FTSE 100 watch: Footsie slumps as risk-off sentiment grips markets

RBS shares slide on $100m ‘uncertain economic outlook’ charge

FTSE 100 watch: Footsie slumps as risk-off sentiment grips markets

The UK benchmark index has fallen deep into the red this Friday, pressured by corporate results and worries over geopolitical trade which are weighing on market sentiment around the world. Royal Bank of Scotland Group (LON:RBS) has been one of today’s most notable FTSE 100 fallers after booking £100 million to cover the more ‘uncertain economic outlook’.

FTSE 100 deep in the red

As of 12:38 BST, the Footsie had given up 74.13 points to stand 1.06 percent lower at 6,929.97, with investors shunning stocks amid worries over global trade and Brexit, as well as tensions over Saudi Arabia after the killing of journalist Jamal Khashoggi.

“There aren’t many more lifelines for FTSE heavyweight sectors, with base metals down on China-growth worries and oil still in the doldrums on perceived weak demand,” Mike van Dulken and Artjom Hatsaturjants at Accendo Markets said in a note, as quoted by Reuters.

Individual Footsie movers

A fall in RBS is also weighing on the blue-chip index after the lender, still part-owned by the UK government, announced that it had taken an additional £100 million impairment charge reflecting the more uncertain economic outlook. The group’s shares are down 4.39 percent at 224.20p.

WPP (LON:WPP) has extended the previous session’s losses when the shares came under pressure as the ad giant reported a third-quarter slowdown. WPP’s share price is 3.93 percent worse off at 875.00p.

British Airways and Iberia parent International Consolidated Airlines (LON:IAG) meanwhile is outperforming the market after reporting a rise in its third-quarter operating profit despite a surge in fuel costs. IAG’s shares are 1.97 percent up at 599.00p.

The FTSE 100 index was 1.12 percent down at 6,925.35 points as of 12:55 BST on Friday, 26 October 2018.

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