11th Oct 2018 08:50
LONDON (Alliance News) - The FTSE 100 slumped to a new six-month low at the open Thursday, following a sell off on Wall Street on Wednesday and in Asia overnight and amid some ex-dividend stocks.The FTSE 100 index was was down 1.1%, 79.05 points, at 7,066.69. The large cap index fell to an intraday low of 7,025.62 just after the open, its lowest level since April, before recovering slightly. The mid-cap FTSE 250 index was down 1.8%, or 340.00 points, at 18,898.16. The AIM All-Share index was down 2.2% at 972.78.The Cboe UK 100 was down 1.4% at 11,983.26, the Cboe UK 250 was down 1.8% at 17,160.92, and the Cboe UK Small Companies was down 0.2% at 11,771.97.In mainland Europe, the CAC 40 in Paris was down 1.2% while the DAX 30 in Frankfurt was down 0.9% early Thursday."The European open was a proper, old-fashioned bloodbath, reminiscent of the drastic sell-off seen back in February. Already on Wednesday investors had been fretting over the IMF's US-China trade war warnings and the related weakening of the yuan, alongside the unresolved budget battle between the EU and Italy," said Spreadex analyst Connor Campbell.On the London Stock Exchange, Mondi led a handful of blue-chip risers, up 1.3% after the paper and packaging firm said its third-quarter profit jumped after price rises, operational improvements and contributions from takeovers boosted results despite cost pressures.For the three months ended September, underlying earnings before interest, taxes, depreciation and amortisation grew 30% to EUR466 million from EUR359 million a year prior. Ebitda was also 4.3% higher than the EUR447 million the quarter immediately before.The Johannesburg and London-listed firm explained good sales at its fibre packaging unit helped like-for-like sales volumes rise in the period. Randgold Resources was up 0.8%, with the gold miner tracking spot gold prices higher.The precious metal was quoted at USD1,197.73 per ounce from USD1,188.56 at the London equities close Wednesday, and often rises during times of market turmoil. At the other end of the large-cap index, Hargreaves Lansdown was the worst blue-chip performer, down 6.2% after the fund supermarket said it made a "solid start" to its new financial year with assets under administration and revenue increasing in the first quarter.However, the stockbroker noted that the past quarter saw an "uncertain market environment" with weak investor sentiment, resulting in an industry-wide slowdown in net retail flows.Still, Hargreaves Lansdown said assets under administration grew by 2.7% to GBP94.1 billion at the end of the first three months of the financial year from GBP91.6 billion on June 30. Hargreaves's net revenue in the period increased 16% to GBP120.8 million from GBP104.1 million in the first quarter the previous year.Barratt Developments was down 6.1% after the stock went ex-dividend, meaning new buyers no longer qualify for the latest dividend payout. Elsewhere, International Consolidated Airlines Group was down 1.8% after the UK Competition & Markets Authority said it will probe a revenue sharing joint venture among the British Airways parent, US carrier American Airlines Group and Finland's Finnair.The watchdog has launched a competition investigation, applying EU and UK law, into the Atlantic joint business agreement among the airline operators. The Atlantic agreement established extensive cooperation among the airlines on the transatlantic routes including pricing, capacity and scheduling coordination as well as sharing of revenue.In response, IAG said that the Atlantic pact has resulted in significant benefits to millions of travellers like improved access to cheaper fares and easier journeys to more destinations. The agreement also has enhanced customers' travel choices.The Japanese Nikkei 225 index closed down 3.9%. In China, the Shanghai Composite closed down 5.2%, while the Hang Seng index in Hong Kong is down 3.8%.In the US on Wednesday, Wall Street ended sharply lower, with the Dow Jones Industrial Average down 3.2%, S&P 500 down 3.3% and Nasdaq Composite down 4.1%.US President Donald Trump attacked the Federal Reserve for raising interest rates on Wednesday, after US stock markets registered their biggest drop since February.Trump again criticized the Federal Reserve for raising interest rates. "I think the Fed is making a mistake...I think the Fed has gone crazy," Trump told reporters on Wednesday.Earlier this week, Trump said he does not like the pace at which the central bank is raising interest rates.The comments from Trump were after the Federal Reserve raised US interest rates by a quarter point to 2.00% to 2.25% last month, marking the third rate hike this year.The Fed's projections for future rates also pointed to one more increase in rates this year and three rate hikes next year.The pound was higher early Thursday, quoted at USD1.3224 compared to USD1.3193 at the London equities close Wednesday.In domestic political news, UK Prime Minister Theresa May is facing a fresh challenge to her Brexit plans from her Democratic Unionist Party allies, who are threatening to vote against the Budget if she breaks their red lines.The radical move is one of the options being considered by the DUP if attempts to nail down a deal with Brussels include any proposals that would leave Northern Ireland being treated differently to the rest of the UK, the Press Association understands.The DUP agreed a "confidence and supply" deal to support May after last year's general election and losing the party's support in the Commons would mean possible defeat on the budget at the end of October and a no-confidence vote.In Thursday's economic calendar there are Irish inflation data at 1100 BST. Accounts from the European Central Bank's last monetary policy meeting are released at 1230 BST.In the US, initial and continuing jobless claims are due at 1330 BST with inflation data released at the same time.Related Shares:
International AirlinesHargreaves LansdownBarratt DevelopmentsMondi