FTSE 100 closes lower but US stocks rebound from slump and brush off dire data
The FTSE 100 closed lower as an argument with the EU over a vaccine supply escalates, while Wall Street is trading higher following a bruising day.
London’s blue-chip index ended down 0.6 per cent to 6,526 points after global equities dropped sharply overnight.
European Council President Charles Michel warned drugmakers that it would use all legal means or even possibly block exports unless they’ve agreed to deliver the jabs.
Wall Street shrugged off dismal employment and GDP data, with the benchmark S&P 500 up 1.9 per cent while the Dow rose 1.7 per cent to 30,762 points.
It marks a significant rebound after US markets fell sharply on Wednesday with the Dow Jones posting its biggest fall since October.
Even the Reddit Gamestop frenzy, which has seen retail investors pile into the stock to get back at hedge funds, could not hold off the slump.
Hedge funds with short positions in the retailer and other nostalgia stocks have reportedly closed long positions in stocks to cover their losses.
“Large hedge fund short positions were getting liquidated, prompting margin calls, and the cashing out of more profitable positions to fund the losses being caused by the Reddit surge in the likes of heavily shorted stocks like GameStop as well as AMC Entertainment, owners of Odeon Cinemas amongst others, which have seen huge gains, amidst big eye watering price swings,” Michael Hewson, chief market analyst at CMC Markets said.
Miner led the FTSE’s biggest risers with Fresnillo, Glencore and Anglo American leading the charge.