London’s blue chips were almost 100 points lower as investors waited nervously for the US non-farm payrolls number.
FTSE 100 dropped 93 to 6,100 ahead of the figures with disappointing exports numbers from Germany adding to the market’s unease.
Consensus forecasts are for the US economy to have created around 220,000 jobs in August, which may or may not be enough to prompt the US Federal Reserve to raise interest rates at its next interest rate meeting ion 16 September.
Connor Campbell at financial firm Spreadex said: “What was always going to be an important release has gained extra prominence in the last month; the Chinese market-mania has combined with intermittently impressive US figures to create an utterly baffling situation for investors in regards to trying to work out the Fed’s stance on a September rate hike.”
Here, company news was dominated by the seeming victory for GVC in the battle for online gaming group Bwin.party (LON:BPTY).
Bwin.Party’s board has decided to switch its recommendation to a £1.1bn offer from Sportingbet owner GVC rather than the previously favoured 888 (LON:888) bid. The offer is worth around 130p per share.
Bwin shares fell 1p to 114p, 888 though rose 2% to 165.5p.
A disappointing retail sales number hit shares in a number of the major high street chains.
August was the worst month for UK retailers since 2008 accountancy firm BDO reported, as poor weather sparked a rush for the sun from British shoppers. Retail sales fell by 4.3% on a year earlier, the sixth monthly fall this year.
High St bellwether Next (LON:NXT) was the worst performer on the FTSE 100, shedding more than 3% to 7,600p.
There were heavy falls also for electronics retailer Dixons Carphone (LON:DC.), down 13p at 418p, after department store John Lewis saw sales in this sector dive last week and fashion giant Burberry (LON:BRBY), which dropped 3% to 1,355p
Airlines, in contrast, are benefiting from the trend of people fleeing the UK weather.
Easyjet (LON:EZJ) raised its profit forecast yesterday and its share rose by slightly today to 1,763p, while British Airways’ owner IAG (LON:IAG) climbed 4p to 569p.
Among the small caps, IS Solutions (LON:ISL) rose 33% to 69.3p. The data analyser has signed two new contracts with financial services firm worth more than £4mln in revenue.
Antibody supplier Bioventix (LON:BVXP) rose 17% to 1,090p as it said its core business remains “robust,” with sales expected to be around £4.2mln for the year.
Coms (LON:COMS) rallied after early falls as it cautioned losses from getting rid of its telecommunications business will mean a substantial deficit in the first half of this year. Shares rose slightly to 0.58p.