FTSE 100 dips but set for first weekly gain in four

Credit: REUTERS/Suzanne Plunkett

By Shashank Nayar

July 17 (Reuters) - The FTSE 100 dipped on Friday, but was still set for its first weekly gain in four as hopes of more stimulus and a COVID-19 vaccine supported risk sentiment amid a surge in global infections.

The blue-chip FTSE 100 .FTSE was down 0.1% and the mid-cap FTMC .FTMC lost 0.6%, with banks .FTNMX8350, energy .FTNMX0530 and insurance .FTNMX8570 stocks falling more than 1%.

After a stock market rally powered by historic stimulus and improving macroeconomic indicators, analysts said investors were looking to quarterly earnings updates from marquee companies to gauge the pace of the recovery in the latter half of the year.

"Markets have so far been rising on hope but investors right now are more cautious and would wait for progress in corporate numbers before they enter markets again," said Andrea Cicione, strategist at TS Lombard.

The export-laden FTSE 100 has bounced 27% from its March lows, but is still about 17% down on the year. Focus is also returning to Brexit negotiations with the UK's transition period due to expire at the end of the year.

In Europe, all eyes are on Brussels where European Union leaders are expected to hammer out details of a 750-billion-euro recovery fund. .EU

In thin company news, engineering group Renishaw Plc RSW.L jumped 5.1% to its highest in more than a year after raising its annual revenue forecast.

British Airways, the world's largest operator of Boeing 747s, said it would retire its entire jumbo jet fleet with immediate effect after the novel coronavirus pandemic sent air travel into freefall.

Shares of BA's parent firm IAG ICAG.L fell 3.3% amid a broader sell-off in travel-related stocks .FTNMX5750.

(Reporting by Shashank Nayar in Bengaluru; Editing by Subhranshu Sahu and Shailesh Kuber)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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