FTSE 100 shares ended lower on Monday, despite a valiant surge from advertising behemoth WPP (LON:WPP).
The blue-chip FTSE 100 closed 0.6% lower at 6,954. The ticker which never saw upside all session, also finished the month 30 points poorer.
WPP was the biggest riser on the FTSE 100, up 4.1% at 1,778p, despite seeing UK sales growth slow, which it said could be "the first signs of Brexit anxiety".
However, revenues at the company were boosted by the weaker pound.
Overall sales for the July-to-September period went up 23.6% to £3.1bn. But when adjusted to take account of currency moves, the increase was just 7.8%.
But elsewhere the mood on the bourse was downbeat, and even sterling failed to perk up after Prime Minister Theresa May defended beleaguered central bank governor Mark Carney if the Remain supporter decided to stay at the Bank of England until 2021. At the weekend Carney said he was seeking to end his tenure in 2018 without extension, while some politicians have been seeking his immediate dismissal.
Shares in clothing retailers were coming under pressure, with Next (LON:NXT) shares down 3.2% at 4816p ahead of its trading statement later this week.
The mid-cap FTSE 250 lost another 100 points, or 0.6%, to close at 17,544 and led by Tullow Oil plc (LON:TLW), down 5.8% to 264.7p. Broker Jefferies International reiterated its ‘Underperform’ rating and said the price target was 175p.
The FTSE AIM 100 Index was down 0.2% at 3940 and the FTSE AIM All-Share Index down 0.1% at 822.
London’s shares gaining were in the minority of 24%, losers 38% and unchanged 38%.
Late session
2pm...
Shire leads the losers
Druggie unveils Q3 results Tuesday
FTSE 100 still in doldrums
Has the market got wind of bad news from Shire Plc (LON:SHP), which delivers third quarter earnings on Tuesday?
Judging from the share price (off 4%) the answer would appear to be yes.
For the latest market movers click here...
For what's trending click here....
Previewing the three-monthly update, financial news site MarketWatch said revenues and earnings are expected to have doubled thanks to the US$32bn takeover of Baxalta.
All eyes in the City will be on whether Shire can deliver more than the US$700mln anticipated cost-savings.
At 2pm, Shire topped the index of blue-chip shares, which was down 42 points 6,953.6.
Midday
WPP top riser
Retailers among top fallers
RBS in the doghouse (again)
Speculation mounting over Carney's role at BoE
The FTSE's morning slide continued as it approached the half way point, shaving off another few points to stand at 6,972.7, 30 points down on this morning’s open.
Retailers have led it lower, with Next Plc (LON:NXT) slipping nearly 4% in the morning session to trade at 4,807p.
British advertising and PR firm WPP group (LON:WPP) has made the biggest gains so far on Monday, adding 64p, or just shy of 4%, to its share price which now stands at 1,772.
In the world of the small caps, hair and skin treatment specialist InnovaDerma PLC (LON:IDP) was one of the big risers this morning after it secured distribution deals to sell its Skinny Tan tanning lotion across the pond in the US.
Things weren’t looking quite so rosy for power solutions specialist Turbo Power Systems Inc (LON:TPS), which slipped by more than 15% in early trading after a disappointing set of quarterly results, coupled with guidance that full years would be hit by delayed sales.
Elsewhere, Bank of England governor Mark Carney is under pressure to clarify when he'll leave his position at the bank.
Reports over the weekend suggested he could walk as early as 2018, although others today have said 2021 is a more likely departure date.
FTSE 100 still lower as traders await Central Banker decisions - 10.25am
UK shares are still lower as investors look to Fed and BoE decisions later in the week.
The blue chip index is down 0.31%, or around 21 points, at 6,973.
WPP (LON:WPP), the global ad agency is on the podium as its third quarter revenue beat consensus and despite the slow down in the UK. Shares gained over 3% to 1,763p.
City broker Liberum said the results were 'in line' and rates shares a 'hold'.
WPP's like-for-like net sales growth coming at 2.8%, versus consensus of 2.7% is likely to be seen as reassuring, given recent weakness, it said.
Interest rate decisions and general economic policy ones are of course closely watched here and across the pond. It is the case that many think Janet Yellen will lift rates in the US as the economy grows.
In the UK, the feeling has been there may be a further cut in the post Brexit-vote fallout and low confidence environment. Also in the mix is concern over governor Mark Carney's role as the governor as he is yet to clarify if he wants to stay for a full eight year term or leave in 2018.
