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FTSE 100 trims losses as Amazon leads Wall Street lower

Britain’s blue-chip index finished down around 46 points, or 0.65%, at 7,032, off a session peak of 7,078 and a low of 6,996

  • FTSE 100 closes 46 points down
  • Travel stocks, miners and banks lead retreat
  • Amazon leads US stocks lower

5.15pm: FTSE closes day lower

FTSE 100 closed in the red on Friday, while Wall Street also lagged, as the upbeat mood appeared to run out of steam.

Britain’s blue-chip index finished down around 46 points, or 0.65%, at 7,032, off a session peak of 7,078 and a low of 6,996.

Over the week as a  whole, the Footsie added just 0.07%.

“Yet another week of strong earnings releases from the US, yet high expectations appear to be hindering the ability to maintain the ongoing uptrend,” noted Joshua Mahony, the senior market analyst at online trading firm IG.

“Meanwhile, the rise of both inflation and growth in the eurozone has dampened sentiment somewhat given the potential implications for monetary policy.”

Across the pond, the Nasdaq was leading the losers south, down 105 points, or 0.71%, to 14,673. The Dow Jones Industrial Average shed 128 points, or 0.37% at 34,955. The S&P 500 lost over 23 points at 4,395.

4.10pm: FTSE down 40 points

The FTSE 100 is looking like it will finish July below where it started, with the index down 40 points today and 85 points (1.2%) below where it ended last month.

It was a “disappointing” end to the week and the month for market analyst Michael Hewson at CMC.

“Markets in Europe have also slipped back today, at the end of a week that has lacked a clear direction overall.

“We’ve seen moves in both directions, but they’ve lacked any sort of conviction, with the overriding concern being one of concern about whether the second half of the year will be able to match up to some of the decent numbers we’ve seen from various company updates this week.”

READ: Week ahead brings more banks, BP and Greggs, plus focus on Bank of England and US jobs report

While the Footsie has enjoyed a slight boost since Wall Street came online, though the Dow, S&P and Nasdaq are all trading lower.

After falling 7% at the opening bell Amazon has been hit with a €746mln (£636mln) fine for breaking European Union data protection laws by regulators in Luxembourg.

The online retail colossus said it believed the fine to be “without merit”, adding that it would defend itself “vigorously”.

Another big faller across the pond is Pinterest, down 19% to $58.55 after revealing a decline in user numbers as well as downgrading its tjhird-quarter outlook. 

2.42pm: Wall Street slides

The main indices on Wall Street opened in negative territory on Friday as the disappointing Amazon earnings and a rise in inflation dented sentiment.

Shortly after the opening bell, the Dow Jones Industrial Average was down 0.18% at 35,022 while the S&P 500 dropped 0.59% to 4,392 and the Nasdaq fell 0.99% to 14,631.

Amazon itself was a key weight on the Nasdaq in early deals, sliding 7.9% to US$3,314 – its biggest fall in 11 months. 

READ: BANG vs FAANG – BlackBerry, AMC, Nokia and GameStop take on Big Tech in earnings season

Things may not have been helped by new economic data which showed the core personal consumption expenditures (PCE) index jumped 3.5% year-on-year in June, well above the target of 2% set by the Federal Reserve, raising fears that the recent inflationary pressures could continue for longer.

Back in London, the FTSE 100 was also in the red, down 41 points at 7,037 at around 2.40pm.

2.23pm: FTSE 100 still wallowing

Britain’s high street banks are all trading lower now, with NatWest PLC results taking us past halfway through the reporting season and the set to meet next week.

The former RBS had one of the biggest levels of excess capital on its book ahead of this round of earnings, and today released £605mln of money set aside for bad debts, paving the way for a share buyback of up to £750mln and an interim dividend of 3p.

Its shares were in…

Read More: FTSE 100 trims losses as Amazon leads Wall Street lower

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