FTSE 100 expected to make tentative rebound after mixed retail numbers
The FTSE 100 is expected to make a tentative start on Tuesday as investors continue to fret about rising coronavirus cases and the effects of restrictions, such as Britain’s worst retail sales figures in 25 years.
London’s blue chip index was called six points higher by spread-betting broker CMC Markets a day after it dropped almost 75 points or 1.1% to finish at 6,798.48.
UK retail sales in 2020, released by the British Retail Consortium (BRC), fell 0.3%, the biggest decline since records began in 1995, as the effect of lockdowns on non-essential shops outweighed a switch to online spending. December sales, however, were up 1.8% on the year before, up from 0.9% in November.
Overnight, Wall Street joined in Europe’s selling session, with the Dow Jones slipping 89 points or 0.3% to 31,008.69, down for the second trading day in succession.
The broader S&P 500 fell 0.7% and the tech-heavy Nasdaq Composite tumbled 1.25%, with all the FAANG stocks in the red.
This was partly due to fears that big tech companies, in particular social media firms, could come under tougher regulation, said market analyst David Madden at CMC Markets.
“President Trump’s Twitter and Facebook accounts have been suspended because of allegations that his comments sparked the riot in the Capitol building last week. People have been questioning the role of the social media firms in light of the incident, so the groups have found themselves under extra scrutiny.”