Wednesday, 12th July: FTSE recovered back to its Monday opening, up 0.67% at 7378 in the morning. Burberry was leading the way in the early hours, up 3.5% after a trading update which revealed that sales were lifted largely by China, although they experienced a slight decline in America as the dollar strengthened, which encouraged American consumers to carry out more luxury shopping overseas. The growth in China has been pinned down to the social media drive which has more than tripled how many consumers have been drawn in by marketing tools which appear on WeChat, a popular Chinese messaging app.
Economic data released today celebrated the lowest unemployment rate since 1975 of 4.5% between March and May. However, the Office for National Statistics revealed that British workers’ pay had slipped 0.7% in the three months to May when compared to the same period in 2016. The data so far has contributed towards policymakers being less likely to raise interest rates any time soon.
Frances foreign minister is set to be the next of the major Western States, which so far has included Germany, Britain and the US, to make an effort to resolve the conflict brewing amongst the Gulf countries. France has close ties with both contenders, and plans to stress the negative impact the crisis is having on diplomatic, economic, political and security fronts.
Carillion continues to sit uncomfortably at the bottom end of the FTSE 250, and are preparing for the worst if they struggle to stabilise the plummeting share price, which today reached a new low of 57.25p. One possible helping hand could come in the form of a big share sale, another option could be a debt restructuring, as suggested by analysts. It’s looking like a worst nightmare coming to reality at the moment for the support services expert, which will more than likely continue to suffer in the coming weeks.
At around 2:00pm, the FTSE was up a surprising 1.2%, which was maintained until the end of the day to 7418.8. Sterling also continued to gain throughout the day, as GBP/USD was up 0.23% at $1.2888, and GBP/EUR was up higher than yesterday 0.74% at €1.129.