Markets down as UK investors suffer a case of the jitters
28 January 2022
Markets down as UK investors suffer a case of the jitters
- FTSE 100 down over 110 points today amid a number of concerns
- Ocado down 8%
- Associated British Foods and Barclays down 3%
Sophie Lund-Yates, equity analyst at Hargreaves Lansdown:
“The FTSE 100 is down 1.5% today, taking the heat out of more recent gains. Some of the UK’s biggest companies, including major financial firms, have seen their share prices rocked. Investors are likely being unnerved by a combination of rising Ukraine tensions, as well as further speculation about the extent and timing of interest rate increases. The ongoing PR disaster in Downing Street is likely to be doing little to prop UK sentiment up either.
Some of the UK’s best-known retailers, including Primark owner, Associated British Foods are facing a downwards trend today. That’s hardly surprising given the gloomy picture painted by the most recent retail figures, which suggests fighting for high street footfall is about to get a whole lot tougher. Inflationary pressures mean new frocks are likely to get rubbed off shopping lists too. Grocer Ocado is also having a tough day. Its announcement about improving its grocery picking technology earlier this week has done little to allay concerns. It may be that investors are concerned that rising interest rates will affect how much companies are prepared to borrow, which could mean Ocado will be less effective in striking deals with retail partners looking to expand.
Either way, today is a blip on the FTSE 100, and while the current challenges are unlikely to disappear overnight, this a slight shock to the system at this stage rather than anything more sinister.”
