LONDON MARKETS: FTSE 100 Ends Lower For Third Straight Day As Burberry, Pearson Drop Sharply
January 17 2018 - 11:25AM
Dow Jones News
By Carla Mozee and Victor Reklaitis, MarketWatch
Off the FTSE 100, shares in Carillion rival Interserve
decline
U.K. stocks closed lower Wednesday, with a slide in shares of
fashion house Burberry Group PLC and publisher Pearson PLC leading
the blue-chip market to its third consecutive drop.
How markets are moving: The FTSE 100 index finished down 0.4% at
7,725.43, moving further away from the all-time closing high of
7,778.64 reached last week.
The pound traded at $1.3822, up modestly from $1.3790 late
Tuesday in New York.
What's driving markets: More corporate updates for the new
earnings season are rolling in, and Burberry shares were big losers
after the luxury-goods maker posted a decline in quarterly sales.
The retail sector will come into further focus Friday with the
release of U.K. retail sales for December, with analysts polled by
FactSet currently expecting a month-over-decline of 0.6%.
Stocks in the U.K. and across Europe also appeared to key off
losses on Wall Street on Tuesday that came as investors returned
following Monday's Martin Luther King Jr. holiday. The Dow Jones
Industrial Average broke above the 26,000 level for the first time
on Tuesday but closed lower, though it was rallying Wednesday.
The "U.S. markets inability to hold onto these sorts of gains
might suggest that we could be due some sort of pullback, after the
strong start to this year. Either that or investors are starting to
get a little nervous ahead of a possible U.S. government shutdown
at the weekend," said CMC Markets chief market analyst Michael
Hewson in a note.
The collapse of British construction and support services
heavyweight Carillion PLC
(http://www.marketwatch.com/story/carillion-collapses-after-rescue-talks-with-creditors-uk-government-fail-2018-01-15)(CLLN.LN)
this week continued to hanging over markets. Off the FTSE 100,
Interserve PLC shares (IRV.LN) dropped as much as 10% following a
Financial Times report
(https://www.ft.com/content/1aa17614-fab7-11e7-a492-2c9be7f3120a)
the Carillion rival is under U.K. government watch on financial
fears. The stock pared losses, finishing 0.4% lower.
Stock movers: Burberry (BRBY.LN) slumped 9.3% after the fashion
house said third-quarter retail sales fell 2%
(http://www.marketwatch.com/story/burberry-retail-sales-slip-backs-2018-guidance-2018-01-17).
Comparable retail sales rose 2%, but in the U.K. fell by a high
single-digit percentage, with the company citing tough comparables
set by exceptional 40% growth a year earlier.
Pearson (PSON.LN) fell 4.6% after the publisher said sales for
U.S. higher education courseware fell 3% on an underlying basis
(http://www.marketwatch.com/story/pearson-upbeat-on-2017-results-no-change-to-tax-2018-01-17)
in the first nine months of 2017, in line with the lower end of its
guidance.
Informa PLC (INF.LN) slid 5.7%, with the publisher and events
company in continued talks about a purchase of UBM PLC (UBM.LN) .
Informa and UBM set out the proposed terms of the deal on
Wednesday.
(http://www.marketwatch.com/story/ubm-informa-in-talks-for-53-bln-merger-2018-01-17)
Topping advancers, Rolls-Royce Holdings PLC (RR.LN) rose 5.4%
after the engineering company said it will further simplify its
business
(http://www.marketwatch.com/story/rolls-royce-to-streamline-business-structure-2018-01-17),
and Mediclinic International PLC (MDC.LN) added 3.1%.
(END) Dow Jones Newswires
January 17, 2018 12:10 ET (17:10 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Mar 2024 to Apr 2024
FTSE 100
Index Chart
From Apr 2023 to Apr 2024