MARKET REPORT: FTSE 100 clocks up fifth straight day of losses as rate-hike fears mount

The FTSE 100 clocked up a fifth straight day of losses as investors fretted over further interest rate rises.

With the bond markets in a tailspin, London’s blue-chip index fell by 0.6pc, or 46.67 points, to 7310.21 while the FTSE 250 was down by 1.2 per cent, or 224.71 points, to 18,356.07.

The Footsie has now shed more than 4 per cent of its value – or 308 points – in the past five sessions and is set for one of its worst weeks of the year.

But it is still some way off from the week ending March 17 when the index slumped by more than 5 per cent as the global banking crisis unfolded.

This week’s losses come amid jitters about the health of the global economy.

More pain: With the bond markets in a tailspin, London’s blue-chip index fell by 0.6%, or 46.67 points, to 7310.21 while the FTSE 250 was down by 1.2%

While inflation in the UK fell from 7.9 per cent in June to 6.8 per cent in July, the financial markets have predicted interest rates could hit 6 per cent this year.

The battle to contain soaring prices is being felt around the world. The US Federal Reserve’s latest minutes from its meeting suggest another rate hike could be in store.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: ‘Policy-makers only have the blunt tools of rate hikes to do it, so they risk sending splinters of pain across the wider economy.’

And concerns about China show few signs of easing. Richard Hunter, head of markets at Interactive Investor, said: ‘The high rate of youth unemployment, tepid consumer spending, deflation and weakening trade numbers are playing their part in keeping the lid on any signs of optimism.’ 

Back in London, miners made gains following slightly higher metal and crude oil prices.

Rio Tinto rose 1.7 per cent, or 77p, to 4636p, Glencore was up 1pc, or 4.05p, to 423.55p and Antofagasta added 0.2 per cent, or 2.5p, to 1422.5p.

Stock Watch –  Kin and Carta

Kin and Carta surged as the tech consultancy firm eyed higher profits on the back of streamlining its business.

It said profit for the year to the end of July looked to have been between £17.9million and £18.4million, ahead of City forecasts, and put the better-than-expected performance down to ‘improved efficiencies’.

And it said that its revenue is expected to grow in the first quarter of the new financial year.

The shares soared 26.5 per cent, or 16.8p, to 80.3p.

Shares in Ladbrokes owner Entain fell 4.1 per cent, or 50.6p, to 1174p, after its US joint venture partner MGM Resorts announced that it would launch a rival online betting site in the UK.

MGM and Entain together run the Bet MGM brand, one of the biggest betting operators in America. 

But MGM’s move into British soil spooked investors as it said it would not be using Entain technology to launch the site.

Instead, it will use Leo Vegas, a Swedish gambling firm it bought in 2022.

Bank of Georgia reached a fresh record high, surging 13.2 per cent, or 425p, to 3625p ,after the retail lender outlined plans for a share buyback programme worth £19million. In June it completed its previous £78miller repurchase scheme.

The plans came as Bank of Georgia reported a 41 per cent rise in first-half profit.

Dennis Schulz, the boss of ITM Power hailed the green energy firm’s turnaround progress as he said more products left its factory over the past six months than in the previous 22 years.

Group revenue of £5.2million in the year to the end of April beat forecasts of £2million. Shares rose 3.7 per cent, or 3.26p, to 90.38p.

Housing developer Watkin Jones said that it had sold three private rented sector assets in Sheffield and Manchester that it no longer needed to investment firm L1 Capital. The shares fell 0.8 per cent, or 0.4p, to 47.55p.

Plastic and paperboard packaging firm Robinson made a loss of £900,000 in the first half of 2023, having reported a £2.8million profit the year before.

The Chesterfield-based firm, which sells products to consumer goods group giants such as Procter & Gamble and Unilever, said revenue also slid 4.3 per cent to £24.3miller. 

Shares dipped 2.6 per cent, or 2.5p, to 92.5p.

This post first appeared on Dailymail.co.uk