By Patrick Munnelly, Market Strategist, Tickmill
London’s FTSE 100 index, which is heavily reliant on exports, started the day with a decline on Friday.
The pressure on the index was due to the strength of the pound, which gained ground following surprising economic data revealing higher-than-anticipated growth for the UK in the second quarter. The unexpected growth in the second quarter was a result of a strong performance in June. The growth was measured at 0.2%, which contrasted with the flat reading that economists had predicted in a Reuters poll. As a response to the data, the FTSE 100 index experienced a 0.6% drop. Simultaneously, the British pound halted its three-day losing streak.
Additionally, energy stocks experienced a decrease of 1.1% due to a decline in crude oil prices.
In other news, the UK’s competition regulator provided preliminary clearance for UnitedHealth Group’s acquisition of healthcare technology company EMIS LON:EMIS, valued at £1.24 billion ($1.58 billion). Following this announcement, shares of EMIS surged by nearly 25%, reaching a ten-month high.
FTSE 100 biggest movers
On the positive side of the ledger, shares of the British insurer Beazley Plc LON:BEZ saw an increase of 1.13%, which positioned the company as the top percentage gainer on the FTSE 100 index. The company has confirmed that its guidance regarding growth and the combined ratio, along with its positive outlook for the business, will remain unchanged. In addition to this announcement, Beazley revealed that its Chief Financial Officer (CFO), Sally Lake, is set to step down from her position in 2024. Despite these developments, the company’s shares have experienced a year-to-date decrease of approximately 22% as of the last market close.
On the negative side of the ledger, British gambling company Entain LON:ENT which on Thursday disclosed that it had allocated £585 million (approximately $744.5 million) for a potential settlement with British authorities, saw further investor concern, leaving the firm bottom of the index down alsmost 5% by the close of the session.
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