LONDON MARKETS: Marks And Spencer Shares Swing Lower, Keeping FTSE 100 In Check
08 Novembre 2017 - 11:16AM
Dow Jones News
By Carla Mozee, MarketWatch
Miners rise despite a slowdown in growth of Chinese imports,
exports
U.K. stocks stepped lower Wednesday, after snapping a win streak
in the prior session, as mining shares gained despite a downbeat
reading on Chinese trade.
Investors once again were wading through a stream of corporate
financial updates and earnings reports. Shares in Marks and Spencer
Group PLC slid after the major retail chain said it was facing
"headwinds" in its food business.
What markets are doing: The FTSE 100 index down less than 2
points at 7,510.76, led by financial, industrial and consumer
services shares. But the consumer-goods and utility sectors were in
the red. On Tuesday, the index dropped 0.7%
(http://www.marketwatch.com/story/fall-for-retailers-keeps-ftse-100-in-check-2017-11-07),
the biggest decline in about two weeks, according to FactSet
data.
The pound fetched $1.3135, down from $1.3171 on Tuesday.
What's moving markets: Retail stocks were under pressure, led by
Marks and Spencer. They fell in the prior session after a
disappointing reading on retail sales and Barclays figures showed a
slowdown in consumer spending.
Read:Weak British retail sales flash 'warning sign' for crucial
shopping season
(http://www.marketwatch.com/story/weak-british-retail-sales-flash-warning-sign-for-crucial-shopping-season-2017-11-07)
Meanwhile, mining shares gained even after Chinese trade data
showed exports and imports grew slower than expected
(http://www.marketwatch.com/story/china-trade-surplus-widens-in-october-2017-11-08)
in October. China's manufacturing industry is a key buyer of
industrial and precious metals.
"China is making a concerted effort to move towards a more
service-focused economy. That being said, their demand for minerals
is still a major driver of commodity prices and mining companies,"
said David Madden, CMC Markets analyst, in a note.
M&S pulls on retailers: Marks and Spencer shares (MKS.LN)
dropped 2.6% after moving higher at the market open. The retail
chain reported a fall in adjusted profit
(http://www.marketwatch.com/story/marks-spencer-profit-falls-on-clothing-sales-2017-11-08)
that topped forecasts. But the company said it was pulling back on
its plans for new Simply Food stores
(http://corporate.marksandspencer.com/documents/reports-results-and-publications/press-releases/201718/half-year-results-for-26-weeks-to-30-september-2017.pdf).
"The headwinds facing our food business have intensified as
competitors have encroached on some of our space with the rapid
growth of convenience," said M&S Chief Executive Steve Rowe in
a statement.
While M&S has been working to sort out poor performance in
its clothing and home departments, until now, the food business has
been seen as steady.
"Food-store expansion is being scaled back a touch now, which
may disappoint investors since food has been the bright spot for a
while," Neil Wilson, senior market analyst at ETX Capital, said in
a note.
Among other retailers, Next PLC (NXT.LN) shares slipped 0.2%,
while Kingfisher PLC (KGF.LN) shares shed 0.2%, extending their
declines from Tuesday. Shares in Associated British Foods PLC
(ABF.LN) , which runs fast-fashion company Primark, were down
2.6%.
Stock movers: In the mining group, Fresnillo PLC (FRES.LN) rose
0.6%, Rio Tinto PLC (RIO) (RIO) (RIO) gained 0.4%, and Randgold
Resources PLC (RRS.LN) was up 0.4%. But Antofagasta PLC (ANTO.LN)
was down 0.3%.
Persimmon PLC (PSN.LN) fell 3%. The home builder said total
sales per site since reporting its half-year results were in line
with the year-ago period. Forward sales beyond 2017 were up 10%
(http://www.marketwatch.com/story/persimmon-forward-sales-up-10-2017-11-08),
the company said.
Shares in SSE PLC (SSE.LN) were up 0.7% after the company said
it has made an agreement
(http://www.marketwatch.com/story/sse-innogy-agree-to-merge-two-uk-retail-units-2017-11-08)
with Innogy (IGY.XE) to merge two of their U.K. retail energy
units, as it reported a fall in first-half profit for fiscal
2018.
(END) Dow Jones Newswires
November 08, 2017 05:01 ET (10:01 GMT)
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