Markets have not been in a great mood of late, and Wednesday is no different, as the FTSE 100 is down by 0.44%, trading at 7,093.
“Yesterday we saw similar erratic behaviour with the index falling and then trying to claw back towards the end of the day,” says AJ Bell financial analyst Danni Hewson.
“This suggests that investors are happy to buy on the dips, but it also suggests we’re entering a more fragile state for the market.”
“Value stocks trumped defensive names on the FTSE 100 on Wednesday, with energy, banks and miners trying their best to move forward, while pharmaceuticals, tobacco and consumer goods acted as a drag on the index,” Hewson said.
Inflation is front of mind once again, with the latest UK figures considerably higher than expected, and following a similar trend in the US. Inflation is good for commodity producers and stokes the fire for interest rates hike, which benefits banks – hence explaining the top movers on the FTSE 100.
FTSE 100 Top Movers
Major banks Natwest (1.64%) and Lloyds (1.31%), along with Barratt Homes (1.03%) are propping up the FTSE 100 on Wednesday in the midst of a troubling week for the index.
While at the bottom end, Experian (-2.35%), Rolls-Royce (-2.30%) and Intertek (-1.78%), make up the bottom three companies during the morning session.
