FTSE 100 drop accelerates after China’s tech crackdown, but Croda International PLC reverses trend – .

FTSE 100 drop accelerates after China’s tech crackdown, but Croda International PLC reverses trend – .

9:16 am: Asian stocks suffer late declines

Leading stocks lost more ground, with the FTSE 100 now down 1.15% or 80.93 points to 6,944.5.

The mid-cap FTSE 250 index is also on the slippery slope, losing 0.88% or 201.74 points to 22,731.45.

The further declines follow a sharp drop in Asian markets at the end of trade, with the Shanghai Composite Index closing down 2.5% and the Hong Kong Hang Seng falling around 5%.

China’s continued crackdown on the tech sector is driving the crisis.

There are a few bright spots, notably the specialty chemicals group Croda International PLC.

Its shares jumped 4.78% or 374p to 8200p after saying full-year earnings are now expected to be well above expectations.

This follows a 39% increase in half-year revenue and a 42% increase in operating profits, thanks to its supply contract from vaccine maker Pfizer.

UBS said: “Stocks outperformed early in trading, reflecting the implied double-digit upgrade of consensus estimates for 2021.”

8:38 am: Chinese crackdown hits UK market

The FTSE 100 followed Asia lower as the shockwaves of China’s tech crackdown hit the Square Mile.

Scottish Mortgage Trust (LON: SMT), one of Britain’s biggest investors in innovative giants such as Tencent and Alibaba, was caught in the aftermath of the onslaught on Beijing as its shares fell 2%.

Market watchers expect it to be a bumpy ride until the Federal Reserve’s after-hours interest rate call on Wednesday, which could provide some indication of the potential decline in monetary support .

None of the above had much bearing on that of Reckitt Benckiser (LON: RB.), Whose injuries were purely self-inflicted. Shares of the consumer products giant fell 10% after it said it was hit hard by rising commodity prices.

“In terms of the immediate outlook, the company also anticipates a tough third quarter compared to tough comparisons, with some improvement in the last quarter,” said Richard Hunter, Head of Markets at Interactive Investor.

Specialty chemicals group Croda (LON: CRDA) grew rapidly 2.2% after annual profits beat expectations.

6:50 a.m .: Departure of the expected rear foot

The FTSE 100 is set to drop further on Tuesday, but could be rebooted later as the earnings season starts to pick up.

Spread betters rocked the main benchmark for London equities to fall 12.5 points, after starting the week when it had just finished in the red at 7,025.43.

() and Reckitt Benckiser PLC are among the main reporters expected today, although the mid-cap index is where the most optimism lies, having almost returned to all-time highs above 23,000 yesterday and with () and the newcomer () results exposed shortly.

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Overnight, US stocks were in a cautiously bullish mode as big tech earnings began to show, although good results from () came after the closing bell, including net profit exceeding $ 1 billion. for the first time and earnings per share tripling.

The S&P 500 and Dow Jones both rose 0.2%, while the Nasdaq Composite barely managed to finish in positive territory as investors await earnings reports from big-guns Apple Inc, Microsoft Corp and () this evening.

“There is no doubt that the uncertainty surrounding the Fed’s next move, as well as the disruption caused by the increase in coronavirus cases and events in Asia, is forcing investors to cash in their profits before they go on vacation this. summer, ”market analyst Naeem Aslam told AvaTrade.

“However, investors shouldn’t be overly concerned as the Fed is expected to maintain its accommodative stance over the next few months, and traders should be watching the performance of tech stocks this week closely in light of Tesla’s strong earnings yesterday. “

Gold fell back below the $ 1,800.00 per ounce mark.

As Oanda analyst Jeffrey Halley said: “Residual fears that the FOMC mentions the tapering world are mainly responsible for the selling pressure, and gold is unlikely to recover significantly before. the FOMC decision and statement. “

6h50 : Early Markets – Asie / Australie

Stocks in the Asia-Pacific region were mixed on Tuesday as regulatory fears surrounding China’s tech and private education sector hit stocks in the region.

China’s Shanghai Composite fell 0.40%, Hong Kong’s Hang Seng index fell 2.05%

In Japan, the Nikkei 225 rose 0.35% while South Korea’s Kospi rose 0.24%.

Australian stocks advanced, with the S & P / ASX 200 trading up 0.41%.


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