FTSE Printing Two Month Lows Ahead Of Election Risk -

FTSE Printing Two Month Lows Ahead Of Election Risk

Jul 02, 2024Jeremy ParkinsonFinance, No picture0

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London’s FTSE 100 fell to a two-month low on Tuesday as investors remained cautious before the parliamentary elections. However, an increase in oil prices helped offset the decline. The blue-chip FTSE 100 was down 0.5% at 8,126.96, dropping below the important 8,200 mark. Investors were hesitant to make significant investments ahead of the UK parliamentary elections on Thursday, where it appears that the Conservatives will be replaced after 14 years.Major sectoral indexes were mostly trading lower, except for energy shares. BP saw a gain of more than 1% as oil prices remained near two-month highs due to expectations of increased fuel demand during the summer travel season and potential U.S. interest rate cuts. On the other hand, GSK slipped 1.2% after a Delaware judge denied a request by the drugmaker and others to appeal a ruling allowing over 70,000 lawsuits claiming that the heartburn drug Zantac cause cancer. The latest inflation reading revealed that May inflation had dropped to the Bank of England’s 2% target for the first time in nearly three years, but investors do not anticipate it to benefit Prime Minister Rishi Sunak’s prospects in the poll.Sainsbury, the UK’s second-largest supermarket, experiences a decline in its stock by as much as 2% to 252.6p, reaching its lowest point since March 20. The decrease is attributed to a weather-related weakness in non-food sales, which partially offsets the strong demand for groceries. In the first quarter, general merchandise and clothing sales dropped by 4.3%, while sales at the Argos business fell by 6.2%. Despite this, the company maintains its forecast for retail adjusted operating profit for the fiscal year. Overall, the stock has seen a decline of approximately 16% so far this year.United Utilities, a UK water firm, saw a 2.3% drop in its shares to 963.8p, making it one of the top losers on London’s FTSE 100 index. This decline comes after Manchester Ship Canal, the owner of a Victorian-era canal in northern England, won an appeal in the UK Supreme Court, allowing it to sue United Utilities over untreated sewage discharges into waterways. United Utilities has stated that it is assessing the implications of the ruling and seeking clarification on the circumstances under which private owners can bring proceedings regarding discharges. As a result of these developments, United Utilities’ stock has reached its lowest point since October and is down approximately 9% year-to-date.

Technical & Trade View
FTSE Bias: Bullish Above Bearish below 8225