Stock markets: FTSE 100 dips as BHP prepares to leave index
13:02, 21 January 2022
UK stocks dropped on Friday morning, with the FTSE 100 index pulled down by mining stocks such as BHP. This came as the company prepared to leave the index following its December announcement of a unification attempt between its Australian and UK arms.
European stocks reflected the same sentiment, with the Euro Stoxx 50 lagging behind on the back of lacklustre company earnings. This, combined with investor anxiety about the looming timeline of monetary policy tightening, contributed to investor sentiment being considerably dampened.
Overnight in Asia, Hong Kong’s Hang Seng (HK50) index climbed up, however the US S&P 500 (US500) index dipped.
What’s interesting today: British restaurant and public house chain The Restaurant Group (LON: RTN) climbed up by approximately 2.8% on Friday, following the group outlining their upbeat yearly forecasts.
M&C Saatchi (LON: SAA) has announced that their Financial Conduct Authority (FCA) investigation would now be put to rest, and no enforcement action would be implemented.
Why are stocks down today?
Mining stocks pull market down: The FTSE 100 index was lowered on Friday by mining stocks such as BHP as it prepared to leave the index.
What is your sentiment on UK100?
- What this means: Mining companies have been some of the most affected during this pandemic, especially in China, where demand for metals and ores has been among the highest in the world. However, with property developers such as Evergrande facing tough times this past year, BHP leaving the FTSE 100 index comes as a fresh blow to the mining sector, which is still struggling to regain its feet post-Omicron.
Stock markets: key highlights
- The FTSE 100 (.UK100) index dropped 0.91% to 7516.0 points.
- The Euro Stoxx 50 (.EU50)index fell 1.22% to 4247.2 points.
- Germany’s DAX (.DE40) index dipped 1.18% to 15724.5 points.
- France’s CAC 40 (,FR40) index inched lower 1.14% to 7112.2 points.
- The leading sectors in the UK were energy and consumer non-durables.
- US S&P 500 futures fell 0.24% to $4464.
- The CBOE Volatility Index, or VIX (.VIX), a measure of expected fluctuations in US stocks, increased to 25.59
- The US dollar index dropped to $95.84
- The US 10-year bond yield index also fell to 1.811%
Top stock gainers: UK and Europe
- The top stock gainers in the UK were BP, British American Tobacco and Anglo American
- BP extended its gains following oil prices hitting a seven-year high recently
- British American Tobacco shares rallied following the company holding on to its Global Top Employer position for five consecutive years
- Anglo American shares increased following the company recently announcing a Brazilian mine partnership with Vale
- The best performing companies in Europe were Prosus, Adyen B.V. Parts Sociales and Prudential
- Prosus shares extended their gains following the company being upgraded to “buy” by Goldman Sachs
- Prudential shares increased following the company launching AR filters on their social media pages to increase financial literacy
Top stock losers: UK and Europe
- The worst performing companies in the UK were Dechra Pharmaceuticals, Halma and Croda International
- Dechra Pharmaceuticals struggled to recover its losses following a lackluster rating by BNP Paribas recently
- Halma shares dipped for the last several days following a “hold” rating from a number of brokerages
- Croda International shares tumbled following the company’s recent call to divest of its industrial chemicals unit
- The top stock losers in Europe were Santander, Roche and Novo Nordisk
- Santander shares dipped following the bank’s Marlow High Street branch being replaced by a Laurents Deli
- Roche recently brought back a Huntington’s disease medicine
- Novo Nordisk pledged to focus more on their obesity-fighting projects
Stocks news: what you need to know today
- Indian stocks drop for the fourth consecutive day amidst widespread sell-off
- BIOCON inches up to a one-month high, as third quarter results emerge
- Hindustan Unilever shares rally following robust quarter
Markets in this article
British American Tobacco - GBP
BP - GBP
Croda International plc