The FTSE 100 was up marginally by 0.24% in the morning session on Tuesday at around 6,906. “The index’s hopes of rebuilding momentum were in part harmed by Tesco, which fell more than 3% following its full year update,” according to Connor Campbell, financial analyst at Spreadex.
“The FTSE 100 was hampered also by a rebounding pound. Sterling added 0.3% against the dollar and 0.2% against the euro, as it continues to try and claw back its recent losses,” Campbell said.
Things were no more exciting in the Eurozone than they were in the UK. The DAX dropped 0.1% and the IBEX 0.2%, but with the CAC climbing 0.2% to a fresh all-time high of 6,200.
Closing lower following a higher than forecast set of inflation readings and news that the Johnson & Johnson vaccine rollout is to be paused, the Dow Jones still finds itself only 120 points off its all-time peak.
FTSE 100 Top Movers
The top risers early on Tuesday are miners Antofagasta (2.81%) and Glencore (2.6%), as well as Anglo American (2.09%).
While at the other end, Tesco (-2.38%), following its results, BT Group (-1.82%) and Ferguson (-1.43%) are the day’s biggest fallers so far.
Tesco
Tesco felt the impact of the pandemic as 20% was wiped off the supermarket’s full-year profits even though it achieved “exceptionally strong” sales growth. The FTSE 100 company confirmed it made a profit before tax of £825m for the year to 27 February, 19.7% low than the year before, despite its sales in the UK growing by 7.7% to £39.4bn.
“In many ways it was a banner 12-months for Britain’s biggest supermarket, its pandemic offerings wooing customers away from its rivals and leading group sales 8.8% higher to £53.4 billion. Yet covid-related costs were an unavoidable factor, causing profits to plummet 20% to £825 million, turning off investors in the process,” said Campbell.