Yahoo Finance FTSE-100 falls amid jitters over LVMH takeover of Tiffany
The FTSE-100 Index fell today as nervous investors face an uncertain session ahead of key European economic moves and rumours LVMH's mega takeover of Tiffany may not be going ahead.
Blue chip shares on the index fell 17.88 points at 6364.53 as the stories speculating about the failure of the major M&A deal put a dampener on recent recoveries in global markets. Sources were quick today to play down talk the deal was off, but sentiment in the deal community remained troubled.
However, CMC Markets analysts pointed out today that the index has underperformed its international peers, being down 15% so far this year compared with Germany's Dax, down 5% and the US S&P500, down only 3%. The US recovery has been "almost surreal" at a time of such grave protests in American cities, CMC said.
Data on the world's largest economy has, however, justified some of that progress, with gradual pickups in the service sector numbers and a pleasant surprise in this week's unemployment figures. Where analysts had expected 9 million jobs lost in May, the actual number came in at 2.76 million and April's figure was revised lower.
The data appeared to show the benefits in terms of employment of US states ending lockdowns early.
On the European stage, the European Central Bank is expected to leave interest rates unchanged today but loosen monetary policy again with e500 billion to e750 billion of bond buying under its Pandemic Emergency Purchase Programme. That will be on top of the e750 billion currently available and also in addition to the recently planned e750 billion recovery plan for regions most badly hit by the virus.
Analysts point out that the existing PEPP funds have still not been used up and some ECB council members oppose opening it up further.
Bounceback stocks such as Rolls-Royce, Meggit and Carnival fell 3% and Intermediate Capital Group lost 6% of recent gains.
HSBC and Standard Chartered's kowtowing to China over its security crackdown laws on Hong Kong had little impact on their share prices as analysts viewed the sense of realpolitik as unsurprising. HSBC fell 1% and Standard Chartered was unmoved.
Read more
Will there still be demand for London office space after the lockdown?
Analysis: Could London’s City boys start trading at 9am?
Analysis: Ten firms to embrace tech and emerge from lockdown stronger
Aston Martin cuts 500 jobs as car sales plummet
Car dealer Lookers to axe 1500 jobs
Chuka Umunna is back. Former Labour leadership hopeful lands tech gig