Financial Planning

FTSE 100 dips amid global sell-offs

Financial Planning
Published: 9 February 2018

The Dow Jones and Asian markets slumped overnight as the global sell-offs continued with investors concerned with possible higher interest rates in the near future. The Dow fell by over 1,000 points for the second time this week and China’s Shanghai Composite sank 4.1%. However, the European markets fared better amidst the ongoing volatility with the Dax slipping 0.3% and the Cac 40 0.4%.

The FTSE 100 (INDEXFTSE:UKX) fell 0.12%, down 8 points at 7,162.46 by 10.42 GMT.

Financial stocks were the biggest weight on the index although analysts thought the Bank of England stating that interest rates would be raised sooner than expected would gave the banking sector some support in the medium-term. Barclays (LON:BARC) shares fell 0.4%, HSBC (LON:HSBA) 0.3% and Lloyds (LON:LLOY) 0.4%.

Speciality chemicals firm Johnson Matthey (LON:JMAT) was the biggest loser, down 4.0%, as rival Umicore announced an injection of €892mn to fund growth.

The miners were giving the most support with Anglo American (LON:AAL) shares up 1.5% and Rio Tinto (LON:RIO) 1.3%.

Information and events firm Relx (LON:REL) shares rose 1.7% on an upgrade from Deutsche Bank to Buy from Hold.

In the small-caps, corporate travel firm Hogg Robinson (LON:HRG) shares soared 48.7% on the news of a takeover offer from American Express and that it had agreed the sale of its payments business Fraedom to Visa for £141.8mn.

The Daily Mirror owner Trinity Mirror (LON:TNI) shares jumped 6.0% as it said it would takeover the newspapers and magazines of Northern & Shell which include the Daily Express, Daily Star and OK. CEO of Trinity Mirror said: “Northern & Shell’s titles have a large and loyal readership, a growing digital presence and a stable revenue mix and offer an excellent fit with Trinity Mirror.”

On the currency markets, sterling fell 0.24% against the dollar to $1.3899 and dropped 0.23% against the euro to €1.1338.