Share Prices & Company Research

Market News

02 Mar 2021 | 07:36

London pre-open: Stocks seen lower after strong start to month

(Sharecast News) - London stocks were set to fall at the open on Tuesday following solid gains in the previous session. The FTSE 100 was called to open 24 points lower at 6,564.

CMC Markets analyst David Madden said: "Equity markets started off the new month on the front foot yesterday as lower bond yields combined with stimulus hopes from the US boosted sentiment. Last week, stocks saw some selling pressure as increases in government bond yields acted as an excuse for dealers to reduce their equity positions - indices were coming from a relatively high position.

"Worries that we are in for higher inflation were the driving force behind the move higher in yields. "Commodity prices are on the rise as there is a view in the markets that mineral demand will increase in the months ahead as economies should loosen restrictions. Higher inflation seems like a foregone conclusion since we have seen multi year highs in metals and oil registered a 13 month high recently.

"That being said, the Federal Reserve doesn't seem that worried about an increase in inflation or bond yields, while the ECB indicated they would amend their bond buying scheme as a way of keeping yields under control."

In corporate news, private jet servicing company Signature Aviation said underlying annual profits fell by two thirds as the Covid-19 pandemic hit air travel.

The company, which is set to be taken over by a consortium of private equity funds, said underlying pre-tax profit fell 60.8% to $114.2m.

"Our US Business and General Aviation markets have recovered strongly from the low point of 77% down in April 2020. January 2021 flight activity recovered to be 12.5% down year on year, and February was down 17%," it said.

Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 30th April 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.