News Column

Markets : Warnings end FTSE's winning streak

February 14, 2014

Dominic Jeff

Profit warnings from industrial heavyweights Rolls-Royce and Tate & Lyle and disappointing data from the US put an end to the Footsie's winning streak yesterday.The FTSE 100 Index fell by as much as 65 points at one stage but recovered some lost ground to finish 15.61 points lower at 6,659.42, after six days on the rise.William Nicholls at London Capital Group said: "These are certainly troubling times for the equity markets following what seemed like a fresh start a couple of weeks ago. News in the US continues to drive sentiment and this time it's the turn of the retail sales to disappoint."Rolls shares dived 14 per cent, down 165p at 1,045p after it warned that profits and revenues will fail to grow this year as a result of defence spending cuts. And Tate was 16 per cent lower after saying that tough trading conditions in established markets meant profits would be flat in the current year. Shares slumped 126.5p to 660p as it also highlighted the prospect of weaker sucralose prices.Shares in Lloyds Banking Group lost some of their recent froth despite its announcement of a return to the black in 2013. Sentiment towards the part-nationalised bank has been impacted by the continued rising bill for payment protection insurance mis-selling and the City's wait for a restoration in dividend payments, with the stock down 2.2p to 81.3p.But British Airways and Iberia owner International Airlines Group rose 12.4p to 442p after unveiling an agreement between the Spanish airline and its pilots' union over productivity changes.And Imperial Tobacco finished as the top blue-chip riser after it said net revenues rose 1 per cent in the last quarter. It was 126p higher at 2,351p.NEW YORK: US stocks rose last night, with the Nasdaq up for a sixth straight session, as investors looked past disappointing data on jobs and consumer spending, chalking the weakness up to weather instead of fundamentals.The Dow Jones industrial average rose 63.32 points, or 0.4 per cent, to close at 16,027.26, the S&P 500 finished up 10.51 points, or 0.58 per cent, at 1,829.77 and the Nasdaq Composite added 39.384 points or 0.94 per cent, ending at 4,240.672.

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Source: Scotsman, The (Scotland)

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