The FTSE 100 was lower on Thursday as investors prepared for a raft of vital US economic data set for release on Friday.
US PCE – one of the Fed’s key indicators of inflation – is set for release tomorrow alongside spending data. The instalments have the potential to set the tone for trade deep into next week.
There have been jitters in global stocks this week as investors asses just how long it will be until major central banks cut rates and provided a welcome boost to households and businesses.
The FTSE 100 was down 0.25% at the time of writing.
Sophie Lund-Yates, lead equity analyst, Hargreaves Lansdown, says the slow session for the FTSE 100 “follows a relatively choppy trading session in the US, ahead of President Joe Biden and Donald Trump’s closely watched debate in Atlanta later today. There’s also news of a marked slowdown in China’s industrial profits for May, adding fuel to concerns over a protracted slowdown in this important economy.”
Downbeat news from China inevitably weighed on the commodities sector which played a leading part in the weakness on Thursday.
“The FTSE 100 struggled to find direction as strength in energy and banking stocks was offset by weakness in pharmaceuticals, tobacco and mining,” said Russ Mould, investment director at AJ Bell.
GSK was the top faller after the US narrowed its age recommendation for the use of RSV vaccines. The development is the latest blow for investors who have recently been hit by news of cancer litigation in the US.
GSK shares were down over 5% on the day and have nearly erased all its gains for the year.
BP was marginally higher amid reports it was rolling back its push into clean energy by stepping down the pace of hiring.
“Reports suggest BP’s chief executive Murray Auchincloss is set to water down the company’s energy transition further and put a freeze on hiring,” Russ Mould said.
“Having replaced Bernard Looney, who unveiled the company’s net zero strategy to some fanfare at the start of 2020, Auchincloss had some space to make a more aggressive move in this direction.
“Poor recent share price performance had also put him under some pressure to take radical action with a diminished BP at risk of falling prey to a larger predator.”
BP shares were 0.9% at the time of writing.