FTSE close: Burberry up; M&S & Vodafone down
17.10 (close)
Falls: Ex-dividend factors will hold shares back.
The London market closed in the red today after disappointing jobs data in the US reignited fears over the strength of the global economic recovery.
Private employers in the US added just 38,000 jobs in May, down from 177,000 in April, according to payroll processor ADP.
The FTSE 100 index, already weighed down by disappointing manufacturing figures in the UK, closed 61.4 points down at 5928.6 as the US data pushed it lower.
The Markit/CIPS Purchasing Managers' Index showed a further slowdown in manufacturing activity in May, which fell to a 20-month low.
This weighed on the pound which was down at 1.63 against the US dollar and 1.13 against the euro.
The top flight was also impacted by a number of companies going ex-dividend, meaning they are trading without the right to the latest shareholder payout.
Those fallers included Vodafone, which dropped 7.4p to 161.6p, while Marks & Spencer was down 12.5p to 386.4p, a decline of 3%.
On a brighter note, sentiment towards fashion label Burberry remained strong in the wake of its recent full-year results, which showed a 39% increase in underlying pre-tax profits to £298m. Shares were 7p higher at 1326p.
Other risers included security services group G4S, which topped the risers board, after a broker upgrade lifted shares 5.1p to 291p.
Miners were lifted by the impact of a weaker dollar on commodity prices. Those on the way up included Rio Tinto, which lifted 10p to 4255p, while Fresnillo added 20p to 1478p.
Outside the top flight, Tate & Lyle rose 5% as analysts continued to applaud last week's figures from the sweetener group that showed underlying annual profits rose by 34%. The shares were up 31p to 651.5p.
In corporate news, Bathstore owner Wolseley and floor coverings firm Topps Tiles were both under pressure amid tough trading conditions in the UK.
Updates from the pair highlighted the ongoing squeeze on spending levels among consumers, leading to disappointing sales figures in both cases.
Wolseley shares were nearly 2% lower or 37p cheaper at 2021p, after UK profits fell by 10% to £28 million in the three months to April 30.
However, this was offset by stronger-than-expected trading in the United States.
Topps Tiles was 6% lower in the FTSE 250 Index, declining 3.8p to 63.8p, after it said like-for-like sales decreased 2.1% in the last seven weeks, compared with an increase of 1.8% over the six months to April 2.
While Topps said its performance was 'not significantly' different from expectations, analysts pencilled in lower full-year forecasts as a result of the guidance, which came as the company posted interim profits of £7.2m.
The biggest Footsie risers were G4S up 5.1p at 291p, Hammerson ahead 6.8p at 486.3p, Fresnillo up 20p at 1478p and Aggreko ahead 15p at 1882p.
The biggest Footsie fallers were National Grid down 30p at 596p, Vodafone off 7.4p at 161.6p, Lloyds Banking Group down 1.9p at 50p and Glencore off 17.2p at 513.9p.
15.25: Shares in Topps Tiles are 6% in the red after recent sales stumbled and the firm conceded that customer spending was likely to come under ongoing pressure.
Topps' stock fell 4p to 63.5p as the company unveiled adjusted half-year pre-tax profit of £7.2m against £7.8m during the equivalent trading period a year earlier
We have more on that here, including analyst reaction.
The Dow has racked up further losses and is trading down 101.9 points at 12,4676.9. Weak jobs data today has compounded disappointment over yesterday's house price figures, which revealed the US property market has hit a double dip.
The FTSE 100 is 41.4 points lower at 5,948.6.
Brent crude is trading at around $115.50 a barrel. Gold was fixed this morning at $1,532.25 an ounce compared with $1,536.50 at the previous close.
14.40:
Over on Wall Street, the Dow Jones is 44.12 points lower at 12,525.67.
It follows on from weak US house price data yesterday.
Bank in London, the FTSE is 21.04 points down at 5968.95.
13.40:
At lunchtime, the FTSE is losing the fight after gloomy manufacturing and mortgage lending data knocked sentiment, with ex-dividend factors also taking a toll.
After breaking even for much of the morning, the FTSE 100 is now 22.58 points lower at 5967.41.
UK manufacturers added to the worries after the latest Markit/CIPS Purchasing Managers' Index - where a reading of more than 50 indicates growth in overall activity - fell to 52.1 in May, from a downwardly revised 54.4 in April.
The top flight was also impacted by a number of companies going ex-dividend, meaning they are trading without the right to the latest shareholder payout.
Those fallers included Vodafone, which dropped 5p to 163.9p, while Marks & Spencer was down 9.1p to 389.8p, a decline of 2%.
On a brighter note, sentiment towards fashion label Burberry remained strong in the wake of its recent full-year results, which showed a 39% increase in underlying pre-tax profits to £298 million. Shares were 20p higher at 1339p.
Other risers included security services group G4S after a broker upgrade lifted shares 5.2p to 291.1p.
And miners were lifted by the positive impact of a weak US dollar on commodity prices, as investors prepared for more disappointing figures from the American manufacturing sector.
12.25:
We have more on Wolseley, where strong overseas trading has allowed it to shrug off a difficult quarter in the UK market.
Gains in its US, Nordic and French arms helped lift Wolseley's operating profit by 30% to £131m in the three months to April 30. Like-for-like revenue was up 6% at £3.27bn.
But the firm reported lower UK revenues and profits after a tough quarter for its brands Bathstore and Plumb Center.
Its shares are 2p lower at 2,056p. This follows gains yesterday on rumours that it is putting three UK units – Build Center, Electric Center and Encon - up for sale.
The FTSE 100 is off 14.7 points at 5,975.3.
11.15:
The Footsie is swinging about this morning but is currently about level - 2.97 points lower at 5987.02.
In economic news today, Mortgage lending slumped during April with lenders blaming the bank holidays for the lowest level of loans since December, according to the Bank of England.
Net lending, which strips out redemptions and repayments, rose slightly compared with the previous month but remained muted at £739m, well down on pre-credit crunch levels of more than £9bn a month.
09.40:
The FTSE 100 clawed back ex-dividend losses with miners higher, although Wolseley and Topps Tiles fell after profits and sales disappointed.
Ex-dividend factors knocked a hefty 16.83 points off the FTSE 100 index on Wednesday with Capital Shopping Centres, Intertek, Marks & Spencer, National Grid, Vodafone and WPP all trading without their payout attractions.
But the FTSE 100 weathered the worst of these losses and by 09.35 was 1.9 points lower at 5988.15.
Miners set the pace, with Rio Tinto up 59.5p at 4304.5p, Lonmin 20.5p stronger at 1620.5p and Anglo American 31.75p higher at 3061p.
Shares in Bathstore owner Wolseley and floor coverings firm Topps Tiles were both under pressure today amid tough trading conditions in the UK.
Updates from the pair highlighted the ongoing pressure on spending levels among consumers, leading to disappointing sales figures in both cases.
Wolseley shares were 1% lower, off 24.5p to 2033.5p, after pressure on its Bathstore and Plumb Center brands meant UK profits fell by 11% to £28 million in the three months to April 30.
And Topps Tiles was 5% lower in the FTSE 250 Index, declining 3.75p to 63.75p, after it said like-for-like sales decreased 2.1% in the last seven weeks, compared with an increase of 1.8% over the six months to April 2.
While Topps said its performance was 'not significantly' different from expectations, analysts pencilled in lower full-year forecasts as a result of the guidance, which came as the company posted interim profits of £7.2m.
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