ESTERDAY’s market optimism seemed to evaporate today in a cloud of worry about the pound, the UK economy and travel despair.
With airlines seemingly in chaos and Britain facing its first national train strike in 25 years, shares wobbled.
British Airways owner IAG lost 4p to 103p. Easyjet, facing some suggestions that CEO Johan Lundgren might have to follow chief operating officer Peter Bellew out of the door, was down 7p to 353p.
On Monday the FTSE rallied and Wall Street was closed for July 4 celebrations.
Today London gave up yesterday’s gains, with the FTSE 100 downj 72 points at 7159. The sell-off wasn’t just limited to travel stocks – fund manager M&G was the biggest loser, down 8p at 184p. Ad giant WPP was next, down 32 at 772p.
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Why you need to explore Türkiye’s Dalaman region for yourselfEven the banks, due to cash in from rising interest rates, are under pressure. Standard Chartered fell 25p to 599p.
The pound was again struggling to hold its own, losing 0.7 cents to $1.204. It was at $1.41 a year ago.
The euro is arguably doing even worse, sinking to $1.033 this morning, the weakest since 2003. Commentators blamed that on aggressive money printing for the last few years.
Neil Wilson at markets.com said: “Money for nothing can lead you to dire straits — and the European Central Bank is finding this out now.”
Rates will rise sharply, most expect.
He added: “Everyone is looking for peak inflation…but we’re probably at the point where it’s at its most dangerous as it becomes sticky. High and sticky inflation is the worst combination since it means expectations have been unanchored. This will only push the Fed and other central banks to inflict more pain.”
Back in the UK traders, bracing themselves amid rumours of possibly wide City job cuts to come, found some hope in Darktrace, up 6p at 293p.
On market debut last year the cyber security company jumped from 250p to 330p but has found life, like nearly everyone else, trickier since then.
