Marks and Spencer, BP shore up languid start to New Year for FTSE 100

Mark Crouch, analyst at investment platform eToro, says: “2023 turned out to be a bumper year for stocks globally when few were expecting it, but UK gains were largely eclipsed by what we saw elsewhere. The US had a fantastic rally last year, as share prices confounded expectations that rising interest rates might spark recession in the major economies.

“UK share prices were lackluster in comparison, though, with the FTSE 100 index adding around 4% in value. When you put that alongside the S&P 500 US benchmark, which grew more than 20% last year, you see just how stark the underperformance was.

“We’re seeing more of that sense of fragility on the first trading day of the year, and it’s more of a case of a New Year hangover than festive fizz for many stocks in the FTSE 100, with insurer Prudential among the worst laggers.

“It hasn’t all been bad news though, with Marks and Spencer and BP among the better performers. Geopolitical risks continue to support the price of crude oil, and that’s given BP some buoyancy, while M&S has benefitted today from a rating upgrade, which follows on from early word from Chief Executive Stuart Machin of positive customer response to the company’s Christmas ranges.”