Blue-Chip Leaves Pearson Behind

Monday, 16th December: The blue-chip index started off the week soaring once again on last week’s momentum including the trade deal between the US and China which is anticipated to have a greater impact on the blue-chip index opposed to the mid-cap index. During the first half of the trading day only four stocks were in negative territory on the FTSE 100 – Associated British Foods, Pearson, Severn Trent and Taylor Wimpey, but after mid-day passed, the only stock left behind in red was Pearson after its troubled performance in 2019 which is anticipated to drag on into 2020.

Fresh economic data released today illustrated that the UK economy is shrinking as the PMI report revealed the worst reading in over three and a half years in December to 48.5, from 49.3 in November, including a particularly noticeable drop amongst factories which shrunk at the fastest rate since 2012 to 45.8 in December, from 49.1 in November.

Although part of the market seems confident enough to continue operating as normal, there is also a part which remains sceptical regarding Brexit. Although it is clearer that Brexit will almost definitely happen under the influence of Boris Johnson after the election, the way in which it will happen and what exactly it will entail remains somewhat of a mystery which could continue to push sterling lower which is the direction it took today. Towards the end of the trading day, sterling was down 0.06% at $1.3331.

The FTSE 100 closed 2.25% higher leaving Pearson at the very bottom which closed almost 1.0% lower, and the FTSE 250 closed 1.92% higher.

Leave a Reply