Any optimism at the start of the new week receded, as the FTSE 350 quickly started dipping on Monday.
FTSE in the red
The FTSE 100 dropped 32 points (0.5%) to end Monday on 6,959 points. That’s despite news that the government now intends to reveal its fiscal plan on 31 October. Unless, of course, political minds change yet again and it doesn’t.
Rising bond yields, increasing the cost of government borrowing, didn’t help. And it happened despite the Bank of England’s efforts to control things.
The FTSE 350 lost 22 points for a slightly bigger 0.6% fall, ending at 3,827 points.
Among the fallers of the day we saw Centrica and Rolls-Royce. DS Smith was the biggest FTSE 100 winner, gaining a heady 12% after releasing an upbeat trading statement. The shares are still down 30% in 12 months, though.
Moneysupermarket.com led the mid-cap FTSE 250 index with a 7.5% climb.
US markets slipped similarly, with the S&P 500 dropping 28 points (0.8%) to end Monday at 3,612.
The Nasdaq ended the day at 10,542 points, down 110 points for a bigger 1% fall. The tech stock index hasn’t managed to break above the 11,000 level yet this week. Perhaps on Tuesday.
There’s very little company news coming Tuesday, so not much to tell us what’s really happening. But the day should start with the latest UK retail sales figures, and those could set the scene for results from retailers in the coming weeks.
The uncertainty and anticipation might well have been holding back the markets Monday. And the figures might set the scene for Tuesday’s movements.
We’re seeing a little optimism from brokers this week, with JP Morgan raising its price target for Imperial Brands, while keeping its positive target for HSBC Holdings steady. The same broker, together with Barclays, is also upbeat on Diageo.
Meanwhile, Deutsche Bank has reiterated its 180p price target for Aston Martin Lagonda. With the shares at 90p, some might consider that optimistic.
The oil price has been rising since Opec+ announced its production reduction. But it held back a little Monday, with Brent Crude dipping below $96 per barrel after having previously risen above $98.
Commentators reckon its all down to investors considering the likelihood of a global recession. And how any resulting reductions in fuel demand could weight against the restrictions in supply.