FTSE 100 Ends Volatile Week Flat Amid Global Stocks Drop
FTSE 100 Flat as Economic Data and Middle East Tensions Weigh on Markets
Market Overview and Key Drivers
Aug 21 (Reuters) – The FTSE 100 was set to end a bumpy week on a subdued note, as investors weighed mixed economic data on Friday against a backdrop of prolonged Middle East tensions that have raised inflation fears.
The blue-chip FTSE 100 was flat at 10,747.56 points by 1006 GMT, while the midcap FTSE 250 climbed 0.4% to 24,596.70 points. Both the indexes were on course to end the week slightly lower.
Global Economic Influences
U.S. Treasury Actions and Bond Market Impact
• U.S. Treasury Secretary Scott Bessent said on Thursday he may further increase the government’s repurchases of Treasuries, attempting to jawbone a government debt market that was beginning to balk after the previous day’s surprise plan to double buybacks.
Global Stock and Bond Market Trends
• Global stocks were set for their biggest weekly fall since mid-July, as strain in global bond markets showed little sign of abating.
Sector Performance
Metals and Mining
Precious and Industrial Metals
• Precious and industrial metal miners rose as gold and copper prices edged higher against a dollar weakened by the U.S. Treasury’s bond buyback move. Antofagasta and Endeavour Mining rose 6.4% and 4%, respectively, leading gains in the FTSE 100. [MET/L] [GOL/]
Retail and Services
Retail Sales Trends
• British retail sales fell back as expected in July after a surge in June when hot weather boosted demand for fans and air conditioners, while supermarkets offered promotions alongside the men’s soccer World Cup, official figures showed.
Services Sector Resilience
• Separately, Britain’s services sector, the engine of its economy, perked up unexpectedly this month, according to a survey, that added to signs of resilience despite the conflict in the Middle East.
Monetary Policy and Company News
Bank of England Outlook
• The Bank of England is widely expected to hold interest rates next month but traders are pricing in at least one 25-basis-point rate hike by the end of 2026.
Notable Movers
JD Sports
• JD Sports rebounded 6.6%, recovering from a drop of more than 14% on Thursday after the sportswear and fashion retailer cut its profit outlook.
Hunting
• Energy services firm Hunting sank 13.4% as it lowered its annual core profit forecast after delays to a major Kuwait Oil Company tender process.
(Reporting by Anand Gopal and Sruthi Shankar in Bengaluru; Editing by Vijay Kishore)
