National Grid and SSE buck FTSE falls as investors seek havens

Discussion in 'Market News' started by Lily, Sep 26, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
    Likes Received:
    Utility stocks in demand as leading index drops on cocktail of concerns

    As leading shares continue to head lower - on track for their worst day for two weeks - stocks with defensive qualities are in demand.

    In particular this means utility shares are bucking the downward trend, with National Grid up 6.5p at £10.81, SSE adding 5p to £15.39 and Severn Trent 2p higher at £24.74.

    It’s one of those mornings where investors have woken up with the fear. The fear of a strong Trump performance in the US presidential debate this evening, the fear of more ineptitude from OPEC at their meeting in Algiers later in the weak, the fears of a ‘hard’ Brexit, the fears of further collapse from Deutsche Bank, which has fallen around 6% since the day began...

    This left the FTSE with a 1% decline (admittedly a tad smaller than earlier in the session), with 1.4-1.5% falls for the DAX and CAC respectively. The tremulous tone of trading meant that the fact the German Ifo business climate reading hit a 2 year high of 109.5 fell on deaf ears, investors choosing to focus purely on the negative side of things instead.

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