Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a745032

FTSE slumps as US sell-off weighs

by Daniel Grote on Apr 07, 2014 at 10:09

FTSE slumps as US sell-off weighs

The FTSE has dipped as traders reacted to a sell-off in the US late on Friday following weaker-than-expected jobs figures.

The FTSE dropped 32 points, or 0.5%, to 6,663, following the lead of the S&P 500, which closed down 1.3% on Friday. Last week’s release of US non-farm payroll figures had initially prompted a rally in US equities, before a sell-off on Friday afternoon. The data showed employment rose by 192,000 in March, below market expectation of 200,000.

Mike van Dulken, head of research at Accendo Markets, said the data had clouded the picture over the US Federal Reserve’s next steps in reducing its money printing programme – known as the ‘tapering’ of quantitative easing.

‘Where the report failed to deliver… was in its inability to convince traders/analysts whether the Fed would slow, leave or speed up its programme of QE3 stimulus reduction,’ he said.

Hargreaves Lansdown (HRGV.L) was the biggest faller, dropping 37p, or 2.6% to £13.99. Insurers were also badly hit, with their recovery following the damage inflicted by Budget changes and a regulatory review of pension sales being stopped in its tracks. Legal & General (LGEN.L) was down 5.2p, or 2.4% at 212.5p, Prudential (PRU.L) fell 23p, or 1.7%, at £13.20 and Aviva (AV.L) dropped 6.5p, or 1.3%, to 491.5p.

House builders Barratt (BDEV.L) and Persimmon (PSN.L) were also amongst the biggest fallers, dropping 2.4% and 1.7% respectively to 400.2p and £13.24p.

One of the few stocks to buck the trend was Tesco (TSCO.L), up 2p, or 0.7% at 289.4p, after it mounted a partial recovery following a fall on Friday on the news chief finance officer Laurie Mcllwee was leaving the supermarket group.

Shore Capital analysts Clive Black and Darren Shirley reiterated their ‘sell’ rating for the stock following news of the exit. ‘The departure of Mr Mcllwee is symptomatic in our minds of a business that is not at ease with itself, united in its direction and comfortable within its own skin,’ they said.

‘Those cultural traits are reflected in the operational performance of Tesco in our view, most notably in the UK, its core market, where it has been sustainably and materially under-performing.’

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment


With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

Look up the shares

  • Hargreaves Lansdown PLC (HRGV.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Legal & General Group PLC (LGEN.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Prudential PLC (PRU.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Aviva PLC (AV.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Barratt Developments PLC (BDEV.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Persimmon PLC (PSN.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Tesco PLC (TSCO.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet