You are here: Home - Investing -

Stocks fall again on growth worries

0
Written by:
10/10/2012
The FTSE 100 was heading for its third consecutive day in the red, starting Wednesday's session on the back foot with global growth concerns continuing to weigh on sentiment.
Stocks fall again on growth worries

Trader Simon Furlong said this morning that today looks like “another down day for the markets unless some positive news flow is received”.

Stocks slipped yesterday after the International Monetary Fund (IMF) cut its global growth forecasts for this year and the next. On Monday, the World Bank lowered its growth estimates for East Asia, warning of a deceleration in the Chinese economy.

Meanwhile, US aluminium giant Alcoa kicked off third-quarter earnings season last night after the closing bell on Wall Street. While the firm beat earnings and sales forecasts, the company cut its full-year aluminium demand growth forecast from 7% to 6%, saying that a slowdown in China “slightly impacts the second-half outlook”.

Risks to global financial stability have increased and financial markets have been volatile as European policymakers grapple with the ongoing crisis, the IMF said in its latest assessment of the global financial sector.

The Fund notes that failing to deal with the current issues could end up forcing Eurozone banks into an asset shrinkage of anywhere from $2.8tn to $4.5tn by the end of next year.

Ex-div stocks take a hit Smith & Nephew, Kingfisher and Wolseley were among the falls early on after going ex-dividend. From today, investors will not be able to get hold of their latest dividend payments.

Banking groups were in demand in the opening hour with Lloyds, RBS and Barclays making gains. RBS has agreed to sell two buildings in Frankfurt and Berlin to Axa Investment Managers, the largest German commercial real estate transaction this year, according to reports.

Outsourcing group Capita was a heavy faller after both RBC Capital Markets and Panmure Gordon downgraded their ratings for the stock. Panmure said that the Capita’s premium rating “is at odds with concerns over the quality of future earnings, above average financial leverage and on-going reliance on M&A.”

Drinks giant SABMiller edged higher after expanding its African beer brand, Chibuku, into ten countries across the continent.

On the FTSE 250, N Brown, the internet and catalogue home shopping firm, was a heavy faller after Panmure Gordon downgraded its recommendation to ‘hold’ ahead of the group’s interim results next week. “We move to a ‘hold’ rating from ‘buy’, following sector outperformance and consequent multiple expansion towards our target multiple on the back of the July trading statement,” the broker said.

FTSE 100 – Risers

Lloyds Banking Group (LLOY) 38.33p +3.57%

Royal Bank of Scotland Group (RBS) 263.10p +2.25%

Anglo American (AAL) 1,840.50p +1.49%

Evraz (EVR) 250.40p +1.21%

Barclays (BARC) 224.00p +1.11%

Kazakhmys (KAZ) 736.00p +0.96%

InterContinental Hotels Group (IHG) 1,657.00p +0.91%

BT Group (BT.A) 223.50p +0.81% Rio Tinto (RIO) 3,053.00p +0.76%

Eurasian Natural Resources Corp. (ENRC) 328.20p +0.71%

 

FTSE 100 – Fallers

Smith & Nephew (SN.) 654.00p -2.75% Aggreko (AGK) 2,198.00p -1.88%

WPP (WPP) 857.50p -1.61%

Wolseley (WOS) 2,644.00p -1.60%

Capita (CPI) 730.00p -1.35%

Tesco (TSCO) 310.65p -1.21%

Rexam (REX) 448.10p -1.21%

Kingfisher (KGF) 268.00p -1.18%

Marks & Spencer Group (MKS) 377.00p -1.13%

Compass Group (CPG) 684.00p -1.08%

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2215807-shutterstock-93153436-1
Investors set to bypass advice

Investors will be doing it for themselves in next year, as self-directed investment is forecast to grow as a result...

Close