Home Business NewsBusiness FTSE follows Asian markets lower

FTSE follows Asian markets lower

by LLB Editor
19th Jun 23 9:50 am

The FTSE 100 followed Asian indices lower amid continuing concerns about China’s faltering recovery and profit-taking in Japan after a strong rally.

AJ Bell investment director Russ Mould said: “The post-Covid surge anticipated in China appears to be losing momentum and there is uncertainty around how the authorities in the country might look to get things moving in the right direction. That was reflected in a weak showing from Chinese tech firms.

“In London the miners and fashion brand Burberry, which has a big footprint in China, were among the biggest losers.

“The market reacted negatively to Coca-Cola HBC’s $220 million acquisition of Finlandia vodka, unsure about a deal which feels a bit of a departure from its core activity of bottling Coke.

“The housing market continues to show early signs of stress as the cost of mortgages soars based on the Rightmove data. Until recently, house prices had been supported by a lack of sufficient housing stock in the UK but also low borrowing costs. One part of their equation looks to be disappearing and this has inevitable consequences for the property market.

“The Bank of England’s next rate decision on Thursday will be closely watched by markets, homeowners and estate agents. Another rate increase looks nailed on but the messaging which surrounds it could be highly instructive.

“Despite being an internal appointment new British American Tobacco boss Tadeu Marroco clearly wants to put his own stamp on the business, making several appointments to the board.

“Senior management faces a big challenge as regulatory pressures on tobacco and vaping continue to ramp up.”

Leave a Comment

You may also like


Sign up to our daily news alerts

[ms-form id=1]