FTSE 100 watch: Footsie retreats after Monday spike

WPP shares sold off after group’s results

FTSE 100 watch: Footsie retreats after Monday spike

The UK benchmark index has fallen into the red this Tuesday, following yesterday’s upbeat start to September, with trade worries continuing to weigh on sentiment. A drop in WPP (LON:WPP) is also pressuring the FTSE 100 after the ad giant reported a drop in profits.

FTSE 100 retreats

As of 12:18 BST, the Footsie had given up 35.17 points to stand 0.47 percent lower at 7,469.43. Sentiment has been subdued today following a downbeat lead from Asia where shares retreated on the back of trade worries.

“The significantly weaker pound boosted the FTSE in the previous session, lifting it notably above its peers on mainland Europe. However, the UK index has been unable to hold on to that momentum,” analysts at London Capital Group said, as quoted by Reuters. Joshua Mahoney, market analyst at IG, meanwhile commented in a note that “a somewhat uninspiring period for the indices is pointing towards the possibility of further downside for European markets”.

Individual movers

WPP is also weighing on the blue-chip index after revealing that its reported revenue had dropped 2.1 percent in the second quarter of the year, pressured by currency headwinds, while is profit before interest and tax came in seven percent lower. The ad giant’s shares are currently changing hands 6.11 percent lower at 1,198.50p.

British American Tobacco (LON:BATS), whose shares were sold off in the previous session on the back of downbeat analyst comments, has recovered some ground today and is currently 0.87 percent up at 3,761.50p.

Shares in DS Smith (LON:SMDS) have been little changed, trading 0.20 percent lower at 491.70p, after the packaging group reported ‘progress’ and said that it had seen ‘good’ like-for-like volume growth so far in the year. 

The FTSE 100 was 0.50 percent down at 7,466.84 points as of 12:38 BST on Tuesday, 04 September 2018.

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