FTSE 100 closes flat again as virus worries rise, Asian stocks open mixed while Sensex shows muted gains

Banking stocks surged 2 per cent but gave up gains before closing

London’s FTSE 100 closes flat for the second straight session (PA Wire)

London’s FTSE 100 closed flat on Tuesday for the second day as worries over rising Covid cases increased and banking stocks declined after trading higher for most of the session.

The blue chip index closed 0.7 points down at 7,124, with financial services company Natwest Group being the top loser, while energy major BP also dragged the index. Travel stocks dropped 1 per cent.

Banking stocks advanced by 2 per cent before losing gains as the Bank of England scrapped pandemic curbs on shareholder dividend payouts in the commercial banking sector, following in the footsteps of the US Federal Reserve.

The domestically focused FTSE 250 also ended with muted gains at just 0.1 per cent higher, with retailer Howden Joinery Group hitting record highs after an upbeat earnings updates.

Meanwhile, in the rest of the Europe, France’s CAC lost 0.4 per cent while Germany’s DAX was also flat.

US stocks also ended lower on Tuesday with the biggest jump in inflation in 13 years, however strong second quarter results from leading banks helped cap losses. At the close in NYSE, the Dow Jones Industrial Average declined 0.3 per cent, while the S&P 500 index lost 0.3 per cent as well, and the Nasdaq Composite index fell 0.4 per cent.

On Wednesday, Asian stocks opened mixed tracking global peers. Japan’s Nikkei is 0.2 per cent down at noon, while Hong Kong’s Hang Seng is 0.6 per cent down. The Shanghai Composite took a 0.8 per cent fall by mid session.

Indian indices also had a lower start mirroring global sentiments as Sensex drops 73 points to 52,696 and Nity went below 15,800. All eyes are on Indian food delivery company Zomato’s IPO, India’s biggest this year, set to open on Wednesday.