- FTSE100 closes with no significant change.
- HSBC’s underperformance weighs on the index.
- US stocks remain soft on the day.
As Wall Street plunged in morning trade amid some key technology gains, Tuesday’s relatively modest rally in the FTSE 100 quickly faded from memory, reversing a recent rally from recent sharp falls.
FTSE Stock Market Analysis
London’s blue-chip index rose 5.65 points, or 0.1%, to 7386.19, just above the 7380.54 daily low and below the 7463.15 daily high.
Concerns about economic growth again dominate investors’ thoughts, as they did late last week. In the meantime, excitement over the Twitter buyout has faded, and jitters about significant gains in tech have come to the fore, explaining why Nasdaq is taking over this afternoon.
HSBC began UK banking reports poorly, but Lloyds excelled on the strength of Taylor Wimpey’s firm view of the UK housing market. Lloyds has reason to be optimistic as a major player in this market, with the demand for mortgages still strong. As a result, Wall Street’s leading stocks are doing better following a bearish start.
Before the close, the FTSE 100 rose just 17.86 points, or 0.24%, to 7398.4 after earlier climbing to 7463. Concern over the impact of the lockdown in China had put pressure on mining stocks, which rebounded and supported the market.
Glencore PLC (LSE: GLEN) added 2.97% to its market value, while Anglo American PLC (LSE: AAL) added 3.09%. Shares of home builder Taylor Wimpey PLC (LSE: TW.) rose 2.77% following a positive announcement.
In contrast, HSBC Holdings PLC (LSE: HSBA) suffered a 3.83 percent fall in its shares, and Primark owner Associated British Foods PLC (LSE: ABF) suffered a 3.9% decline after warning that cost pressures were driving up prices in the US.
The biggest loser in the leading index was Ocado Group PLC (LSE: OCDO). As Kantar’s latest grocery report indicated, its sales fell 10.7% for the 12 weeks ending April 17, and its shares fell 6.49%. In addition, Marks and Spencer Group PLC (LSE: MKS) shares fell by 4.58%.
FTSE100 technical analysis: Bears dominating
The FTSE100 remains negative, and the price is heading towards the recent swing lows below the 200-period SMA. Staying below the SMA will keep the bearish pressure intact on the index.
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