FTSE Drops After Supermarket Underperformance

Leading shares have fallen back, weighed down by some poor corporate results and continuing worries about global growth, particularly in China.

So the FTSE 100 is down 29.33 points at 6370.40 following a late sell-off on Wall Street and concerns that, although HSBC’s manufacturing index for China had risen from 50.2 to 50.4, the country’s economy is still flagging. Mike van Dulken, head of research at Accendo Markets, said:

What failed to inspire was the key output component slipping to a five month low and HSBC saying “while manufacturing likely stabilised in October the economy continues to show signs of insufficient effective demand”. Cue more calls for more stimulus.

Among the fallers, Tesco has inevitably dropped back after a larger than expected black hole, down 8.25p to 174.75p.

Unilever – where new Tesco boss Dave Lewis used to work – has lost 55p to £24.79 after the consumer goods group reported a 2.1% rise in third quarter underlying sales, below expectations of a 3.7% increase and its weakest quarterly growth in nearly five years.

The maker of Dove soap and Marmite blamed a weak European economy and a slowdown in emerging markets, including China. British American Tobacco make similar comments on Wednesday.

But the biggest faller at the moment is Tullow Oil, down 27p at 500.5p. The company announced disappointing results from a series of exploration wells in Kenya.

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza