The new year rally in global stock markets appears to have lost momentum, with investors turning more cautious amid fresh corporate and macroeconomic concerns.
European markets traded lower on Wednesday morning, extending losses seen earlier across Asia-Pacific stock markets, where several major indices closed in negative territory.
FTSE 100 Dips Below 10,000 Before Recovering
In London, the FTSE 100 briefly slipped back below the 10,000-point threshold in early trading before regaining some ground. The benchmark index later recovered to around 10,021 points, down 26 points, or 0.26%, on the day.
The pullback highlights growing uncertainty among investors after a strong start to the year for global equities.
AB Foods and Tesco Drag on UK Stocks
Associated British Foods was the biggest faller on the FTSE 100, with shares plunging 11.5% following a profit warning that rattled the market.
Supermarket giant Tesco was also among the laggards, sliding 5.6%, adding further downward pressure to the index.
The weakness in heavyweight consumer stocks offset gains elsewhere, leaving the FTSE 100 struggling to hold early support as trading continued.
Defence Sector Outperforms UK Stock Market
The rally extended across the wider defence sector, lifting stocks on both of the UK’s main equity indices. On the FTSE 250, Chemring led gains, rising as much as 4.2%. The company supplies countermeasures used on Typhoon and F-35 fighter jets, leaving it well positioned to benefit from increased defence procurement.
