Despite pushing ahead at the market open, the FTSE 100 couldn’t keep up the momentum and quickly dipped into negative territory with banks, utilities and tobacco dragging the index down, says Russ Mould, investment director at AJ Bell.
“In the first hour of trading the FTSE 100 was 0.2% lower at 6,145. In comparison, the mid cap FTSE 250 index managed to press ahead, rising 0.4% thanks to a strong showing from retailers and builders’ merchants including Marks & Spencer, Travis Perkins and Games Workshop.
“Asian stocks fared better, with Shanghai’s SSE Composite index rising 1.4% on hopes for an economic recovery. Technology, telecoms and mining stocks led the index higher, with the top performer being Xining Special Steel.
“Brent Crude dipped 0.6% to $43.05 per barrel while gold briefly touched $1,813 per ounce.