On the losing front on Monday, were retailers. Next (LON:NEXT) lost 2.27% to 4,861p, while Marks & Spencer plc (LON:MKS) said to be the High Street bellwether was down 1.76% at 340.6p
FTSE 100 retailers are taking the brunt - 9:45
As sterling remains under pressure on Monday UK retailers were among the notable fallers in the FTSE 100 with Next Plc (LON:NXT) down the most, losing just shy of 3% to £48.30 per share.
Marks & Spencer Plc (LON:MKS) and Primark owner Associated British Foods Plc (LON:ABF) both dropped around 2%, to 338.6p and £24.57 respectively.
Debenhams Plc (LON:DEB) was down 2% at 53.9p, meanwhile Dixons Carphone Plc (LON:DC.) and JD Sports Fashion Plc (LON:JD.) each lost around 1.5%.
MORE OF MONDAY’S MARKET MOVERS HERE
Elsewhere, third quarter results boosted WPP Plc (LON:WPP) with the advertiser reporting a 23.4% jump in third quarter revenue to £3.6bn. A lot of that coming as a result of sterling weakness, nonetheless on a constant currency basis revenue was up a more than respectable 7.6%, and acquisitions adding 4.4%.
Among the small-caps InnovaDerma Plc (LON:IDP), a spray-tan firm with a LSE standard listing, gainded around 22% to trade at 135p. It comes as the group told investors it had secured a retailing and ‘e-tailing’ distribution deal for ‘Skinny Tan’ – a lotion that boasts to colour skin and ‘reduce the visual appearance of cellulite’.
Russia focussed mine developer Amur Minerals Corporation (LON:AMC) was another standout, rising over 20% after unveiling a new partnership with China’s largest nickel company.
FTSE 100 lower, WPP higher, RBS in the doghouse (again) - 8:30
The FTSE 100 fell in early trade with the builders and retailers leading the list of casualties.
At 8.30am, the index of blue-chip shares was off 21.51 points at 6,974.75 as the Hillary Clinton email saga unsettled the financial markets.
Over the weekend FBI director James Comey said he planned to re-open the investigation into the presidential hopeful’s use of a private email server when she was Secretary of State.
The impact was felt overnight in Asia and the negativity is slowly making its way west as the bourses here in Europe open for business.
Back in the UK, the leading riser was WPP group PLC (LON:WPP) after the advertising and marketing giant posted better-than-expected third quarter results.
Royal Bank of Scotland PLC (LON:RSB), meanwhile, was on the receiving end of a downgrade from Barclays, which chopped its price target on the stock to 175p from 200p. It remains ‘underweight’.
Hillary and the FBI (part-two) - 6:45
The FBI email probe, which threatens to blow the presidential race wide open, unsettled the markets overnight.
Asia’s main bourses endured a choppy Monday session, while the FTSE 100 is predicted to open in negative territory.
The spread betters reckon the UK’s index of blue-chip shares will start the week off 13 points at 6,983.26.
The news of the weekend was of course the decision by FBI director James Comey to re-open the investigation into Hillary Clinton’s use of a private email server when she was Secretary of State.
The move, just over a week before the election, could turn the tide for Republican nominee Donald Trump, whose campaign had been mired by scandal.
It is central bank week this week with the US Federal Reserve, Bank of England, Bank of Japan and Reserve Bank of Australia all meeting. Each one of them is expected to stand pat on interest rates.
Of course the Bank of England meeting Thursday takes on more significance amid reports that governor Mark Carney may quit.
This after his doom-laden economic predictions about the impact of Brexit have proved wide of the mark.
- Pound trading at $1.2188.
- Brent crude 26 cents lower at US$49.45 a barrel.
- Gold $1.20 higher at $1278 an ounce.
City Headlines
- Markets are becoming increasingly hopeful that Mark Carney is on the verge of confirming that he will extend his term at the Bank of England beyond 2018 – Telegraph.
- A long-awaited report into a unit of Royal Bank of Scotland has found no firm evidence that it deliberately pushed small businesses into bankruptcy for its own profit – FT.
- Deutsche Bank is preparing to cash in on a $400 million stake in a Las Vegas gaming group, giving the bank a boost at a time of lingering concerns over the state of its balance sheet – FT.
- FreeAgent, a UK start-up that provides accounting software to small businesses, is pressing ahead with plans for an initial public offering despite a sharp drop in the number of companies planning to float in London – FT.
- Nissan was told the UK was seeking an EU deal that would mean no tariffs for car manufacturers and no bureaucratic impediments to trading, Greg Clark, the business secretary, has revealed – Guardian.