FTSE 100 watch: Trade worries pressure Footsie despite North American deal

Royal Mail’s shares extend slide in wake of profit warning

FTSE 100 watch: Trade worries pressure Footsie despite North American deal

The UK benchmark index has fallen into the red in today’s session, pressured by ongoing trade worries despite a deal on the other side of the Atlantic. Royal Mail Group (LON:RMG) has extended its slide in the wake of its shock profit warning yesterday.

FTSE 100 in the red

As of 12:12 BST, the Footsie had given up 29.27 points to stand 0.39 percent lower at 7,466.40. Sentiment has been subdued today with a deal on North American free trade failing to assuage investor concerns.  

“Just as one market issue gets solved, with progress towards a new trade deal between the US, Mexico and Canada, so President Trump reopens old wounds with China and the EU,” AJ Bell investment director Russ Mould commented, as quoted by Proactive Investors, adding that this had led to “weakness in Asian markets overnight and, combined with ongoing ructions over Italy, means the FTSE 100 is falling despite a weaker pound”.

Individual movers

Shares in Royal Mail have extended the previous session’s slump prompted by the postal operator’s profit warning.

“We have been bearish on the outlook for productivity improvements, but yesterday’s profit warning was shocking in its scale and timing,” Liberum analyst Gerald Khoo said, as quoted by Reuters. Royal Mail’s shares are changing hands 6.23 percent at 367.00p, having lost nearly 18 percent yesterday.

Ferguson (LON:FERG) has been another prominent Footsie faller after saying that its growth in September was slightly lower than August. Ferguson’s share price is currently 5.38 percent worse off at 6,178.00p.

Tesco (LON:TSCO) is also underperforming the broader London market, having given up 1.29 percent to 233.65p, ahead of its half-year results due out tomorrow.

The FTSE 100 was 0.37 percent down at 7,467.86 points as of 12:39 BST on Tuesday, 02 October 2018.

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