FTSE 100 watch: Footsie turns positive despite trade worries

AB Foods shares drop after group’s pre-closing update

FTSE 100 watch: Footsie turns positive despite trade worries

The UK benchmark index has climbed marginally higher in today’s session, despite ongoing investor worries over global trade. Associated British Foods (LON:ABF) meanwhile is underperforming the FTSE 100 after posting its pre-closing trading update.

FTSE 100 climbs higher

As of 12:24 BST, the Footsie had added 26.42 points to stand 0.36 percent higher at 7,304.12, shrugging off downbeat leads from the US and Asia, where trade war worries continued to weigh on investor sentiment. Closer to home, Italy’s government has signalled that the country’s 2019 deficit will not disrespect European fiscal rules.

“The FTSE 100 dipped to a four-and-a-half month low on Friday, before rebounding and finishing above the 7,280 level,” Chris Beauchamp, market analyst at IG, commented in a note, adding that this might suggest further gains, with a close above 7,340 points marking an important first step, opening the way to the 7,490-point level, while a close back below 7,280 points  “suggests a retest of the 7,226 low from Friday, and then down to 7,127”.

AB Foods heads south

In individual movers, AB Foods has been one of today’s most prominent Footsie fallers after cautioning that the strengthening of sterling will result in a loss on translation this year of some £20 million.

“A mixed trading update from ABF, with 2018 outlook being held, but more modest commentary from the company on 2019,” said Berenberg analysts, as quoted by Reuters, adding that while this was not ‘wholly unexpected,’ given currency movements and weakness in sugar prices, “another year of modest space expansion at Primark is disappointing”. AB Foods’ shares are 0.7 percent down at 2,254.00p.

The FTSE 100 index was 0.35 percent up at 7,302.81 points as of 12:46 BST on Monday, 10 September 2018.

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