Thursday October 22, 09:24 AM
Glance-FTSE falls 1.1 pct as results, data dent demand
By Simon Falush
LONDON, Oct 22 (Reuters) - Britain's top share index fell
1.1 percent on Wednesday, weighed down by weakness in banks and
commodity stocks as disappointing corporate results and Chinese
data crimped demand for riskier
assets like equities.
By 0800 GMT the FTSE 100 was 55.18 points lower at
5,202.67 after it closed 14.45 points, or 0.3 percent higher on
Wednesday.
U.S. stocks ended lower Wednesday knocked by a late sell-off
in financial issues, after an influential banks analyst
recommended selling Wells Fargo shares, and as a
wider-than-expected loss from Boeing (NYSE: BA - news) disappointed
investors.
Banks weighed heavily on the UK blue chips index following
weakness in their U.S. peers. Barclays (LSE: BARC.L - news) , HSBC (LSE: HSBA.L - news) ,
Standard Chartered (LSE: STAN.L - news) , Royal Bank of Scotland (LSE: RBS.L - news) and
Lloyds Banking Group (LSE: LLOY.L - news) fell 1.1 to 2.6 percent.
After-hours U.S. earnings news also disappointed, with
online auctioneer EBAY (NASDAQ: EBAY - news) forecasting fourth-quarter
results at the low end of expectations while posting in-line
third-quarter numbers.
'We've seen more negative data and results and there's a
worry that the more positive data previously was a flash in the
pan,' said Philip Gillett, sales trader at IG Index. 'Investors
are starting to worry if the rises are sustainable.'
The FTSE 100 has gained 50 percent since touching a six-year
trough in March, having received a further boost earlier in the
month from strong results from the likes of JPMorgan
Asian shares fell on Thursday impacted by disappointment
that Chinese growth data, though robust, offered few surprises.
MINERS SLIP
The Chinese news and a slightly more downbeat demand outlook
hit metal prices which knocked miners.
Rio Tinto (LSE: RIO.L - news) , Xstrata (LSE: XTA.L - news) , Lonmin (LSE: LMI.L - news) ,,
Kazakhmys (LSE: KAZ.L - news) and Fresnillo (LSE: FRES.L - news) fell 1.7 to 4 percent.
Anglo American (LSE: AAL.L - news) outperformed slightly, falling 1.2
percent after it announced a restructuring that will shed a
quarter of overhead staff and save $120 million.
Energy stocks were also weaker as crude fell
slightly, though it remained above $80 per barrel.
BG Group (LSE: BG.L - news) , BP, Royal Dutch Shell (Amsterdam: RDSA.AS - news) and
Cairn Energy (Virt-X: CNE1.VX - news) fell 0.8 to 1.2 percent.
Investor (Stockholm: INVE-B.ST - news) attention will be on September British retail sales
numbers when they are released at 0830 GMT, with a 0.5 percent
rise expected on the month, after a flat reading in August,
giving a year-on-year increase of 2.8 percent, up from 2.1
percent in the previous month.
Indicating an improving outlook on the high street, midcap
department store group Debenhams (LSE: DEB.L - news) announced full-year
profits towards the top end of expectations.
But this failed to lift the stock, which fell 1.3 percent
while Next and Marks & Spencer fell 0.7 and 1.1
percent, respectively.
Experian (LSE: EXPN.L - news) was the strongest among a handful of blue chip
gainers, up 1.5 percent after Goldman Sachs (NYSE: GS - news) upgraded the credit
checking firm to 'buy' from 'neutral' and lifted its target.
Among mid caps, pub groups were the runaway gainers with
Eneterprise Inns Punch Taverns and Marstons up 3.9 to 18.4 percent after the Office of Fair Trading
gave the go-ahead for the industry to continue operating its
'beer tie' arrangement.
(Reporting by Simon Falush; Editing by Hans Peters)
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