A host of poor earnings reports have hit UK stocks hard, pushing the FTSE 100 down 100 points in early trading.

  • Bad economic and corporate news sends indices into retreat.

  • FTSE 100 heads back to 6000.

  • Both UK-focused and international firms under pressure.

A double-digit percentage decline in the German economy  and abysmal results from Lloyds have put the cat among the pigeons this morning. Stocks are firmly in the red, with the FTSE 100 taking it on the chin as Lloyds drops 8% and heavy losses in Europe as well as investors fear that more bad news will be on the way. Continuing indications of a rise in virus cases throughout Europe have added to the caution, with markets worrying that Q2 was not the last quarter of significant economic weakness. The FTSE 100, the serial underperformer of the past four months, is now heading back towards 6000, having seen upward momentum stall over the past two months around the 6300 mark. The economic worries have combined with a modest recovery in the dollar to hit commodity prices, putting mining stocks on the back foot as well, leaving London’s main market looking very vulnerable indeed. UK investors will be glad that Shell got its bad news out of the way last month, otherwise today’s numbers would have caused a bigger fall in the stock and put yet more pressure on the beleaguered index.

There was a flurry of UK corporate news this morning, almost all of it bad. Lloyds is paying the price for its dominant position in the UK market, with increasing signs of weakness in the second half, but even international firms like Compass cannot afford to be too optimistic about the rest of the year. Taken together, this is a very gloomy set of updates that should give investors pause before putting more money to work in equities, at least for the time being.

Ahead of the open, we expect the Dow to start at 26,270, down 269 points from Wednesday’s close.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

AUD/USD weaker ahead of RBA’s monetary policy decision

The Aussie is weak, despite receding dollar’s demand and the robust performance of US indexes. Coronavirus developments hit the commodity-linked currency ahead of the RBA.


Gold: This just might be as good as it gets for gold

The price of gold is trading at $1,975 within a range of between $1,960.54 and $1,986.76 at the time of writing, virtually flat on the day in consolidation having eeked out a fresh all-time high.

Gold News

USD/JPY struggling to retain the 106.00 level

The USD/JPY pair traded as high as 106.46 on Monday but struggles to retain gains above the 106.00 level amid lack of dollar’s demand.


Ethereum on its way to regaining $400 while BNB hit a new high at $22.5

BTC/USD is more stable than other coins right now but has been able to recover from its crash towards $10,500. It is currently trading at $11,369 and faces very little resistance until $14,000.

Read more

WTI drops below $40 on demand worries, OPEC+ output increase

Crude oil prices posted losses last week and seem to be struggling to shake off the bearish pressure on Monday. As of writing, the barrel of West Texas Intermediate (WTI) was trading at $39.85, losing 1.5% on a daily basis.

Oil News

Forex Majors