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Ryanair leads airline sell-off as FTSE creeps higher
by Chris Marshall on Nov 04, 2013 at 08:42
Ryanair shares dived, with other airline shares trailing in their wake, after the budget carrier warned investors that its profits would fall this year.
Bucking an overall upwards trend higher on European markets, Ryanair (RYA.L) slumped 11% to €5.43 after the Dublin-listed carrier told shareholders that net income would be between €500-520 million euros, which would be a fall from €569 million the previous year.
The wider FTSE 100 was however trading up 0.4% to 6,761, helped by resources companies including ENRC, 5.3% higher to 223p.
Investors were encouraged by more improved growth data from China, where the services Purchasing Managers’ Index (or PMI, a survey of the private sector) showed an improvement to 56.3 in October from 55.4 the previous month. The report comes after data on Friday showed that the country’s manufacturing activity rose to an 18-month high last month, raising hopes that the world’s second largest economy will not suffer a prolonged economic slowdown.
Important economic updates are due in both the US – with the publication of unemployment datae on Friday – and Europe this week, providing tests for market appetite after October’s strong equity rally.
Investors are looking ahead to the European Central Bank’s monthly meeting, which concludes in Frankfurt on Thursday amid raised expectations that weaker recent data will prompt a loosening of monetary policy.
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- easyJet plc (EZJ.L)
- International Consolidated Airlines Group SA (ICAG.L)
- Ryanair Holdings PLC (RYA.L)
On the road
on Dec 06, 2013 at 14:28