This day was bad for the capital market. The FTSE 100 After 10 consecutive trading sessions, the index closed at 99. It was a reminder of the weakness seen recently after the accident at Evergrande. The amount of decline from the last trading session is also clear. At 1.1% it is the sharpest fall since August 19.
Significantly, FTSE 250 The index fell further, by 1.4% to 22,413. On average, the FTSE 100 index tends to fall more than the FTSE 250, which is a more UK-centric index. However, today’s trading clearly indicates that investors are concerned about the UK’s prospects.
Inflation terrifies investors
This is explained by the growing fear of inflation. Gas prices have reached confusing levels, which could disrupt economic activity and from there affect the company’s performance. Russian Prime Minister Vladimir Putin has said supplies to Europe could be increased. The stock market has already suffered losses, although there was some improvement in trading in the last half of the trading session.
Tesco and HSBC were the biggest FTSE 100 winners
Although not all stocks were affected. Supermarket stock Tesco Encouraged by sales and profits in the first half of the year, it has gained nearly 6% since raising its full-year guidance. HSBC There was a surprising gain by 3.4%. This was quite possible due to the instructions to upgrade the stock of investment bank UBS. It used to be neutral in the stock but now it has given a buy rating. The stock has risen above the 400p mark, which has not been seen since mid-August.
Recruiters among the big FTSE 250 winners
Of the FTSE 250 stocks, recruitment advice Pagegroup It was a standout stock after boosting the profit outlook in the third quarter trading update. The stock rose about 8%, probably as a spillover effect. Employer Hayes Group There was another big gain in today’s trading, up 3.4%.
FTSE 100 is affected by damaged cyclical stocks
There were plenty of losers today, of course. Among the FTSE 100 stocks, Chile’s copper mine Antofagasta 5.5% saw a huge fall this is consistent with its ongoing fall. In the last two months alone, the stock has lost about 16% of its value. This is a trend among industrial mining stocks, as commodity pricing approaches are beginning to make sense.
The other big FTSE 100 losers were also cyclical stocks, which are quite responsive to stock market volatility. This includes unnecessary retailers Next And JD Sports Fashion As well as hospitality stock Wheat bread, All of which have seen a decline of more than 4%. Tobacco Biggie Imperial brand It has also disappointed investors with its trading updates. While there was nothing to be disappointed with, the update also provided special encouragement, especially in terms of the growth of the tobacco alternative market.
Among the FTSE 250 stocks, the global review platform Trustpilot It has reported increasing losses since it suffered the most, losing 8% of its value today.
Manika Premsingh owns shares in JD Sports Fashion and Imperial Brands. Motley Flower is the owner of the UK’s shares and has recommended Next. Motley Full UK is recommended by HSBC Holdings, Imperial Brands and Tesco. The opinions expressed in the companies mentioned in this article may differ from those of the authors and therefore the official recommendations we make on our subscription services such as Share Advisors, Hidden Winners and Pro. Here at The Motley Flower we believe that considering a variety of insights makes us a better investor.