LONDON MARKETS: FTSE 100 Slides To 6-week Low After Fed Hints At Rate Hike
May 19 2016 - 4:25AM
Dow Jones News
By Sara Sjolin, MarketWatch
Thomas Cook slumps 18% after downbeat outlook, EgyptAir
crash
U.K. stocks moved sharply lower on Thursday, after the U.S.
Federal Reserve signaled an interest-rate increase in June is still
on the table if the economy continues to improve.
A missing EgyptAir plane also hurt sentiment, dragging shares in
travel operators and airlines lower.
The FTSE 100 index slid 1.2% to 6,094.91, setting it on track
for the lowest close since April 5.
Mining companies topped the list of decliners, as a rising
dollar
(http://www.marketwatch.com/story/dollar-maintains-gains-after-hawkish-fed-minutes-2016-05-19)
slammed metals prices lower. Shares of Anglo American PLC (AAL.LN)
dropped 5.7%, Fresnillo PLC (FRES.LN) lost 5.2%, and BHP Billiton
PLC (BLT.LN) (BHP.AU) (BHP.AU) fell 4.6%.
The stronger dollar came after minutes from the U.S. Federal
Open Market Committee's April meeting suggested policy makers are
seriously considering a rate hike next month
(http://www.marketwatch.com/story/most-on-fed-ready-to-hike-rates-in-june-if-economic-data-strong-minutes-show-2016-05-18).
Ahead of the release of the minutes, futures prices had indicated a
June rate hike was unlikely. But a 34% probability is now priced
in, according to the CME Group FedWatch tool.
Shares in travel operators and airlines were falling after an
EgyptAir plane from Paris to Cairo went missing over the
Mediterranean Sea with 66 people aboard. Unconfirmed media reports
said the plane had crashed
(http://www.marketwatch.com/story/egyptair-flight-has-crashed-unconfirmed-reports-say-2016-05-19).
TUI AG erased 3.7%, International Consolidated Airlines Group SA
(IAG.LN) (IAG.LN) dropped 1.7%, and EasyJet PLC (EZJ.LN) gave up
2.1%.
Outside the FTSE 100 index, Thomas Cook Group PLC (TCG.LN)
tumbled 18%, also driven lower by a downbeat outlook for the
full-year
(http://www.marketwatch.com/story/thomas-cook-sees-earnings-hit-from-turkey-demand-2016-05-19).
Among few stocks trading in positive territory, 3i Group PLC
(III.LN) rose 0.8% after the investment manager said assets under
management rose 3.9%
(http://www.marketwatch.com/story/3is-assets-under-management-rise-39-for-year-2016-05-19)
during the fiscal year to end-March.
On the data front, a reading on U.K. retail sales in April is
scheduled for release at 9.30 a.m. London time. Expectations are
for a 0.5% rise, according to HSBC.
(END) Dow Jones Newswires
May 19, 2016 04:10 ET (08:10 GMT)
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