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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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London market falls on Greek uncertainty and manufacturing decline

Rising industrial production masks falling manufacturing output

Britain's top shares extended losses on Tuesday as nervous traders awaited Greek debt news and manufacturing data disappointed.

The FTSE 100 Index fell 20.3 points to 6515.38, Germany's DAX reversed 93.7 points and the CAC-40 in Paris dropped 48.9 points.

A Eurogroup meeting in Brussels was billed as the last throw of the dice for Athens to present a set of terms to which its creditors can agree over its debt repayments.

The talks will not feature controversial finance minister Yanis Varoufakis, who resigned after the referendum in which two thirds of the country voted a resounding "no" to agreeing to the previous set of bailout terms.

It could be a long day. The meeting is crucial as Greek banks will reportedly run out of money from Wednesday night.

The European Central Bank turned down a request from Greece to provide more emergency funding for the banks, increasing pressure on Athens to make concessions.

Joshua Mahony at spread-betting firm IG said: "It's unlikely Sunday’s referendum will have swayed the creditors to the extent that their 'red lines' have moved enough to get a deal across the line. The two sides arguably seem further away than ever."

Back in London, falling manufacturing output data cast a cloud over figures showing rising industrial production. The latter was fuelled by a bounceback in oil prices and higher mining activity.

On the corporate front, high street bellwether Marks & Spencer (LON:MKS) lost early gains to stand 6p off at 541p after a trading update.

Marks said food did well again but clothing sales were flat in a tough market as cool weather in May and June dampened demand.

AIM-listed Asos (LON:ASC) also fell 110p to 3741p despite a forecast from the online fashion retailer of full-year results at the top end of hopes.

Industrial conglomerate Smiths Group (LON:SMIN) backtracked 39p to 1102p after the maker of security and medical equipment appointed GKN executive Andrew Reynolds Smith as its new chief executive, replacing Philip Bowman.

Energy companies ran out of gas as the Competition and Markets Authority criticised a lack of competition in the electricity and gas market. British Gas owner Centrica (LON:CNA) declined 3.8p to 263.6p and SSE headed 16p south to 1558p.

But price comparison websites, which stand to benefit from people switching energy suppliers, were on the up. Moneysupermarket.com ticked up 5.8p to 291.2p and the owner of Confused.com, Admiral (LON:ADM), lifted a penny to 1392p.

Stagecoach (LON:SGC) shares slowed 3.8p to 399.6p as the rail and bus group and the government failed to agree a new deal for its South West Trains franchise. Stagecoach will now have to take its chances alongside other applicants.

Elsewhere, Xtract Resources (LON:XTR) subsided 0.01p to 0.27p as a forecast of potentially higher revenue from its Fair Bride gold project in Mozambique failed to impress.

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