LONDON — Britain’s benchmark share index, the FTSE 100, is marginally lower on Wednesday morning, extending the losses seen on Tuesday, following Prime Minister Theresa May’s call for a snap general election.
On Tuesday, the FTSE 100 was down by close to 2.5%, marking its biggest one-day move in either direction since June 27, 2016, dragged lower by a stronger pound and the falling price of commodities, which weighed on the mining-heavy index.
Those losses have continued on Wednesday, but to nowhere near as large an extent. By around 8.20 a.m. BST (3.20 a.m. ET) the index is down by close to 0.2% at 7,133 points, as the chart below illustrates:
The FTSE’s small drop comes “after losses on Wall St amid mixed corporate results overnight (Yahoo! beat, IBM missed), another leg down for Crude Oil drove a poor session in Asia and additional GBP strength took FTSE futures lower,” Mike van Dulken of Accendo Markets wrote in a morning email to clients.
“Copper may be off its worst levels, but remains in a clear downtrend, although a rebound for Iron Ore offers some respite for a commodity sector troubled by scepticism about stimulus.” Falling metals had on Tuesday hit British-listed mining firms hard, with BHP Billiton, Anglo American, and Glencore all losing more than 5% on the day.
In early trade on Wednesday luxury fashion retailer Burberry is providing the biggest drag to the FTSE, trading lower by more than 5%, despite what independent retail analyst Nick Bubb called “in-line” fourth quarter and second half results. Retail revenue in the second half rose 3% to £1.26 billion but total revenue dropped 1% to £1.6 billion.
Outgoing CEO Christopher Bailey said: “In an uncertain environment, we continue to take action to strengthen the brand and reposition Burberry for growth.”
At the other end of the FTSE, Associated British Foods — the owner of high street stalwart Primark — is leading the index, gaining more than 3% after reporting strong half-year results. ABF’s revenue rose 7% to £7.3 billion when you strip out currency gains and operating profit rose 23% to £652 million.