FTSE 100 closes down as retailers and banks weigh

September supermoon

Shares in London’s top index continued their 2024 decline on Monday as several of the FTSE 100’s retailers ended up deep in the red.

The index ended the day at 7,594.91 down around 1.6% so far this year, as it racked up another 30.02-point daily fall.

“Friday’s bounce for the FTSE 100 has been reversed as a risk-off mood prevails across European markets,” said Chris Beauchamp, chief market analyst at online trading platform IG

“Today’s volume-light day across global markets shouldn’t provide too much of a clue for the coming sessions, though it seems that profit-taking continues to prevail among investors.

“Earnings season didn’t get off to a great start on Friday, so there has been little incentive for traders to chase the market even in its current subdued state.”

At the bottom of the index Burberry, whose results were disappointing last week, rubbed shoulders with fellow – although very different – retailers Ocado and B&M European.

Banking giants such as Lloyds and HSBC were also faring badly by the end of the day.

“Today’s biggest fallers on the FTSE 100 are lower due to broker downgrades,” said CMC Markets analyst Michael Hewson.

“Burberry shares have continued their recent slide after getting downgraded by Goldman Sachs to neutral on concern over further weakness in its margins.

“HSBC is also lower on the back of a downgrade from BNP Exane on concerns over the impact of lower rates.”

At the end of the day in Europe Frankfurt’s Dax index fell 0.49%, while the Cac 40 in Paris had closed down 0.71%.

In New York, markets were closed for Martin Luther King Day.

On currency markets, the pound was trading 0.15% lower against the dollar at 1.2731 and had dropped 0.08% against the euro at 1.1628.

In company news, both builder Crest Nicholson and recruiter Page Group group warned on profits on Monday morning.

Crest said that it expects to make £41 million in profit, adjusted and before tax, in the year to October. It is a downgrade from the at least £45 million it guided in November, which was itself lower than two previous projections of £50 million and nearly £74 million.

The company blamed higher mortgages for a slowdown in the housing market last summer.

Shares closed down 1.11%.

Page Group did not blame a slowing housing market but pointed towards a slowing jobs market for its woes.

The company joined fellow recruiters Hays and Robert Walters saying that confidence is weak among hiring companies. The UK was Page’s worst-performing market with profits down by around a fifth.

Earnings are expected to be slightly below the £120-125 million Page Group had previously guided. Shares close down 1.45%.

The biggest risers on the FTSE 100 were Flutter Entertainment, up 360p to 13,150p, Admiral Group, up 43p to 2,625p, Tesco, up 3.7p to 300.6p, Beazley, up 5.5p to 511.5p, and Aviva, up 4.5p to 432.5p.

The biggest fallers on the FTSE 100 were Burberry, down 73.5p to 1,212p, Ocado, down 33.2p to 619p, Lloyds, down 1.16p to 43.83p, B&M European, down 14.2p to 553p, and HSBC, down 13.7p to 596.4p.

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