Left Menu
Development News Edition

UPDATE 2-UK's main index sees 7th straight day of losses, BoE comments lift midcaps

Reuters | London | Updated: 12-07-2019 22:12 IST | Created: 12-07-2019 22:06 IST
UPDATE 2-UK's main index sees 7th straight day of losses, BoE comments lift midcaps

London's FTSE 100 saw its seventh day in the red on Friday, its longest losing streak since 2015, led lower by losses in pharmaceuticals after the U.S. White House scrapped a rebate rule, while the midcap bourse jumped on prospects of lower interest rates.

The UK's blue-chip index edged 0.1% lower after trading in positive territory for most of the session as its more internationally-exposed constituents such as miners climbed on hopes of an interest rate cut by the U.S Federal Reserve. The mid-cap FTSE 250, however, saw a 0.6% rise as a Bank of England official said that the BoE might need to cut interest rates almost to zero after a no-deal Brexit.

The BoE comments helped cap losses on the main index as well with blue-chip housebuilders Persimmon and Barratt rising on rate cut hopes. Pharmaceutical heavyweights AstraZeneca and GlaxoSmithKline were among the biggest drags on the main index, tracking shares in their U.S. peers after the Trump administration pulled the rebate rule.

Exporter stocks such as spirits company Diageo also weakened along with the dollar, which has been pressured by growing bets that the Fed would cut interest rates at a policy meeting later this month. Among small caps, Thomas Cook plummeted nearly 60% to an all-time low after it proposed a bailout that would hand control of its packaged-tour business to largest shareholder Fosun Tourism and would significantly dilute stakes of existing shareholders.

The world's oldest tour operator has been battling fading demand for packaged holidays and high debt, and traders said shares were being hammered as investors had been hoping Fosun would buy out the entire company. Markets.com analyst Neil Wilson said several questions about how the refinancing deal would impact a proposed sale of the airline business also remained.

Hiscox ended the day with a 2.1% drop, after having fallen as much as 6% after the insurer warned of continued deterioration in the market. Among big risers on the midcap index was cybersecurity firm Sophos Group, which jumped 5.4% after reporting higher first-quarter adjusted earnings and revenue on subscription growth.

Small-cap Lookers, whose shares have almost halved in value this year as the car dealership chain battles weaker car demand in Britain, dropped another 8% after it warned on annual profit.

Also Read: UPDATE 2-FTSE 100 drops as healthcare giants overshadow Fed-driven rally


TRENDING

OPINION / BLOG / INTERVIEW

3D printing and the future of manufacturing post COVID-19

The on-demand, customizable, and localized manufacturing of product components facilitated by 3D printing has the potential to redefine manufacturing but there are certain technical, mechanical, and legal limitations that, unless ...

How UK’s 'best prepared' healthcare system failed to gauge COVID-19

The UK is proud of their public health system and its unlike any other country as around 90 percent of British public supports the founding principles of National Health Service. But without accurate data being available to stakeholders in ...

Poor on IHR capacity progress in 2019, WHO says Cambodia tops COVID-19 response

Despite being in proximity to Hubei, the original epicenter of COVID-19 pandemic, Cambodia has reported just 226 confirmed cases and zero deaths. After seeing the data, WHO appreciated Cambodias healthcare information system but experts dou...

Loopholes in Healthcare Information System may have failed Singapore COVID-19 model

In the initial days of the COVID-19 outbreak, Singapore was in the limelight for its effective healthcare system and pandemic response plan. However, Singapore has now joined the list of the worst-hit nations and the situation is even worse...

Videos

Latest News

Kia Motors unveils compact SUV Sonet; plans to launch next month

South Korean automaker Kia Motors Corporation on Friday globally unveiled its sub four meter compact SUV Sonet which it plans to launch in India next month. The model would be manufactured at companys Anantapur-based Andhra Pradesh facility...

Indians aim to extend win streak vs. White Sox in Chicago

Limited to four runs in a recent four-game skid, the Cleveland Indians are starting to recapture their stride -- and stroke -- entering Fridays series opener against the Chicago White Sox. The Indians travel to Guaranteed Rate Field on a th...

Andhra Pradesh: Woman consumes sanitiser after police refuse to file complaint

A 50-year-old woman consumed sanitiser at a police station in Srikakulam after the police allegedly denied registering her complaint on Thursday. Erramma, a resident of Tarli Boddapadu village of Kotabommali Mandal in Srikakulam district ha...

U.N. agencies scramble to support Beirut blast victims

U.N. agencies are scrambling to support victims of the devastating warehouse blast in Beirut, which has undermined an already weak health care system in Lebanon, officials said on Friday.Damage to hospitals has removed 500 beds of capacity,...

Give Feedback