CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

FTSE 100 down, but Dunelm leads mid-cap rise

The British blue-chip benchmark slipped on Monday after rallying at the end of last week, but mid-cap companies performed well, with retailer Dunelm leading the pack after publishing a strong set of results in its second quarter.

The FTSE 100 slid by as much as 56 points to 6781 on Monday, falling by 0.8%, with it hovering at 6804 levels as of 4:15pm GMT.

The index lost the gains it made on Friday last week, as fears of a global economic slowdown and yet more uncertainty over Brexit ahead of the parliamentary vote next week make investors increasingly cautious.

Dunelm lead mid-cap rise

But while UK blue chips struggled on Monday, mid-cap companies faired relatively well, with British furnishings retailer Dunelm leading the action outside the FTSE 100 after wooing investors after upgrading its profits forecast following a strong Q2 performance.

Shares in Dunelm are up 14% to £6.63 as of 4:20pm GMT on Monday – the highest the stock has reached in the last 11 months.

The company was able to buck the trend seen across much of the UK retail sector, reporting strong Christmas trading with like-for-like sales increasing 5.7% in the three months to December.

After a strong second quarter, Dunelm is expecting its pre-tax profit for the first half of the fiscal year to hit £70 million, representing a £10 million increase from the same period a year ago.

The company also increased its full-year profits forecast to between £108 million and £112 million, up from £102 million last year.

Mid-cap players rally

The FTSE 250 is up 1% hitting a high of 17976 as of 4:35pm GMT on Monday, with mid-cap players picking up the slack left by their blue-chip rivals.

Among the index top performers were British carmaker Aston Martin climbing as much as 2.45% this session, with its share price hovering at £12.10 levels, up 1.71%, near the end of trading on Monday.

Meanwhile, online food delivery company Just Eat, and sports retailer JD Sports have both rallied by more than 3%, with share prices sitting at £6.08 and 375p respectively as of 4:35pm on Monday.

Investors will be looking closely at other UK retailers this week, including Sainsbury, Tesco, Superdry, Marks & Spencer, Ted Baker and DFS, with all of them set to publish trading updates over the next few days.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

See an opportunity to trade?

Go long or short on more than 17,000 markets with IG.

Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.