FTSE 100 watch: Footsie extends losses amid global growth concerns
The FTSE 100 has fallen into the red in today’s session, pressured by concerns over global growth and investor caution ahead of the Federal Reserve’s policy meeting this week. Retailers are further weighing on the blue-chip index following a statement by Asos (LON:ASC).
FTSE 100 trades lower
As of 12:38 GMT, the Footsie had given up 30.58 points to stand 0.45 percent lower at 6,814.59. Sentiment has been subdued today amid worries over global growth following the latest downbeat data out of China and caution ahead of the Fed’s two-day meeting starting tomorrow. At home, Brexit worries are further weighing on sentiment.
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“Friday’s bearishness has continued into Monday, although, for now, the losses are limited,” Chris Beauchamp, market analyst at IG, commented in a note.
Retailers weigh on index
Retailers are also weighing on the FTSE 100 after smaller London-listed peer Asos trimmed its sales growth guidance, pointing to ‘significant deterioration’ in November. The update has weighed on Marks & Spencer Group (LON:MKS) and Primark owner Associated British Foods (LON:ABF), whose shares are changing hands 3.64 percent and 2.52 percent lower, respectively.
“If Asos is finding it tough out there, then just about every retail stock has problems,” suggested Neil Wilson at Markets.com, as quoted by Proactive Investors. “We knew the high street was struggling due to structural shifts, but Asos slashing guidance suggests things are even worse in the run up to Christmas than previously thought for the sector and the strife extends well beyond the high street.” Asos’ shares are 38.56 percent down at 2,572.00p, having slumped more than 40 percent earlier in the session.
The FTSE 100 was 0.53 percent down at 6,808.94 points as of 13:17 GMT on Monday, 17 December 2018.