MARKET REPORT: Footsie rocked by worst weekly fall since August

The FTSE 100 clocked up its worst weekly performance since August amid a cocktail of economic and geopolitical woes.

On a bleak day of trading, the blue-chip index fell 1.3 per cent, or 97.39 points, to 7402.14 and the FTSE 250 dropped 1.1 per cent, or 180.41 points, to 17032.73.

That took the FTSE 100’s losses this week to around 2.5 per cent, the biggest fall since the index lost 3.5 per cent in the week ending August 18.

The sell-off came as investors fretted about war in the Middle East and the potential for interest rates to stay higher for longer.

Richard Hunter, head of markets at Interactive Investor, said many traders are unwilling to take new positions ‘ahead of a weekend when hostilities could yet worsen’.

Losses: On a bleak day of trading, the blue-chip index fell 1.3 per cent, or 97.39 points, to 7402.14

He added: ‘At the same time, investors were left somewhat bemused by comments from Federal Reserve chairman Jay Powell, who seemed to oscillate between implying no further rate hikes in the immediate future, yet leaving the door open for future rises should circumstances dictate.

‘Given the recent pressure on markets, investors had been hoping for final confirmation that the hiking cycle was over, and as such were disappointed by the comments.’

The London stock market enjoyed a smoother session following an incident on Thursday that halted trading in hundreds of smaller shares.

Investors made a dash towards safe-haven assets such as gold, which hit a three-month high, as Israel moved closer to launching an invasion of Gaza.

That sent Endeavour Mining up 4.4 per cent, or 74p, to 1760p.

Ingredients maker Treatt is on the hunt for a chief executive after its long-standing boss announced his exit. Daemmon Reeve has been at the company for 32 years and spent more than a decade in charge. He will leave at the end of this year, with Treatt’s finance boss Ryan Govender to take over until a permanent appointment is made. Shares were flat at 430p.

Rentokil returned to positive territory in early trading – a day after the pest control firm warned of weaker demand in North America. But shares, which sank 18.6 per cent on Thursday, eventually dropped off again, sliding 4.1 per cent, or 19.7p, to 464.2p.

Mobico – the company behind National Express – made gains after the German state rail group Deutsche Bahn on Thursday agreed to sell the UK bus and rail operator Arriva to the private equity firm I Squared.

Gerald Khoo, an analyst at the investment bank Liberum, said the deal shows that ‘there is still clear interest among infrastructure investors in acquiring public transport operators’.

He added: ‘We consider the read across to be especially relevant in the case of Mobico given its current depressed share price.’

Shares climbed 8.5 per cent or 4.8p to 61.3p.

AIM-listed ITM Power completed the sale of its joint business with the Dutch energy company Vitol to the net zero investment firm founded by the entrepreneur Jo Bamford.

The pair set up Motive Fuels in March last year to develop and roll out hydrogen refuelling stations in the UK.

It has been sold to HYCAP Group, meaning ITM will use the £28m it set aside for the joint business on other projects. Shares fell 4.7 per cent, or 3.28p, to 66.48p.

Scancell delayed publication of its results once again. The clinical stage biopharmaceutical company was due to publish its annual results on October 12 but delayed doing so until next Tuesday at the request of its auditor. And while BDO insisted there were no ‘material audit issues’, the firm said its results for the year to the end of April are still not completed. Shares fell 3.6 per cent, or 0.5p, to 13.5p.

This post first appeared on Dailymail.co.uk