Tuesday, 3rd April: After having a long weekend off, the FTSE started the day struggling, partially due to the deepening sell-off of tech stocks across the US and Asia, as well as the pair’s further trade tensions. The FTSE 100 opened around 0.7% lower, and the biggest fallers in early trading were GKN and Scottish Mortgage Investment Trust, both down more than 3.0% in the morning.
Amongst the tech world, Apple has caused a fair amount of chaos. The groups’ increasing approach to becoming less dependent on its suppliers has left those involved in a rut. In particular, Europe’s Dialog Semiconductor has had to wave goodbye to more than 60% of its share price in the past year after Apple announced they would be distancing themselves from them.
Apple’s suppliers aren’t the only ones shaking up the tech world though, the dramatic sell-off is also worrying Spotify, who are due to debut on the stock market today, but don’t seem optimistic due to the current status of the market. However, an encouraging reference price of £94.0 per share this morning from NYSE paints a different picture, of a massive £24bn market cap on the open of their first day, and some have even speculated that the Spotify debut could be the second largest internet float after Facebook in 2012.
For the majority of the morning, only around 10 stocks remained in positive territory on the blue-chip index, including the likes of Sky, Rangold Resources, Imperial Brands, British American Tobacco, Lloyds Banking Group and a few others, some of which switched across the borderline of green and red for the entirety of the day.
Towards the end of the day, more stocks were in positive territory, but the majority still remained in red. The index closed around 0.37% lower at 7030, placing them back to the same level of trading as in December 2016.