FTSE watch: FTSE heads south as post-trade talk optimism flounders

The FTSE 100 has slumped this afternoon as new-found confidence following trade talks dwindles.

FTSE watch: FTSE heads south as post-trade talk optimism flounders

Reuters reported David Madden, market analyst at CMC markets UK, as saying: “There is still a little optimism doing the rounds in light of the US Mexico trade deal, but investors haven’t been given another reason to buy into the market.”

Citigroup raise Centrica shares to buy

In other news, Citigroup have raised the target for Centrica shares to ‘buy’ this morning from its previous neutral rating, with a target price of 160 pence from its previous target of 145 pence. The rise follows the news that Centrica subsidiary British Gas has had to pay out GBP 2.65 million in compensation after    OFGEM concluded that it had overcharged customers who were switching providers and imposed exit fees incorrectly.

Ofgem’s  Anthony Pygram said: “British Gas failed it’s customers who were coming to the end of their fixed contracts and switched supplier by unfairly penalising them and applying charges in error.”

Centrica’s share price does not appear to have been troubled by the revelations, currently outperforming the blue chip index, up 0.95 pence ( 0.67%) to  142.90 pence as of BST 12:14 compared with the FTSE which is currently trading at 7577.3p, down 0.52 per cent (39.55 pence)  as of BST 11.55.

Shop Price Index shows first rise in five years

The Shop Price Index which was released first thing this morning has reflected the impact of this summer’s ‘heatwave’ on food prices, Hargreaves and Lansdown have reported. The figures show that overall prices rose 0.1 per cent in August. It is the first time since April 2013 that prices have entered ‘inflationary territory’, with food prices inflating by 1.9 per cent during August. It is difficult to see what the long term effect will be but there was a noticeable underperformance by Tesco shares during the morning’s trade.

 Tesco share price drop

As of BST 09.54, Tesco PLC (TSCO:LON) has dropped by 1.86 per cent to 253.40 pence, having previously closed at 258.20 pence in a significantly bigger drop this morning than the benchmark index which is currently trading at 7577.3), down 0.52 per cent (39.55 pence)  as of BST 11.55

Aston Martin one to watch

 Aston Martin has hinted that a statement of intent to float the prestigious car company on the London Stock Exchange could be made as soon as the autumn, with the possibility that it could be declared as early as next week, according to Sky News. The offering will see the sale of approximately GBP1 billion by current investors and the company is seeking a valuation in the region ofGBP4billion to GBP5 billion, as reported by Alliance News.

Prestigious comparisons

Currently, the only other  car maker on the FTSE 100 is Rolls Royce (LON:RR) which is currently trading at     . Investors will be interested to see how Aston Martin matches up to its rival when the IPO is eventually made. It is thought that the IPO will include an offer to Aston Martin customers along with an employee share scheme.

Top Equities Brokers

0 Brokers added for comparison:
Clear all