FTSE Gets Off to Subdued Start
The FTSE 100 got off to a subdued start this morning, falling six points to 7,108.53 just after the opening bell. The UK’s leading index is struggling as precious metals companies found themselves among the leading losers with gold prices trending down.
One of the poorest performers of the day was Ashtead. The plant hire company lost 4.3 percent as the pound continued to show strength against the dollar. Meanwhile, Unilever’s financial results were met with a positive response from investors, and shares in the company increased by one percent.
Ortac Resources, a gold mining company, bucked the trend against miners and climbed by 40 percent after it confirmed that it had made plans for a joint venture to develop a mine in Slovakia.
The news of the election is just one part of the issue hampering the FTSE 100. Weakness in commodity prices is also contributing to the difficulty, and falling global bond yields are hurting the financial services sector. This has contributed to difficulties in the FTSE 100, but the picture is different in the FTSE 250, which is less influenced by miners, financial services, and companies that earn most of their income in foreign currency.
In other news, the Asian markets were broadly positive, while Wall Street saw a mixed overnight performance, with the NASDAQ up, but the less tech-focused Dow Jones and S&P 500 ending the trading session down slightly.
In the UK, the main news for the day will be reports from Sky, Unilver and Debenhams.