FTSE 100 Flat as Economic Data and Middle East Tensions Weigh on Markets
Market Overview and Key Drivers
Aug 21 (Reuters) - The FTSE 100 was set to end a bumpy week on a subdued note, as investors weighed mixed economic data on Friday against a backdrop of prolonged Middle East tensions that have raised inflation fears.
The blue-chip FTSE 100 was flat at 10,747.56 points by 1006 GMT, while the midcap FTSE 250 climbed 0.4% to 24,596.70 points. Both the indexes were on course to end the week slightly lower.
Global Economic Influences
U.S. Treasury Actions and Bond Market Impact
• U.S. Treasury Secretary Scott Bessent said on Thursday he may further increase the government's repurchases of Treasuries, attempting to jawbone a government debt market that was beginning to balk after the previous day's surprise plan to double buybacks.
Global Stock and Bond Market Trends
• Global stocks were set for their biggest weekly fall since mid-July, as strain in global bond markets showed little sign of abating.
Sector Performance
Metals and Mining
Precious and Industrial Metals
• Precious and industrial metal miners rose as gold and copper prices edged higher against a dollar weakened by the U.S. Treasury's bond buyback move. Antofagasta and Endeavour Mining rose 6.4% and 4%, respectively, leading gains in the FTSE 100. [MET/L] [GOL/]
Retail and Services
Retail Sales Trends
• British retail sales fell back as expected in July after a surge in June when hot weather boosted demand for fans and air conditioners, while supermarkets offered promotions alongside the men's soccer World Cup, official figures showed.
Services Sector Resilience
• Separately, Britain's services sector, the engine of its economy, perked up unexpectedly this month, according to a survey, that added to signs of resilience despite the conflict in the Middle East.
Monetary Policy and Company News
Bank of England Outlook
• The Bank of England is widely expected to hold interest rates next month but traders are pricing in at least one 25-basis-point rate hike by the end of 2026.
Notable Movers
JD Sports
• JD Sports rebounded 6.6%, recovering from a drop of more than 14% on Thursday after the sportswear and fashion retailer cut its profit outlook.
Hunting
• Energy services firm Hunting sank 13.4% as it lowered its annual core profit forecast after delays to a major Kuwait Oil Company tender process.
(Reporting by Anand Gopal and Sruthi Shankar in Bengaluru; Editing by Vijay Kishore)
