Wall Street edges higher as FTSE 100 falls flat despite recovery hopes
Wall Street opened higher this afternoon as investors turned their attention to key business surveys at the end of a volatile week of trading.
The Dow Jones rose 0.11 per cent on open and the S&P 500 gained 0.23 per cent, while the tech-heavy Nasdaq pushed 0.59 per cent higher.
It came after the London’s FTSE 100 dropped slightly this morning despite a surge in April retail sales as B&Q owner Kingfisher fell to the bottom of the index.
The blue-chip index dropped 0.3 per cent in early trading, despite takeaway giant Just Eat rising to the top of the index with a two per cent leap.
The FTSE clawed back these losses to settle flat by mid-afternoon, up a marginal 0.07 per cent.
The index declined despite retail sales soaring in April as Britain came out of its third lockdown.
The amount of money changing hands in stores jumped 9.2 per cent in April compared with March, as restrictions eased, and most retailers reopened.
Meanwhile, the domestically focused mid-cap FTSE 250 also fell by 0.2 per cent, as Investec posted a ten per cent drop in annual profit. It also settled flat in afternoon trading.
Market movers
The morning’s biggest winner was engineering firm Weir Group, who rose 1.6 per cent, followed by Antofagasta, up by 1.5 per cent.
Sportswear giant JD Sports and manufacturer Melrose Industries also rose 1.3 per cent and 1.1 per cent respectively.
Kingfisher was the morning’s biggest faller, dropping by 3.6 per cent, followed by British Land’s 3.1 per cent hit.
Meanwhile, Hargreaves Lansdown and water company Severn Trent both dipped by 1.9 per cent and 1.4 per cent respectively.
“It’s been a lacklustre start for the FTSE 100 despite some stellar retail sales figures showing consumers splurged big time in April,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
“Caution appears to be the name of the game for many investors, with fears about rising inflation overhanging the market.”
Around the world
Wall Street continued its gains today, extending its recovery from the previous day’s session.
It came as investors turned their attention to the US manufacturing and service sector PMI for signs of economic recovery following the pandemic.
The figures showed US factory activity gathered speed in early May amid strong domestic demand, though backlogs of work were beginning to pile up.
Data firm IHS Markit said its flash US manufacturing PMI increased to 61.5 in the first half of this month.
That was the highest reading since the survey was expanded to cover all manufacturing industries in October 2009, and followed a final reading of 60.5 in April.
Asian stocks rallied today following Wall Street’s overnight lead, as investors softened inflation concerns and the prospects of an early tapering of stimulus by the Fed.
Japan’s tech-heavy Nikkei shot up 0.8 per cent while Taiwan’s stock index gained 1.2 per cent.
Meanwhile, Chinese blue chips lost 0.8 per cent as the index was weighed by financials and capping broader gains in the region.