FTSE Slips After Long Weekend

Tue, 30th Aug 2016

The FTSE 100 opened lower by 6 points, at 6,831, after the long weekend. The actual market performance was mixed, with the strongest performer of the day being Bunzl, who were up by more than three percent - enjoying a strong performance in other regions, but ‘subdued conditions’ in the UK.

The poorest performer of the morning was Glencore, who was down by 3.5 percent. The group has suspended production at it’s Newlands, Australia coal mine after one of their contract workers died.

Internationally, the Dow Jones gained 0.58 percent, while the S^P added 0.52 percent. Crude oil is up by 0.45 percent, recovering from the jitters in the market in the run up to the Jackson Hole symposium. Oil is priced in US dollars, and if there was a rate increase then that would have made it more expensive to international buyers.

Copper prices increased by 0.6 percent, having a positive impact on commodity-related companies. In the Asian markets, the Nikkei 225 slipped by 0.07 percent, while the Shanghai composite gained 0.39 percent.

The quarterly review of the FTSE 100 is due to take place on Wednesday, and Berkeley Group remains likely to be one of the companies demoted. The housebuilder joined the index this time last year, and had been performing well until the sector was hit hard by panic selling after the results of the Brexit vote. While most housebuilders have started to recover from that initial shock, the timing of the review means Berkeley still has not recovered to pre-brexit levels.

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