MARKET REPORT
THE FTSE 100 started to bounce back yesterday as investors held out hope for US-China trade talks later this week.
The UK’s blue chip index ended the day up 0.4% or 32.67 points at 7,591.26.
It marked a slight rebound after a rollercoaster ride for stocks a week earlier, when the FTSE 100 fell around 0.8% amid concerns that Turkey’s financial woes could impact Europe.
The pound was also trading higher, up 0.2% against the euro at 1.115 and 0.05% versus the US dollar at 1.276.
Data released by the Organisation for Economic Co-operation and Development (OECD) think-tank yesterday revealed that the UK is the worst performer among member countries when tracking the lag between gross domestic product (GDP) growth and real household income per capita since 2010.
It means that while the UK economy has expanded, household pay has failed to keep pace.
In UK stocks, Countrywide fell 0.12p to 14.48p. The struggling estate agent said it was shelving plans that could have seen senior bosses pocket millions after meeting top investors.
The group, which is tapping investors for an emergency £140m in funding, had planned to pay out as much as £20m to a trio of executives as part of changes to its remuneration policy.
Mulberry shares sunk nearly 30% or 169p to 400p as it warned profits could take a £3m hit following the collapse of department store chain House of Fraser.
The company said it was suffering from flagging UK sales, including at House of Fraser where it operates 21 concessions and employs 88 people.
House of Fraser collapsed into administration a week and a half ago, before being snapped up by Mike Ashley’s Sports Direct, but it is unclear how many stores he will keep or what terms will be offered to concession partners.
The biggest risers on the FTSE 100 were Evraz up 13.1p at 479.7p, Melrose Industries up 5.7p at 226.8p, Paddy Power Betfair up 155p at 7,110p, and easyJet up 32.5p at 1,607p.
The biggest fallers were Sage Group down 46.6p at 619.2p, Kingfisher down 3.1p at 270.2p, Berkeley Group Holdings down 41p at 3,696p, and United Utilities Group down 7.8p at 744.4p.