Closing post
After hitting record highs this week, the FTSE 100 index is ending on a slightly weak note.
The blue-chip share index is down 10 points in late trading at 8002 points, down 0.1%.
NatWest continues to be the biggest faller, down 6%, with Lloyds Banking Group down 3.8%.
Michael Hewson of CMC Markets says:
NatWest Group has seen an underwhelming reaction to a strong set of full year results, an increase in the dividend and a share buyback.
Given the share price reaction today, it seems there’s just no pleasing some people even accounting for the disappointment over its guidance, which appears to be being blamed for today’s weakness.
Here are today’s main stories:
The US ecconomy continued to weaken last month, according to the Leading Economic Index produced by the Conference Board.
The LEI for the US fell by 0.3% in January, and has now dropped by 3.6% over the last six months.
“The US LEI remained on a downward trajectory, but its rate of decline moderated slightly in January,” said Ataman Ozyildirim, senior director for economics at The Conference Board.
“Among the leading indicators, deteriorating manufacturing new orders, consumers’ expectations of business conditions, and credit conditions more than offset strengths in labor markets and stock prices to drive the index lower in the month. The contribution of the yield spread component of the LEI also turned negative in the last two months, which is often a signal of recession to come.
While the LEI continues to signal recession in the near term, indicators related to the labor market—including employment and personal income—remain robust so far. Nonetheless, The Conference Board still expects high inflation, rising interest rates, and contracting consumer spending to tip the US economy into recession in 2023.”
