FTSE 100 extends losing streak to six days as Mideast peace hopes fade
Market Overview and Key Developments
April 27 (Reuters) - London's FTSE 100 declined on Monday, dragged by losses in the energy and consumer sectors, as stalled Iran-U.S. peace talks dampened investor sentiment ahead of crucial central bank meetings this week.
The blue-chip FTSE 100 index finished 0.6% lower at 10,321.09 points, its sixth consecutive session of losses- its longest losing streak in more than a year. Meanwhile, the midcap FTSE 250 closed flat.
Geopolitical Tensions and Market Sentiment
• Prospects for peace in the Middle East dimmed over the weekend. U.S. President Donald Trump called off a trip by his envoys to Pakistan and later said Iran should phone when it wanted a deal.
Sector Performance
Energy Sector Losses
• Energy sector losses weighed the most on the blue-chip index. Shell dipped 1.7% after the oil and gas major agreed to buy Canadian energy company ARC Resources in a $16.4 billion deal.
Consumer Sector Weakness
Supermarkets
• Consumer-related stocks also faced pressure, with supermarket chain Sainsbury falling 3.3% after Goldman Sachs' double downgrade on its stock.
Retail and Clothing
• Marks and Spencer dropped 4.7%. JPMorgan reported Worldpanel data showing UK clothing market slowdown, with M&S sales dropping 0.5% year-on-year versus 3.2% growth in the previous period.
Precious Metals and Commodities
• Precious metal miners dropped 2.8% as gold prices edged lower. [GOL/]
• Global oil benchmark Brent crude futures hit two- week high at $107.49 a barrel. This fed inflation fears and extinguished expectations for interest-rate reductions across economies this year.
Central Bank Meetings and Economic Outlook
• All eyes are now on the Bank of England, widely expected to keep interest rates steady this week, while attempting to assess mounting economic challenges stemming from the war in Iran.
• Market participants will also monitor forthcoming policy decisions from the U.S. Federal Reserve and European Central Bank for further direction.
Other Market Movers
• On Monday, UK's aerospace and defense stocks edged 0.2% higher.
Retail Sector and Consumer Sentiment
• A survey from the Confederation of British Industry showed the country's retailers reported the broadest year-on-year decline in sales in more than 40 years as the Iran war raised households' inflation fears.
(Reporting by Ragini Mathur in Bengaluru; Editing by Shailesh Kuber and David Gregorio)
