London open: Political instability hits stocks early on

10th Jun 2024 08:42

(Sharecast News) - UK stocks followed European markets lower on Monday with investor risk appetite dampened by election news from the continent as far-right parties advanced.

"A combination of the unexpected news from overseas and a lack of buying appetite led to a weaker opening for the premier index, with a broad markdown of stocks in cyclical and defensive sectors alike," said Richard Hunter, head of markets at Interactive Investor.

The FTSE 100 was down 0.35% at 8,213.58 after an hour's trade.

European stock markets were reacting to the advance of far-right anti-immigrant political parties in European Parliament elections that saw France President Emmanuel Macron call a snap poll in response to his party suffering a heavy defeat.

"For a fiscally challenged France, new parliamentary elections add a level of uncertainty. This could turn into a concern for markets," said analyst Holger Schmieding at Berenberg.

No major economic releases were scheduled in the UK while in the US the market spotlight would be on the results of a trio of Treasury debt auctions.

Meanwhile, US stock futures were pointing to a negative start on Wall Street ahead of the Federal Reserve's policy meeting on Wednesday - though no change is expected.

Tech giant Apple will likely to be in focus ahead the start of its five-day Worldwide Developers Conference or WWDC, with chief executive Tim Cook tipped to give some big AI-related announcements at his keynote speech on Monday.

Ashtead gains

Ashtead was among the best performers on rumours that the equipment rental firm is considering transferring its listing to the US, where it generates the bulk of its revenues.

AstraZeneca was rising after analysts at Berenberg lifted their target price on the shares from 13,000p to 15,000p.

Banking stocks were mostly under pressure early on, with NatWest, Barclays and Lloyds all trading in the red, though HSBC outperformed with a small gain.

ME Group International fell sharply despite reporting a positive first-half trading performance, with a 4.6% increase in group revenue and a 10.3% rise in profit before tax compared to the same time last year, driven by growth in its photobooth and laundry operations.

Chemring gained after signing a 15-year deal partnering deal with US defence firm Northrop Grumman for the supply of HMX energetic material used in its missile programmes along with an order for the product worth $83m as demand for military weapons increased globally.

Market Movers

FTSE 100 (UKX) 8,213.58 -0.39%

FTSE 250 (MCX) 20,484.00 -0.35%

techMARK (TASX) 4,833.57 -0.20%

FTSE 100 - Risers

M&G (MNG) 200.20p 1.16%

Rolls-Royce Holdings (RR.) 461.10p 1.05%

Ashtead Group (AHT) 5,600.00p 0.90%

Flutter Entertainment (DI) (FLTR) 14,935.00p 0.88%

Tesco (TSCO) 308.00p 0.42%

HSBC Holdings (HSBA) 697.60p 0.42%

Marks & Spencer Group (MKS) 309.60p 0.36%

CRH (CDI) (CRH) 6,098.00p 0.33%

AstraZeneca (AZN) 12,600.00p 0.30%

BP (BP.) 465.20p 0.27%

FTSE 100 - Fallers

NATWEST GROUP (NWG) 310.40p -2.24%

Reckitt Benckiser Group (RKT) 4,428.00p -1.93%

Aviva (AV.) 467.70p -1.93%

Smith (DS) (SMDS) 363.60p -1.89%

Fresnillo (FRES) 550.50p -1.79%

Rentokil Initial (RTO) 414.30p -1.68%

Lloyds Banking Group (LLOY) 53.90p -1.68%

Schroders (SDR) 379.00p -1.40%

Barclays (BARC) 213.75p -1.36%

Smurfit Kappa Group (CDI) (SKG) 3,652.00p -1.35%

FTSE 250 - Risers

Indivior (INDV) 1,304.00p 2.19%

Auction Technology Group (ATG) 562.00p 1.81%

Apax Global Alpha Limited (APAX) 158.00p 1.54%

CMC Markets (CMCX) 271.00p 1.50%

Paragon Banking Group (PAG) 759.00p 1.40%

SDCL Energy Efficiency Income Trust (SEIT) 69.10p 1.32%

Asia Dragon Trust (DGN) 405.00p 1.25%

Renishaw (RSW) 4,090.00p 1.24%

Great Portland Estates (GPE) 341.50p 1.18%

W.A.G Payment Solutions (WPS) 72.80p 1.11%

FTSE 250 - Fallers

Me Group International (MEGP) 165.00p -3.17%

Telecom Plus (TEP) 1,872.00p -2.75%

Aston Martin Lagonda Global Holdings (AML) 160.30p -2.38%

Target Healthcare Reit Ltd (THRL) 76.30p -2.30%

Crest Nicholson Holdings (CRST) 244.20p -2.24%

Ferrexpo (FXPO) 45.00p -2.17%

RHI Magnesita N.V. (DI) (RHIM) 3,140.00p -2.03%

Softcat (SCT) 1,668.00p -2.00%

SThree (STEM) 421.50p -1.98%

Baltic Classifieds Group (BCG) 230.50p -1.91%