FTSE Close: Paragon up; Thomas Cook down

 

17.05 (close)

People walk past London's Stock Exchange

Taking stock: The London market closed 5 points higher at 5578

The FTSE 100 Index just managed to keep its head above water today after spending much of the session in the red following mixed economic data from the US and concerns over European debt.

The London market closed 5 points higher at 5578, after slipping close to the 5500 mark during earlier trading.

Markets on both sides of the Atlantic wavered after the Federal Reserve Bank of Richmond reported a decline in America's manufacturing activity in August.

But optimism was boosted by the S&P Case-Shiller home-price indexes, which revealed a rise in US home prices in July, although this was offset by a report from The Conference Board, a private research group, which said its index of consumer confidence fell to 48.5 this month from 53.2 in August.

Investor confidence was still reeling after yesterday's ratings downgrade on Anglo Irish Bank, one of Europe's more troubled lenders, heightening fears over a European debt crisis.

The mixed economic data saw the pound hold against the dollar at 1.58, but slip against the Euro to 1.16.

In London, holiday firms were among the biggest casualties after Thomas Cook warned it was making "substantial" cost cuts in the UK amid difficult trading and following an unexpected £10m hit to profits.

Thomas Cook fell 6% in the FTSE 250, off 11.6p to 171.7p, which impacted its top tier counterpart TUI Travel, down 2.8p to 218.4p.

Hedge fund giant Man Group was another blue-chip loser, off 5.2p to 214.1p, after it said interim profits would be around 26% lower than a year earlier.

In the FTSE 250, mortgage lender Paragon soared 3%, a 5.8p gain to 169.1p, as it said it would restart buy-to-let lending for the first time since the financial crisis.

Elsewhere, sportswear retailer JJB Sports dropped 12% - or 1.4p to 9.5p - after revealing moves to ramp up cut-price promotions to offset difficult trading conditions.

Rival and Sports World parent Sports Direct International was enjoying better fortunes, up 6.1p to 137.8p.

But housebuilder Barratt Developments suffered after a broker downgrade from Morgan Stanley, with shares dropping 2.6p to 101.4p, despite more positive comments on the UK market as a whole.

Video games and console retailer Game Group was also seeing heavy falls after worse-than-expected half-year losses. It swung into the red by £18.8m against underlying profits of £14.5m a year earlier.

Shares fell 11%, or 7.2p to 58.5p, despite company hopes for a better second half.

Irn Bru maker AG Barr was another to lose ground, down 21p to 1230p as investors took profits after the group announced a 19% leap in half-year profits.

The biggest Footsie risers were Sage group, up 13.7p to 280p, Prudential, ahead 22p at 637.5p, Resolution, up 8.3p at 244.2p, and Essar Energy, ahead 14.2p at 452.7p.

The biggest Footsie losers were Man Group, down 5.2p at 214.1p, BAE Systems, off 8.1p at 338.3p, Hammerson, down 8.6p at 395p and Wolseley, off 25p at 1495p.

15.40 Pawnbroker Albemarle & Bond's shares are up 22p to 289.5p after it reported profits for the 19th year in a row.

The firm has done particularly well off the back of the recent record gold prices, having opened a gold-buying service last year.

14.40:

On Wall Street, the Dow Jones opened slightly lower today.

The Dow was 234.89 points lower in early trading on the Street of Dreams.

Back in Blighty, the Footise has clawed back early losses and is now back above water - 1.59 points higher at 5575.01.

13.00:

The FTSE has recovered sharp falls from this morning after weak profits news from Thomas Cook and Man Group added to fears over EU economies.

The Footsie fell around 60 points in first trading today, but has now recovered to sit 13.21 points lower at 5560.21.

In the FTSE 250, mortgage lender Paragon soared 5% after a 7.5p gain to 170.8p as it said it would restart buy-to-let lending for the first time since the financial crisis.

11.40:

Shares in computer games store Game Group have plunged a hair-raising 12.5% today.

Game today revealed half-year losses of £18.8m, compared with underlying pre-tax profits of £14.5m a year earlier.

The company suffered a 16.2% slide in UK and Ireland sales during the six months to 31 July.

Meanwhile, the Footsie is rallying. It has beaten back the worst of the losses inflicted this morning and is now 20.21 points lower at 5553.21.

10.40:

Man Group is the fastest Footsie faller of the morning, down 6.2p, or 2.8%, at 213.1p.

Man Group today said clients withdrew a net $600m in the three months to September, confounding hopes that a recovery in its flagship fund would help it follow the wider hedge fund industry and attract investors once again.

Overall, the FTSE 100 is 66.05 points lower at 5507.37.

10.25:

The third and final estimate for UK GDP for the April to July period was published by the Office for National Statistics today.

The ONS held its estimate for growth of gross domestic product (GDP) between April and June at 1.2%, a pace not seen since 2001.

On the stock market, the FTSE 100 is 62.10 points lower at 5511.32.

09.40:

We've got more detailed reports on the results from Thomas Cook and JJB.

Thomas Cook has warned of job cuts today as it looks to make 'substantial' cost savings ahead of public spending cuts.

Thomas Cook shares ar 11.2p, a whopping 6%, lower at 172.10p. It is the fastest faller in the FTSE 250 so far today.

While JJB has been given the green light by its bank, RBS, to ramp up promotional activity in order to keep its sales turnaround on track.

JJB Sports shares are 1.25p, 11.3%, down at 9.75.

Check through the day for more on the companies reporting today.

The FTSE 100 is 61.98 points lower at 5511.44.

09.35:

The FTSE 100 suffered sharp falls today after weak profits news from Thomas Cook and Man Group added to fears over EU economies.

Renewed worries over Europe's debt woes sent the FTSE 100 Index slumping into the red in early trading, down 58.8 points at 5514.62.

At 9.25am, some 92 of the 100 blue chip stocks were in negative territory.

The London market started on the back foot after heavy falls in Asia as markets reacted to a ratings downgrade on Anglo Irish Bank, one of Europe's more troubled lenders.

Holiday firms were among the biggest casualties after Thomas Cook warned it was making 'substantial' cost cuts in the UK amid difficult trading and following an unexpected £10m hit to profits.

Thomas Cook fell 3% in the FTSE 250, off 6.2p to 177.1p, which impacted its top tier counterpart TUI Travel, down 4.5p to 216.7p.

Hedge fund giant Man Group was another blue chip loser, off 5.1p to 214.2p, after it said half-year profits would be around 26% lower than a year earlier.

In the FTSE 250, mortgage lender Paragon rose 6% after a 9.8p gain to 173.1p as it said it would restart buy-to-let lending for the first time since the financial crisis.

Elsewhere, sportswear retailer JJB Sports dropped 9% - or 1p to 10p - after revealing moves to ramp up cut-price promotions to offset difficult trading conditions. The pound lost against the dollar but gained on the euro today. At 9am the pound was worth $1.5794 compared to $1.5861 at the previous close. Against the euro, the pound was worth €1.1777 compared to €1.1766 yesterday.