20th Oct 2014 09:54
LONDON (Alliance News) - Shares are trading lower in London Monday, with equity indices in Europe also lower, as investors remain nervy after last week's volatile trading that saw indices across the world plunge and then make a dramatic recovery of almost all the losses.
The gold price is higher, reflecting the nerves, as safe-haven assets remain popular.
The FTSE 100 trades down 0.6% to 6,270.91, and the FTSE 250 trades down 0.1% to 14,735.86. The AIM All-share index is outperforming, trading up 0.4% to 691.65. The indices have again been volatile, though not to the extent of last week, with the FTSE 100 opening lower, moving briefly into the black, and then heading lower again.
In Europe, the CAC 40 in Paris trades down 0.4% and the DAX in Frankfurt trades 0.7% lower, but US stock futures are currently indicating that the DJIA, S&P 500 and Nasdaq Composite will all open up 0.3%.
Gold remains in demand, and is trading at USD120.91 an ounce.
Tesco leads the FTSE 100 gainers, up 2.4%. The investigation into the company's GBP250 million profit overstatement has found evidence of a cover-up as the commercial team at the company struggled to meet targets in the final months of the tenure of former chief executive Philip Clarke, The Sunday Times reported. The company is expected to say when it posts half-year results on Thursday that the review found patterns of "inappropriate" behaviour by staff, but that it will not have to restate its results for previous years, the paper said.
"As further revelations come to light over the inner workings of Tesco, a greater belief that the management now have a firm handle on things has enabled the share price to stage a mild rally on Monday morning. The UK food retailer will, however, remain under close market scrutiny until the delayed quarterly figures are finally published," says IG market analyst Alastair McCaig.
Shire shares are trading down 0.7% after the Irish drugmaker said it had started an immediate search for a new chief financial officer, after James Bowling, who was interim CFO, decided to leave to become CFO Of Severn Trent from the end of the first quarter of 2015.
In a separate statement, water company Severn Trent confirmed that Bowling will be joining, after current CFO Mike McKeon gave notice that he has decided to retire with effect from spring 2015. McKeon will be staying in post to ensure an orderly handover, it added. Severn shares trade down 0.1%.
Afren is one of the best performing stocks in the FTSE 250, gaining 1.8%. The oil and gas producer is subject of increasing speculation that it could become the target of a takeover bid after filings revealed a company founded by a former Nigerian general has amassed a significant shareholding in the business, The Daily Telegraph reported on Saturday.
The company outperforms the rest of its sector, with the FTSE 350 oil and gas producers index falling 1.7% on the day, the second-worst performing sector index. The oil price is down again.
The eurozone current account surplus declined in August due to a notable decrease in trade in services, data from the European Central Bank showed Monday. The current account surplus fell to a seasonally adjusted EUR18.9 billion from EUR21.6 billion in July. The surplus on trade in goods rose to EUR15.3 billion from EUR13.5 billion, while the surplus on services declined to EUR7.8 billion from EUR13.3 billion in July.
By Neil Thakrar; [email protected]
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TescoShireSevern TrentAFR.L