The FTSE 100 has fallen on Christmas Eve, dashing any hopes the City of London had of a Santa’s Rally.
The blue-chip stock was down by 38 points, or 0.6%, in early trading. December has seen the FTSE fall 3.7%.
After stocks increased on Friday by 9.34 points, there were previous hopes from analysts for a late Santa’s Rally.
David Jones, the Chief Market Strategist at Capital.com, said: “As stock markets wind down for Christmas there is only one thing that we can be sure of – there was no Santa Rally. It has been a terrible month for investors – so far the Dow Jones is on track for its worst December since 1932, having lost 12% for the month as of last Friday’s close. “
“Investors will be glad of some time off from the massive sides – but it does not bode well for 2019. Markets had risen since the financial crisis, so that’s ten years of growth that have seen many world stock markets hit fresh all-time highs. The turnaround in recent months so far has not tempted buyers back in, leaving many concerned that next year could see a full-blown bear market.”
One of the biggest fallers of the FTSE 100 was WPP (LON: WPP). The group announced earlier this month that it will axe 3,500 jobs and cut annual costs by £275 million a year. Shares are currently trading down 1.64% (1117GMT).
“The restructuring of our business will enable increased investment in creativity, technology and talent, enhancing our capabilities on the categories with the greatest potential for future growth,” said Martin Read, the group’s boss.
Other fallers include Playtech PLC (LON: PTEC), where shares dropped by 4.7% to 379p following an announcement that new Italian tax on gambling will reduce its 2019 adjusted underlying earnings. Shares are currently trading down 8.47% (1117GMT).
Debenhams PLC (LON: DEB) shares fell over 10%. Shares are currently trading at 3.93p (1117GMT).