FTSE 100 Dips Despite Strong M&G Results as Profit-Taking Hits Stocks

The fall in the London market came despite a well-received set of numbers from insurer M&G (LON:MNG), which exceeded estimates for both its solvency ratio as well as adjusted operating pre-tax profit. The shares rose by over 4% and interest in the sector will be echoed tomorrow as the market reacts to overnight annual results from the group’s former bedfellow Prudential (LON:PRU).

However, for the most part, there was a broad markdown of well-established names with some investors potentially taking profits on some of the best-performing shares of late, such as Barclays (LON:BARC) and International Consolidated Airlines Group S.A. (LON:ICAG), whose shares have risen by 71% and 80% respectively over the last year. Despite the dip, the FTSE 100 remains ahead by 6% so far this year, although the FTSE 250 is still struggling to retain its earlier strong performance, with the latest decline leaving the index 2.7% lower.

US Market Recovery Remains Short-Lived 

The US rally proved to be short-lived, with mega cap growth stocks in the eye of the storm again as investors took more money off the tech table.

After two days of gains after a painful week, the main indices succumbed, pushing the benchmark S&P 500 towards correction territory for what would be the second time in a week.

Meanwhile, the Nasdaq remains firmly in correction mode, with another markdown piling more pressure on Tesla (NASDAQ:TSLA) shares. Another 5% decline leaves the stock down by 41% in the year to date, suffering from the double whammy of cooling sentiment towards its CEO and other competitors beginning to eat its lunch.

Elsewhere, Nvidia (NASDAQ:NVDA) shares fell by almost 3.5% and are now 16.5% down so far this year, as the start of its GTC event failed to inspire confidence, even as the company announced a partnership with General Motors (NYSE:GM) for self-driving cars and declared that the AI space is at an inflection point. The shock of the DeepSeek experience is still fresh in the mind, leading to question marks over the group’s expensive chips compared to some competitors.

The weakness spread across each of the main indices, indicating the current skittishness of investors. The declines came despite some economic data that might otherwise have been well-received, with the construction of new homes rising by more than 11% in February and with industrial production climbing by 0.7% against expectations of a 0.3% increase. While this data indicates that pressure on the economy is currently being held at bay, the clamour surrounding the White House decisions so far is set to grow louder as the year progresses.

For the moment, however, the Trump tariff trauma is taking a breather although another acid test will come on 2 April, when the tariff exemption deadline for Canada and Mexico is set to expire. Instead, investors will switch attention to the Federal Reserve today and in particular its current outlook. A no-change decision has been fully priced in by the market, but the accompanying comments will be of special interest, especially if the Fed’s inflation projections are changed. There could also be an acknowledgement of increased uncertainty and downgraded GDP growth, with the next rate cut not currently expected until June, and with consensus split as to whether there will be one or two reductions over the course of the year.

The latest market stumble leaves the main indices struggling to find any form, and in the year to date the Dow Jones has drifted by 2.3% and the S&P 500 by 4.5%, while the Nasdaq is at the bottom of the performance table with a 9.4% decline.

Amid the noise, Asian markets were mixed with Japan coming back into focus overnight. As expected, the central bank left rates unchanged, although it warned of the “high uncertainties” to come, which briefly lifted the Nikkei, where exporters form a large presence. Indeed, separate data revealed a trade surplus for February, with exports rising by more than 11%, suggesting that going into the tariff turbulence the economy remains in decent shape – for the moment.