Key facts
- Global stock markets have lost momentum amid corporate and macroeconomic concerns.
- The FTSE 100 index was down 0.26% at around 10,021 points.
- Associated British Foods shares fell 11.5% after a profit warning.
- Tesco shares declined 5.6%.
- Chemring shares rose 4.2% on the FTSE 250.
- Federal Reserve Chair Jerome Powell warned that current equity valuations may be stretched.
Global stock markets have seen their new year rally lose momentum as investors adopt a more cautious stance due to fresh corporate and macroeconomic concerns. European markets traded lower on Wednesday morning, extending losses seen earlier in Asia-Pacific markets.
In London, the FTSE 100 index briefly dipped below the 10,000-point threshold in early trading before recovering to around 10,021 points, down 0.26% on the day. This pullback reflects growing uncertainty after a strong start to the year for global equities.
Associated British Foods was the largest decliner on the FTSE 100, with its shares falling 11.5% following a profit warning. Supermarket giant Tesco also contributed to the downward pressure, sliding 5.6%. These declines in heavyweight consumer stocks offset gains elsewhere.
Conversely, the defense sector saw a rally, with stocks across the UK’s main equity indices rising. Chemring, a supplier of countermeasures for fighter jets, led gains on the FTSE 250, increasing by as much as 4.2%. Federal Reserve Chair Jerome Powell's remarks that current equity valuations may be stretched also contributed to investor caution.