Economic news

FTSE 100 Set for Fifth Straight Session of Declines

  • FTSE 100 down 0.1%, FTSE 250 adds 0.3%
  • Persimmon down after weighing $1.28 bln bid for Legal & General's Cala unit
  • Redcentric in early talks for sale, shares up

May 28 (Reuters) - The FTSE 100 edged lower on Tuesday as investors awaited more economic data and comments from Bank of England Governor Andrew Bailey later in the week, while gains in precious metal miners kept declines in check.

The blue-chip FTSE 100 was down 0.1%, headed for a fifth consecutive session of losses. Meanwhile, the mid-cap FTSE 250 edged up 0.3%, on track for a second straight session of gains.

"People are coming back from their holiday and they're just trying to find their feet. Equity markets in the May-June period have some sort of corrections especially after a nice rally," said Axel Rudolph, senior market analyst at IG Group.

"We've got three U.S. Federal Reserve members speaking today and that will probably drive markets more than any UK data today."

Market focus this week will be on comments from BoE Governor Bailey on Thursday for more insights into the timing of the central bank's first interest rate cut.

Traders are pricing in a 50% chance of the first rate cut in September, with a cut fully priced in only in November.

Precious metal miners jumped 1.7% as gold prices held steady with the dollar easing.

Online supermarket Ocado was the top gainer on FTSE 100 with a 6.8% jump as JP Morgan raised the target price on the stock.

Legal & General Group rose 1.3% after Sky News reported homebuilder Persimmon was weighing a 1-billion-pound ($1.28 billion) bid for the insurer's Cala unit.

Persimmon was down 2.1% and was among top losers on the FTSE 100.

Redcentric jumped 5.3% after the IT services group said it is in early stage talks over the sale of the company to Milan-listed Wiit SpA.

Meanwhile, prices in British shops rose at the slowest pace in 2-1/2 years this month, according to the British Retail Consortium.

Reporting by Pranav Kashyap in Bengaluru; Editing by Savio D'Souza and Varun H K

Source: Reuters


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