Retailers Suffer As Retail Sales Falls
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Retailers Suffer As Retail Sales Falls

French Supermarkets To Push For Price Cuts From Food Manufacturers

On Friday, the FTSE 100 exhibited further weakness, with London’s major retailers affected by disappointing retail data for July, as reported by the Office for National Statistics. Retail sales volumes fell by 1.2 per cent during the month due to adverse summer weather conditions. Consequently, leading high street companies like JD Sports, Frasers, and M&S concluded the day with lower stock prices.

The FTSE 100 index decreased by 0.65 per cent, or 47.78 points, closing at 7,262.43. European main indexes also experienced declines, influenced by concerns about the Chinese economy and elevated bond yields. Germany’s Dax index was down by 0.65 per cent, and the Cac 40 ended 0.39 per cent lower.

CMC Markets UK’s Chief Market Analyst, Michael Hewson, noted that the FTSE 100’s six-day consecutive decline matches its worst losing streak since October of the previous year, with the index revisiting its March lows. The Dax index similarly had a challenging week, nearing its July lows. Market weakness stemmed from Asia, particularly the Hang Seng index, which entered bear market territory after China’s Evergrande filed for bankruptcy protection in a US court.

In the US, markets responded to the global weakness by opening lower. Concurrently, the pound experienced a slight dip against key currencies due to economists’ concerns about the impact of declining retail sales on UK spending.

On the corporate front, Everyman Media’s shares remained steady at 60p despite revealing lower revenues and earnings in the first half of 2023. RS Group’s shares suffered a notable decline after UBS downgraded the stock, anticipating a larger profit reduction due to market concerns.

The price of oil experienced a slight decline, setting the stage for its first weekly drop after seven weeks of consecutive gains, with Brent crude oil decreasing by 0.32 per cent to USD 84.09.

Among the top risers on the FTSE 100 were British American Tobacco, Tesco, WPP, BAE Systems, and Sage Group. On the other hand, Airtel Africa, RS Group, Antofagasta, Prudential, and JD Sports were among the top fallers.

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