Spreadex Market Update
Fears for the UK high street drag FTSE lower as BHS faces Woolworths-esque administration
Falling by around 20 points and dipping under 6300 in the process, the FTSE bore the brunt of the morning’s bad news, a combination of weak commodity stocks and fears over the state of the UK high street sending the index lower. With BHS failing to sufficiently update its product to match the increasing youth-orientated nature of the high street (ironically led by the Philip Green-owned Topshop), whilst struggling to catch up with the move away from a bricks and mortar shopping experience to a more online-based focus, the company now finds itself filing for a Woolsworths-esque administration.
Whilst British Home Stores is a privately owned company, its collapse continues to paint an unflattering picture of the UK retail landscape (especially hot on the heels of the string of the dismal sales figures seen in the sector since 2016 began), feeding into investors unease this morning. Interestingly, however, its peers weren’t too fussed, the likes of Next and M&S ignoring the FTSE’s drop to tick higher as the day got underway, buoyed by another rival falling by the wayside.
Over in the Eurozone things were just as gloomy, the DAX and CAC slipping by 0.6% and 0.5% respectively. The main focus in the region this morning will be on the German Ifo business climate figure; expecting to creep up to 107.1 (against 106.7 last month) the number could help change the tone of Monday’s trading if the estimates are accurate.
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