by 2 minutes Reuters (Reuters) – Concerns that a recent spike in coronavirus infections could slow economic growth dragged down London’s FTSE 100 on Wednesday, dimming what was set to be the blue-chip index’s sixth consecutive monthly rise. As he passes the London Stock Exchange in London, Britain, on October 1, 2008, a worker shelters from the rain under a Union Flag umbrella. Toby Melville/REUTERS/File Photo The FTSE 100 dropped 0.6 percent, with financials leading the way, down 1.1 percent. The index’s best winning streak since 2016 would be a fifth month of advances. The index has gained 7.7% so far this year and is only about 10% away from its all-time high. However, it has lagged its European peers, with the STOXX 600 staying near all-time highs as fears about inflation and rising COVID-19 infections stymie the recovery process. “Right now, the risks investors are ready to take are quite calculated (by) attempting to change bets based on how high inflation would rise vs how transitory the rise will be,” Bert Colijn, a senior economist at ING, said. Retailers fell 0.3 percent after an industry group warned that rising expenses due to COVID-19 and Brexit could contribute to a spike in broader inflation in the near future. “For the time being, the short-term consequences of inflation appear to be under control and accounted in,” Colijn added, “but there is still uncertainty regarding the spread of the new coronavirus type and concerns about how it may disrupt the recovery process.” The mid-cap index, which is focused on the local market, fell 0.1 percent. Dixons Carphone’s stock fell 1.4 percent despite the electricals retailer reporting a 34 percent increase in yearly profit. Indivior Plc, a developer of opioid addiction treatment, rose 9.4% to the top of the FTSE 250 index after announcing that its revenue and profit for 2021 will be much higher than its previous forecast. Pendragon, a car dealership, warned that vehicle orders were being delayed owing to a global semiconductor shortage, and that there would be more supply restrictions in the second half. Shashank Nayar contributed reporting from Bengaluru, and Subhranshu Sahu edited the piece. Continue reading
