By Patrick Munnelly, Market Strategist, Tickmill
The FTSE 100 saw a decline at the open on Thursday, primarily attributed to the decrease in defence-related stocks, and driven by a slip in BAE Systems’ LON:BA. shares, down 4.5% on the session following news this morning that it will acquire Ball Aerospace in an all-cash transaction valued at $5.55bn. Additionally, global market sentiment has shifted toward caution following what is seen as hawkish signals in the minutes from the U.S. Federal Reserve’s July meeting.
The blue-chip index registered a decline of 0.63% by the close.
Hawkish signals from the Fed
The minutes from the Fed’s July meeting indicated a division among policymakers regarding the necessity for further interest rate hikes. “Some participants” expressed concerns about the potential negative impact on the economy if rates were increased excessively, while “most” policymakers continued to prioritise combating inflation. Moreover, there was a 0.9% decrease observed in the stocks of precious metal miners. This decline was influenced by gold prices reaching a five-month low, primarily due to a stronger dollar and an uptick in bond yields.
FTSE 100 biggest movers
Entain LON:ENT sits second from bottom of the index today, down 4.8% despite Barclays establishing a target price of 1,450 for the company. This target price is in comparison to Entain’s opening share price on Thursday (17th), which stood at 1,223. The target price suggests a potential increase of 18.6%.
Throughout the last year, the company’s stock has traded within a range of 1,045 as its lowest point and 1,597 as its highest point. On a daily basis, an average of 1,488,263 shares are exchanged. The company’s current market capitalization, as of the time of writing, is £7,518,417,060. These figures offer insights into the stock’s recent performance and the market’s perception of the company’s value.
ABRDN LON:ABDN is also under pressure and vying for the bottom spot, shedding 4.63%. The former flagship fund is set to undergo a merger into the Diversified Income strategy. As part of this transition, the Diversified Income strategy has been rebranded as “Abrdn Diversified Income & Growth,” coinciding with the name of one of Abrdn’s trusts. This move represents a strategic realignment and integration of investment approaches within the organisation.
On the positive side of the ledger Admiral LON:ADM sits near the top of the table, adding another 0.7% as investors continue to bid up shares after yesterday’s positive earnings announcement and outlook for the year ahead.
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