FTSE 100 collapses as traders dump mining stocks

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It’s the morning after the day before and the Footsie provided a real buzzkill

  • FTSE 100 tumbles 91 points
  • Miners and banks lead the retreat
  • Entain driven by England’s football success

Well, at least this one won’t be extended… the FTSE 100 is heavily behind schedule, thanks in large part to weak miners.

The London index of major stocks lost 91 points (1.3%) to 7,060.

“The FTSE 100 fell… with miners and banks being the main sectors weighing on the index, suggesting that investors have started to worry again about the strength of the economic recovery. The fortunes of miners are strongly linked to the prices of raw materials and the cost of metals and minerals is generally determined by the supply and demand of industrial projects around the world, ”said Russ Mold, spokesperson for AJ Bell .

“Banks are also heavily influenced by economic activity. A period of strong growth means that there could be greater opportunities to lend money to businesses and such a context could also indicate a rise in interest rates, which increases the chances for the banking sector to realize higher profit margins. If the economic outlook is not as strong, then investors start to leave the banks for fear that it will be more difficult for them to increase their profits, ”he added.

(), the company that owns the Ladbrokes and Coral bookmaker brands, rose 1.9% to 1,841.5%. maybe not heard of).

READ Ladbrokes owner says Euro is shaping up to be biggest sports betting event of all time

“England’s victory in the semi-final will be a double cause for celebration in Entain’s offices. A final appearance is an open goal for the group, and will be a boon for sports betting. England’s long run in the tournament may have contributed to the announcement that underlying cash profits are expected to exceed consensus for the full year, “suggested Sophie Lund-Yates, wisely avoiding any mention of England “bringing the bacon home”.

“There are, however, a few monsters under the bed when it comes to Entain. The first is the threat of increasing regulatory pressure in some of its markets. In the past, Entain has done a reasonable job of staying at the forefront of regulation, and it is essential that it continues to do so. The current share price assessment is very foamy and it could quickly stagnate if there were any unwanted surprises, ”she suggested.

8:45 am: Inflationary fears take hold of the markets

If anyone expected the market to rebound in the wake of England’s narrow semi-final win over Denmark last night, they must have been sadly disappointed.

Because the London blue chip index was driven by uncompromising realism (which we’ll also need when Gareth Southgate’s team meet a hard-to-break Italy on Sunday).

Fear of inflation and the potential reduction in monetary support in the United States instilled the largely negative sentiment that haunted Footsie and major Asian markets earlier.

Having said that, there is no way of consensus on the issues. The U.S. Federal Open Markets Committee minutes released Wednesday revealed a divided camp.

Miners, up sharply on Wednesday, suffered from the early sale with Anglo American () leading the declines with a loss of 2.6%.

Builder () was down 1.6% after a largely benign business update.

As Richard Hunter, Head of Markets at Interactive Investor noted: “is fully back on track with most metrics improving above pre-pandemic levels.

“The one area that previously reported he was unlikely to recover before 2022, legal completions, is getting closer and closer.”

6:50 a.m .: Rear departure planned

The FTSE 100 is expected to start on the back foot on Thursday after risk appetite comes and goes, before and after the Federal Reserve minutes released last night.

CFD firm IG Markets sees the London benchmark drop 24 points, trading at 7,126 to 7,129 with just over an hour to go to Thursday’s opening.

The macro-eyes remain focused on the economic recovery, the inflationary threat and central bank policy as the Fed minutes showed the division in the camp.

“The minutes of the June FOMC meeting showed that two camps were arguing over whether the US economy was ready for a faster reduction in asset purchases,” Danske Bank analyst Aila Mihr said in a note.

“Some officials have hinted that the reduction in purchases may start sooner than expected given the stronger economic outlook, but some officials also called for caution as information coming in in the coming months would provide a better assessment of the economy. labor market trends and inflation. “

Wall Street traders saw the Dow Jones close higher on Wednesday, up 104 points or 0.3%, to end at 34,681 while the S&P 500 also added 0.34% to end the session at 4,358 .

The Nasdaq was only slightly higher, closing at 14,665, and small cap Russell 2000 fell almost 1% to 2,252.

In Asia, business factors included concerns about the Chinese tech sector and the threat of censorship, as well as rising Covid-19 numbers.

Japan’s Nikkei lost 200 points or 0.7% this morning to 28,169 and Hong Kong’s Hang Seng was down 2.4% to 27,279.

The Shanghai Composite was down 0.6% to 3,529.

Around the markets

The pound: US $ 1.3785, down 0.12%

Gold: US $ 1,797, down 0.37%

Silver: US $ 25.91, down 0.88%

Bitcoin: US $ 33,208, down 4.5%

6:50 a.m .: Early Markets – Asia / Australia

Stocks in the Asia-Pacific region were mostly down on Thursday as Beijing stepped up scrutiny of Chinese quotes in the United States, many of which are tech companies.

On July 2, the Chinese Cyberspace Administration (CAC) asked ride-sharing giant Didi to stop accepting new user registrations, citing China’s Cybersecurity Law, a sweeping law implemented in 2017.

Subsequently, the ACC said that Didi’s app contained serious violations of laws and regulations relating to the collection of personal information.

China’s Shanghai Composite fell 0.73% on Thursday while Hong Kong’s Hang Seng index fell 2.45%

In Japan, the Nikkei 225 fell 0.68% and South Korea’s Kospi slipped 0.79%.

Australian stocks advanced, with the S & P / ASX 200 trading up 0.20%.

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