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
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 in the red as power firms slide
(Sharecast News) - London stocks fell in early trade on Tuesday, with sentiment dented by disappointing results from Snap across the pond, and power firms under the cosh. At 0840 BST, the FTSE 100 was down 0.9% at 7,447.04.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: "Investors are getting set for another twist on the rollercoaster with Monday's gains set to be largely erased after Snap interrupted the brief rally with a very downbeat snapshot.
"The FTSE 100 and FTSE 250 have opened 0.9% lower while in Japan the Nikkei slid by 1% and the Hang Seng in Hong Kong dropped by 2%.
"The owner of Snapchat notched up fresh worries after the bell on Wall Street by lowering its revenue and profits forecasts for June and blaming the rapidly weakening economic environment. That sent the stock into a tailspin, falling more than 30% in after-hours trading, pulling down other battered tech stocks with it, with Meta falling 7% and Pinterest by 11%."
On home shores, data from the Office for National Statistics showed that government borrowing fell more than expected in April but remained above pre-Covid levels.
Government borrowing fell by £5.6bn from the previous year to £18.6bn, coming in below analysts' forecasts of £18.8bn and the Office for Budget Responsibility's forecast of £19.1bn. Nevertheless, it remained above pre-Covid levels - up by £7.9bn compared to April 2019 - and was the fourth-highest April borrowing since monthly records began.
The ONS cut its estimate for borrowing in 2021/2022 by £7.2bn to £144.6bn.
Paul Dales, chief UK economist at Capital Economics said: "The lower-than-expected public borrowing and the downward revisions to borrowing in 2021/22 "will only add to the pressure on the Chancellor to go big when finalising the imminent support package for households".
"We think any support will be small and targeted rather than big and widespread," he added.
In equity markets, SSE, Drax and Centrica all slid following a report that Chancellor Rishi Sunak has ordered a plan for a windfall tax on electricity generators. In addition, SSE and Drax were knocked lower by downgrades to 'neutral' and 'sell' respectively at Citi.
Elsewhere, Royal Mail was under the cosh after a downgrade to 'sell' at Peel Hunt.
On the upside, SSP rallied after the Upper Crust owner said it swung to an interim core profit as the travel sector rebounded from Covid restrictions but warned inflationary pressures would increase in the second half.
Convenience food manufacturer Greencore also rose after saying it swung to an interim profit as revenues grew and that it would resume the return of £50m to shareholders.
Cranswick was up as the food producer reported full-year revenues above £2bn.
Market Movers
FTSE 100 (UKX) 7,447.04 -0.88% FTSE 250 (MCX) 19,928.78 -1.08% techMARK (TASX) 4,394.38 -0.47%
FTSE 100 - Risers
Barclays (BARC) 160.72p 1.89% Airtel Africa (AAF) 151.20p 1.61% Mondi (MNDI) 1,519.50p 1.20% B&M European Value Retail S.A. (DI) (BME) 424.90p 0.45% Vodafone Group (VOD) 126.66p 0.44% Sage Group (SGE) 672.00p 0.21% Relx plc (REL) 2,305.00p 0.17% United Utilities Group (UU.) 1,130.50p 0.09% BAE Systems (BA.) 763.00p 0.00% Smurfit Kappa Group (CDI) (SKG) 3,095.00p 0.00%
FTSE 100 - Fallers
SSE (SSE) 1,767.00p -7.80% Royal Mail (RMG) 314.80p -5.18% ITV (ITV) 71.66p -3.63% WPP (WPP) 934.60p -3.19% Rolls-Royce Holdings (RR.) 80.70p -2.93% Harbour Energy (HBR) 434.70p -2.71% Melrose Industries (MRO) 118.35p -2.59% Flutter Entertainment (CDI) (FLTR) 9,114.00p -2.44% Coca-Cola HBC AG (CDI) (CCH) 1,699.50p -2.24% DCC (CDI) (DCC) 5,686.00p -2.24%
FTSE 250 - Risers
SSP Group (SSPG) 250.10p 6.11% Cranswick (CWK) 3,258.00p 3.17% Hill & Smith Holdings (HILS) 1,400.00p 2.94% Moonpig Group (MOON) 268.80p 2.91% Greencore Group (CDI) (GNC) 109.70p 2.24% Big Yellow Group (BYG) 1,314.00p 2.18% Shaftesbury (SHB) 589.00p 1.64% Trustpilot Group (TRST) 110.00p 1.57% Bytes Technology Group (BYIT) 445.80p 1.41% Rank Group (RNK) 104.60p 1.36%
FTSE 250 - Fallers
Drax Group (DRX) 725.00p -10.71% Centrica (CNA) 81.90p -8.59% Kainos Group (KNOS) 1,153.00p -6.34% Greencoat UK Wind (UKW) 149.70p -5.91% Aston Martin Lagonda Global Holdings (AML) 638.80p -5.05% Wizz Air Holdings (WIZZ) 3,013.00p -4.11% Baltic Classifieds Group (BCG) 126.40p -3.95% Network International Holdings (NETW) 214.00p -3.95% Currys (CURY) 77.15p -3.80% The Renewables Infrastructure Group Limited (TRIG) 130.00p -3.70%
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.