FTSE 100 watch: Footsie little changed amid Tory party conference

Ryanair warning hits blue-chip airlines

FTSE 100 watch: Footsie little changed amid Tory party conference

The UK benchmark index has started the last quarter of the year little changed, with investors focusing on the Tory party conference. Blue-chip airline stocks are weighing on the FTSE 100 following a profit warning at Ryanair.

FTSE 100 little changed

As of 12:23 BST, the Footsie had added 6.50 points to stand 0.09 percent higher at 7,516.70. Gains in the Footsie have been marginal, with the Tory party conference having entered its second day.

“All eyes on sterling over the next few days as the pound will remain sensitive to news from the Conservative conference,” said Peel Hunt economist Ian Williams, as quoted by Reuters.  

“With the FTSE 100 awaiting a directional break, the overall picture is somewhat unclear,” Joshua Mahoney, market analyst at IG, commented note, adding that either a break above 7,558 points or below 7,446 points was needed to provide direction.

Disappointing data out of China is weighing on miners, with Fresnillo (LON:FRES) currently leading the sector lower, having given up 1.73 percent to 807.20p.

Airlines come under pressure

easyJet (LON:EZJ) and British Airways parent International Consolidated Airlines Group (LON:IAG) have come under pressure as Irish budget carrier Ryanair cut its full-year profit guidance, amid ongoing strike action and higher oil prices. easyJet’s share price is currently 3.54 percent down at 1,267.50p, while shares in IAG are changing hands 1.27 percent lower at 651.80p.

“The stock market clearly thinks Ryanair’s problems are negative for other parts of the airline sector,” AJ Bell investment director Russ Mould, commented, as quoted by Proactive Investors.

The FTSE 100 was 0.02 percent lower at 7,511.92 points as of 12:46 BST on Monday, 01 October 2018.

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