Britain’s FTSE 100 index fell on Tuesday amid a broad-based sell-off as investors await the release of a range of global economic data due later this week, while Rolls-Royce shares rose after the engineering company forecast profitability growth, Reuters reports.
The domestic-focused FTSE 250 midcap index (.FTMC) was down 0.6 per cent. The exporter-focused FTSE 100 index (.FTSE) fell 0.6 per cent to a two-week low for the day. Among the FTSE 350’s major sectors, the personal consumption goods sector (.FTNMX402040) led the way, while Burberry Group (BRBY.L) fell 2.7 per cent after HSBC lowered its target share price. Andrew Jones, portfolio manager at Janus Henderson Investors, said:
It’s worth reminding ourselves that (for) the last couple of weeks, markets have been quite strong with the expectation that inflation’s finally starting to come off in most places. Rather than being any specifically negative news coming out… (its) a bit of a pause having had (that) rally.
Shares in Rolls-Royce (RR.L) jumped 6.2 per cent to a more than four-year high after the engineering company said it aims to become a much more profitable business.
Despite the recent weakness, both benchmark stock indexes are on track for monthly gains as market sentiment has been buoyed by hopes of monetary easing around the world, as well as rising bets that interest rates have peaked.
Investors will await UK mortgage lending data, eurozone inflation and the US Personal Consumption Expenditure (PCE) report – the Federal Reserve’s preferred measure of inflation – later this week.
