FTSE 100: London falls from record high as retailers JD Sports, Next and Mike Ashley’s Frasers drag index down
The FTSE 100 started the week lower on Monday, as retailers dragged the index lower.
The capital’s premier index dropped 0.82 per cent to 7,836.71 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, closed at 20,409.38, down 0.89 per cent.
The fall takes the FTSE 100 away from its highest level it has ever reached, hit last Friday, of just over 7,900 points.
Soaring energy prices have whacked household finances this year and propelled inflation to multi-decade highs, likely tipping the UK economy into recession later this year.
FTSE 100 retailers slid during trading today with high street fashion retailer JD Sports dropping 2.9 per cent.
JD Sports announced large expansion plans last Thursday, marking “a new, distinct chapter in the growth story of JD,” which saw its share price climb soar. Despite today’s fall, it is still trading over ten per cent higher than the beginning of last week.
Other retailers also fell. Next dropped 2.6 per cent, Mike Ashley’s Frasers Group closed 1.2 per cent lower and, on the FTSE 250, ASOS closed down 5.7 per cent.
However, a big chunk of the FTSE 100 is made up of large energy producers, like Shell and BP, who have raked in bumper profits, prompting investors to pile into London-listed shares and pushing the index to its record high.
The wider index was impacted by a strong US jobs report, which raised the likelihood of continued rate hikes to calm the jobs market.
The American economy added more than 500,000 jobs last month, beating market expectations by around 300,000.
Investors are also gearing up for a big week of earnings, with oil giant BP updating investors in London and several top European banks including Credit Suisse releasing results.