By Patrick Munnelly, Market Strategist, Tickmill
The FTSE ended the day down 0.43% at 7423.46.
FTSE limps into the close
On Wednesday, the UK’s FTSE 100 experienced a decline due to insurance companies Aviva LON:AV. and Prudential LON:PRU being downgraded by Deutsche Bank. Additionally, the strengthening of the pound added to the selling pressure. The blue-chip FTSE 100 index dropped by 0.43%. The life insurance industry experienced a decline of 1.1% due to Prudential’s decrease of 3.5% following Deutsche Bank’s reduction in its price target for the company. Additionally, Aviva saw a drop of 2.1% after the bank downgraded its stock.
FTSE 100 biggest movers
On the positive side of the ledger JD Sports LON:JD. is experiencing a boost in their shares after Foot Locker, a US footwear retailer, provided a positive outlook. Foot Locker is forecasting higher annual profits than expected, as well as a smaller decline in revenue, thanks to heavy discounts that have helped boost sales during the holiday season.
This news has caused JD Sports’ shares to increase by 5.7%. Overall, JD Sports’ shares have increased by approximately 26% this year. JD Sports were almost pipped to the top spot on the blue chip index by Fresnillo LON:FRES who racked up another 5%+ gain as metal prices continued to surge.
On the negative side of the ledger Entain LON:ENT continued to be shunned by investors in follow through selling, shedding a further 4.1% after yesterday’s downgrade by Goldman, Goldman Sachs has reduced its target price from 1,450p to 820p and downgraded its rating from ‘Buy’ to ‘Sell’. The reason for this decision is due to disappointing online growth, BetMGM joint venture losing market share in the US, and a larger than anticipated settlement in Turkey.
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