MARKET REPORT: Bruised FTSE 250 suffers worst week for 18 months
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Crumbling confidence in the economy consigned the FTSE 250 to its worst week in more than a year. With about 40 per cent of its sales made at home, the mid-cap index is vulnerable to the weakening pound and deepening concern about the UK's growth prospects and fiscal credibility.
A decline yesterday of 1.4 per cent, or 271.2 points, to 19733.94 left the FTSE 250 at its lowest since April, down 4.2 per cent over the week, its sharpest loss since June 2023. Simon French, chief economist at investment bank Panmure Liberum, said: 'It's a damning verdict on October's Budget, which failed to sell the UK as a destination for investment and growth.'.
Earlier this week, data from global funds network Calastone showed investors pulled £9.6billion from UK-focused equity funds in 2024 in its worst year on record. Conversely, the pound's woes limited loss on the FTSE 100, which derives about four-fifths of its earnings overseas.
In spite of a dip of 0.9 per cent, or 71.2 points, to 8248.49 yesterday, London's leading index stood 0.3 per cent higher over the past five days. Downward trend: The FTSE 250 was down 4.2 per cent over the week, its sharpest loss since June 2023. UK markets remained in thrall to Wall Street, where a closely watched report showed the US economy added 256,000 jobs in December, far more than expected.
