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FTSE higher after weak retail sales

by LLB Reporter
22nd Oct 21 11:19 am

Retail sales fell last month sparking concerns the post-pandemic economic recovery may stall.

Official figures from the Office for National Statistics published this morning show that retail sales volumes excluding fuel fell by 0.2 per cent in September compared to August and by 2.6 per cent compared to September 2020.

“The FTSE 100 started in decent fashion on Friday after a week in which the markets have turned downwards, albeit modestly,” says AJ Bell financial analyst Danni Hewson.

“The rise in the index reflects its global horizons with the latest news on the UK economy hardly doing much to inspire confidence.

“An unexpected fall in retail sales, which came despite a boost from rising fuel prices, demonstrating that things are getting tougher out there.

“You wouldn’t think of a stock exchange as an obvious victim of supply chain issues, but London Stock Exchange’s warning that some of its spending on new technology could be delayed.

“Sainsbury’s disappointed the market with the news that it is ending talks over a sale of its bank division. A more streamlined Sainsbury’s might have made more sense as a bid target, and there has been significant speculation on this front since the takeover of rival grocer Morrisons.

“JD Sports took a step into Greece and Cyprus with the purchase of an 80% stake in Cosmos Sport for an undisclosed sum – a deal which could expand the company’s footprint and bring diversification benefits.”

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