The UK benchmark index has fallen into the red in today’s session, with investors continuing to focus on yesterday’s meeting by the European Central Bank (ECB). In individual movers, Burberry (LON:BRBY) has advanced after Credit Suisse turned bullish on the shares.
As of 12:44 BST, the FTSE 100 had lost 30.99 points to stand 0.42 percent lower at 7,365.99. Miners are proving a drag on the blue-chip index today, tracking copper prices lower. Antofagasta (LON:ANTO) is currently the sector’s biggest faller, having given up 1.16 percent to 1,034.72p.
Today’s drop comes after the index rose yesterday, as the ECB left its bond purchases in place. The ECB, however, signalled that it was prepared to scale back its stimulus programme, with the news fuelling demand for banking stocks. Barclays (LON:BARC) is currently leading other London-listed lenders higher, having added 1.47 percent to 187.20p.
“In recent years it’s been a problem for banks that interest rates have been as low as they are because that reduces their ability to earn a reasonable net interest margin,” Nicholas Hyett, equity analyst at Hargreaves Lansdown, said, as quoted by Reuters. “Lots of people have been waiting for it for a long time. Realistically how much monetary tightening are we going to see from the ECB? Probably not a great deal. It’s the start of a process, rather than the end of one.”
In individual movers, Burberry’s shares have added 0.40 percent to 1,770.00p, after trading about two percent higher in the morning, as Credit Suisse turned bullish on the company, calling it its ‘preferred brand turnaround story’.
The FTSE 100 index was 0.42 percent down at 7,365.99 points as of 12:55 BST on Friday, September 8, 2017.