The UK benchmark index has fallen deep into the red this Monday, pressured by persisting trade war worries and caution ahead of the Federal Reserve’s meeting later this week. A hefty fall in Micro Focus (LON:MCRO) is also weighing on the shares after the FTSE 100 group warned on revenues and said that its chief executive is stepping down.
FTSE 100 plunges
As of 12:26 GMT, the FTSE 100 had given up 91.40 points to stand 1.28 percent lower at 7,072.74. Investor sentiment has been subdued today ahead of a Fed meeting later this week.
Micro Focus is also pressuring the Footsie, having plunged as much as 52.69 percent to 891.60p, after it warned on its full-year revenues and announced that its chief executive was stepping down with immediate effect. The blue-chip tech group has had problems related to assets it bought from Hewlett Packard Enterprise.
“Large acquisitions are inherently risky as they come with integration challenges. Micro Focus appears to have underestimated these challenges and is now suffering,” Russ Mould, investment director at AJ Bell, commented, as quoted by Reuters.
At the other end of the spectrum has been Hammerson (LON:HMSO), whose shares have spiked 23.63 percent to 540.40p, after the company disclosed that it had rejected a takeover proposal from France’s Klépierre. The proposal came as the blue-chip group looks to acquire smaller London-listed peer Intu Properties (LON:INTU).
Shares in Barclays (LON:BARC) have also been in demand after it emerged that activist investor Sherborne had taken up a five-percent stake in the group. The lender’s shares are currently 4.75 percent better off at 219.45p.
The FTSE 100 index was 1.29 percent down at 7,071.65 points as of 13:07 GMT on Monday, 19 March 2018.