Having opened up the day trading higher following inflation and bitcoin-inspired setbacks, the FTSE 100 has lost some ground in mid-morning trading on Thursday. Down by 0.25% it is trading at 6,933, someway of the 7,000 marker.
“While the markets don’t want central banks to start raising interest rates too soon, they’re also clearly worried about rising prices running away and creating a situation where policymakers have no choice but to act,” said Russ Mould, investment director at AJ Bell.
“Overnight minutes from the US Federal Reserve suggesting some members favour a tapering of asset purchases may actually reassure investors that the Fed can keep the economy bubbling away without letting it overheat.”
Mould also suggests it is too soon to say the FTSE 100 is clear of any risks associated with the ongoing Covid-19 situation.
“The risks associated with the pandemic haven’t gone away – while the developed world finally seems to be gaining some control over Covid-19 the situation is very different in emerging markets and this could be a threat to the commodity-focused firms on the FTSE 100, given a lot of demand comes from developing countries,” Mould said.
FTSE 100 Top Movers
Experian (2.85%), Associated British Foods (1.66%) and Auto Trader (1.55%) are the biggest risers on the FTSE 100 so far on Thursday.
While, at the bottom end, Fresnillo (-3.21%), Tesco (-2.99%) and Rolls-Royce (-2.91%) have lost the most ground.
Kingfisher
Kingfisher (LON:KGF), owner of B&Q and Screwfix, announced on Wednesday that its sales reached £3.4bn as lockdown restrictions encouraged people to take on the challenge of carrying out their own home renovations. The company’s total sales rose sharply by 61.9% during Q1 to the end of April.
Specifically, B&Q saw its sales jump by 82.7%, bringing in £121.2m, while Screwfix made £615m, as consumers made preparations ahead of the summer. Despite its strong sales, the FTSE 100 company said its supply chains were severely disrupted by the container blocking the Suez Canal back in March.
