by political uncertainties surrounding Theresa May’s leadership and the Brexit negotiations, with reports of up to 40 rebel MPS ready to sign a letter of no confidence in May’s position.
The index closed down 17 points at 7,415, while FTSE 250 lagged 232 points at 19,787.
In early trade on Tuesday the market was trading up slightly as inflation came in unchanged at 3% – a fiveyear high but slightly below expectations of a marginal rise to 3.1%. However, inflation is widely expected to begin to fall in the coming months as the sharp drop in sterling after last year’s EU referendum – which pushed up prices of many goods and services – falls out of the annual time period for calculating inflation.
The FTSE 100 was down 1.7% overall last week, its biggest weekly decline in two months.
Retailers fell sharply, with construction and industrial company shares also under pressure.
On Friday, Bunzl, the distribution and outsourcing group, dropped 6.5% amid fears of competition from Amazon’s business-to-business marketplace. The FTSE 100 was down 0.7%.
On Thursday, Sainsbury’s was down after the supermarket group reported a 9% fall in first-half profits.
Housebuilder shares weighed on the FTSE 100 last Wednesday as Persimmon’s faltering sales growth spooked the sector. Barratt Homes and Taylor Wimpey both saw share price declines.
Disappointing sales numbers from the British Retail Consortium last Tuesday led to a decline in many retail stocks, with Kingfisher off 2.9%. Shares in Marks & Spencer and Next also closed lower.
But the day’s biggest faller was security firm G4S as it pared back guidance on future growth. The FTSE 100 was down 0.7%.