London party

London stocks slide on growth jitters; JD Sports, retailers weigh in

A man takes shelter under an umbrella as he walks past the London Stock Exchange in London, Britain August 24, 2015. REUTERS/Suzanne Plunkett/File Photo

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  • FTSE 100 down 0.1%, FTSE 250 down 0.5%
  • Boris Johnson scores victory in party’s confidence vote
  • Ted Baker’s favorite bidder walks away, stocks plummet

June 7 (Reuters) – British shares fell on Tuesday as expectations of further tightening from major central banks weighed, while JD Sports fell after the national antitrust watchdog found the retailer involved in the fixing prices.

The blue-chip FTSE 100 (.FTSE) fell 0.1%, with banks (.FTNMX301010) leading the losses, while the mid-cap index (.FTMC) fell 0.5%.

British Prime Minister Boris Johnson survived a confidence vote on Monday, but a major rebellion within his Conservative party over the ‘partygate’ scandal has dealt a blow to his authority, raising questions about his handling of economic challenges British. Read more

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“Johnson has effectively lost his authority and the UK is facing a period of political drift…Markets don’t like uncertainty and that is reflected in the UK this morning,” said Stuart Cole, macro – Chief Economist at Equiti Capital.

“The market is now faced with the prospect that handling the cost of living crisis will play a secondary role in Johnson’s attempts to stay in power and that only sees growth fears weigh again.”

UK shoppers facing soaring inflation cut their spending the most in May since the country was locked down by COVID-19 in early 2021, a survey shows. Markets are now awaiting data from the S&P Global Index /CIPS Purchasing Managers’ Index for May for indices of business activity. Read more

Investors also focused on rate decisions from the Bank of England and the US Federal Reserve next week, and a European Central Bank meeting on Thursday.

Money markets are discounting a path of aggressive monetary tightening from the BoE despite fears of an economic slowdown, as they anticipate more than 140 basis points of rate hikes by the end of the year. find out more RIPR

Ted Baker (TED.L) plunged 18.4% after the fashion chain said its preferred bidder would not make a takeover bid. Read more

Britain’s biggest sportswear retailer, JD Sports Fashion (JD.L), fell 3.9% after Britain’s competition watchdog provisionally found that JD Sports and Elite Sports, along with the Rangers Football Club, had fixed retail prices for certain Rangers branded clothing products.

Retailers (.FTNMX404010) were among the main decliners in the FTSE 100, down 2.2%, while oil and gas stocks (.FTNMX601010) rose 1.0% on higher crude prices .

($1 = 0.8006 pounds)

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Reporting by Anisha Sircar and Amal S in Bengaluru; Editing by Rashmi Aich, Shailesh Kuber and Tomasz Janowski

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