50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

UPDATE 1-Defensive FTSE 100 ekes out a gain amid global trade sell-off

Published 05/04/2018, 02:15 am
Updated 05/04/2018, 02:20 am
© Reuters.  UPDATE 1-Defensive FTSE 100 ekes out a gain amid global trade sell-off
UK100
-
BATS
-
IMB
-
MRW
-
WPP
-
TSCO
-
DGE
-
RIO
-
SHP
-
AAL
-
GSK
-
BHPB
-
ULVR
-
TPT
-
FRES
-
FTMC
-
GLEN
-

* FTSE 100 up 0.1 pct

* Trade tensions weigh on stocks

* WPP (LON:WPP) drops after co to probe CEO (Updates prices, adds details)

By Kit Rees and Helen Reid

LONDON, April 4 (Reuters) - Britain's FTSE 100 managed a small gain on Wednesday despite global trade worries denting appetite for risky assets, as investors piled into defensive sectors which make up a large part of the UK index.

The blue-chip FTSE 100 .FTSE closed 0.1 percent higher, while mid-caps .FTMC fell 0.7 percent.

The FTSE recovered from sharp losses at the open, when it slid along with other European indexes after China announced additional tariffs on $50 billion of U.S. goods. over global trade have weighed on stocks over the past month, with the Trump administration set to unveil a list of Chinese advanced technology imports targeted for U.S. tariffs to punish Beijing over technology transfer policies. more (about) the second-order effects on global growth sentiment, and the fact that this is all arriving at a time where some of the leading indicators have been rolling over anyway," Ian Williams, economics & strategy research analyst at Peel Hunt, said.

The FTSE 100 was the only European index to end in positive territory, a feat investors put down to its strong weighting in defensive sectors less vulnerable in a sell-off.

"Generally, at times like this historically the UK equity market has been reasonably defensive ... the nature of the sector weightings tend to be a bit less cyclically-exposed," Williams added.

Pharmaceutical stocks Shire SHP.L and GlaxoSmithKline GSK.L were among the biggest gainers, while precious metals miner Fresnillo FRES.L was up 1.1 percent, as gold is considered a safe-haven asset.

Cigarette firms British American Tobacco BATS.L and Imperial Brands IMB.L , and consumer goods giants Diageo DGE.L and Unilever ULVR.L , also gained as investors rushed into high dividend-paying stocks.

Sectors which are more sensitive to the economic cycle, such as financials and materials, were the biggest weights.

Miners Anglo American AAL.L , BHP Billiton BLT.L , Glencore GLEN.L and Rio Tinto RIO.L fell 2.5 to 3.2 percent as metals prices sank. Investors worried that tariffs may disrupt metal imports to China, the biggest global buyer.

Shares in WPP fell 2 percent after the advertising group said it was investigating an allegation of personal misconduct against its CEO, Martin Sorrell, who denied wrongdoing. (Sorrell's) high profile, the accusations are bound to attract a lot of attention and, given he is the face of WPP to many, there is likely to be a negative impact on sentiment today," Liberum analysts said.

"One thing this may do is intensify talk about Sir Martin's successor at WPP, which has been an issue lurking in the background," they added.

While individual stock moves were relatively muted, shares in Morrisons MRW.L were the top gainers, up 2.9 percent after favourable data from Kantar on the supermarket's performance.

The data showed Morrison and peer Tesco TSCO.L continued to outperform rival "big four" supermarkets in the 12 weeks to March 25, with both enjoying sales growth of 2.4 percent. Shares in Tesco however declined 0.7 percent. small-caps, Topps Tiles TPT.L shares tumbled 13.3 percent to a four-month low after the flooring retailer said sales had been hit by a weaker market and bad weather.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.