Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
London open: Stocks fall after US losses; B&M bucks trend
(Sharecast News) - London stocks fell in early trade on Wednesday, taking their cue from a weak session on Wall Street following the release of disappointing US data. At 0905 BST, the 100 was down 0.4% at 7,293.15.
Richard Hunter, head of markets at Interactive Investor, said: "Attempts at sustaining recent rallies were short-lived, with investors unable to avoid the pervasive fear of a global slowdown.
"After a strong opening the major indices were unable to hold on to the gains, with a disappointing [US] consumer confidence reading taking the wind out of investors' sails. The reading of 98.7 was below estimates of 100 and down from 103.2 in May, with the immediate outlook for the next six months also dipping. At the same time, inflation expectations remain elevated for the next year.
"With the consumer being central to US economic growth, the recent raft of pessimistic readings has led to some concerns that sentiment could become self-fulfilling as consumers hunker down in the face of higher prices, especially fuel and food. The Federal Reserve will of course be aware of the deteriorating sentiment, but for the moment is showing no signs of abandoning its primary objective of battling inflation head-on.
"The debilitating effect of the consumer confidence reading resumed the main markets' decline and, in the year to date, the Dow Jones remains down by 15% and the S&P 500 by 20%. The Nasdaq is on course for its worst quarterly performance since 2008 and is currently down by 28%."
In equity markets, greeting cards and gifts retailer Moonpig was weaker after it posted a drop in full -year adjusted pre-tax profit and revenue.
Cruise operator Carnival tumbled after Morgan Stanley slashed its price target on the shares and reiterated its 'underweight' rating.
British Land and Land Securities both slid after rating downgrades at Bank of America Merrill Lynch.
Drinks maker Diageo was knocked lower by a downgrade to 'sell' from 'hold' at Deutsche Bank, while Anglo American was off after a downgrade to 'hold' from 'buy' by the same outfit.
On the upside, Severn Trent and United Utilities were higher, recovering some ground after being hit on Tuesday by a research note from JPMorgan.
Variety goods retailer B&M European Value Retail was also in the black even as it said that UK first-quarter like-for-like revenue fell 9.1% as "exceptionally high sales" last year during Covid lockdowns distorted comparatives.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.