Shares in Rolls-Royce and BAE Systems today lost momentum as the FTSE 100 index struggled to capitalise on Wall Street’s best week since last November. The S&P 500 index closed higher for the seventh session in a row on Friday, with the leading US benchmark back within 2% of its recent record. This week’s focus is likely to be the Jackson Hole Economic Symposium as traders look for guidance from leading central bankers on the outlook for interest rate cuts.
The annual event in Wyoming takes place from Thursday to Saturday and is set to hear from Federal Reserve chair Jerome Powell and Bank of England governor Andrew Bailey. Stock markets have been in an upbeat mood heading into the meeting, boosted by recent signs that the US economy is running neither too hot nor too cold. The Vix fear index closed last week below 15, down from the closing level of 35.
8 seen during a bout of volatility earlier this month. The calmer conditions were reflected in this morning’s sideways performance of European markets as the FTSE 100 drifted 0.1% or 10.
88 points to 8300.53. The shares of Rolls-Royce and BAE were hit by profit taking as investors locked in the gains seen in previous sessions.
Rolls fell 2% or 10.6p to 490.4p and BAE by 3% or 36.
6p to 1313.4p. On the risers board, Sports Direct owner Frasers Group lifted 2% or 20.
5p to 869p and luxury goods group Burberry cheered 11.2p to 697.8p.
In the commodities sector, Glencore led the pack with a rise of 6.2p to 410.5p while Rio Tinto.