Reuters logo
Britain's FTSE edges down, hit by Dixons Carphone slump
December 14, 2016 / 10:20 AM / a year ago

Britain's FTSE edges down, hit by Dixons Carphone slump

(ADVISORY- Follow European and UK stock markets in real time on the Reuters Live Markets blog on Eikon, see cpurl://apps.cp./cms/?pageId=livemarkets)

* FTSE 100 down 0.2 pct ahead of Fed decision

* Dixons Carphone falls back after results

* UK data points to mixed economic picture

* Micro Focus top FTSE 100 riser

By Alistair Smout

LONDON, Dec 14 (Reuters) - Britain’s top share index dipped on Wednesday, dropping back from its highest close since October, as Dixons Carphone turned lower after results.

Britain’s FTSE 100 was down 13.16 points, or 0.2 percent, at 6,955.41. It edged down from 6,968.57, which had been its highest close since October 28.

Dixons Carphone was the top faller, down 5.8 percent after its results.

It had opened higher, after slightly beating estimates. However, the results provided little reason for analysts to raise estimates, and one trader flagged comments from the chairman that suppliers might raise prices as prompting the falls.

“The uncertainty is weighing, but also the fact that the pound has weakened significantly... is clearly increasing the costs of the company,” said Ipek Ozkardeskaya, senior market analyst at London Capital Group, who added that the share price reaction was nevertheless an overreaction

Traders said that the index was also in a tight range ahead of the U.S. Federal Reserve’s decision on interest rates, due after the market closes.

Miners were on the back foot as copper dropped ahead of the decision.

The FTSE 250 mid-cap index, which has higher domestic exposure, slightly underperformed the blue chips.

British households are currently feeling the least financial pressure since May 2015, buoyed by the economy’s solid performance since June’s Brexit vote, but they are increasingly worried about higher inflation next year, a survey showed on Wednesday.

In a similarly mixed update on the state of the UK economy, the number of people in work in Britain fell for first time in more than a year in the three months to October, official data showed on Wednesday, but wages rose.

“We remain pessimistic about both consumption and investment as the UK economy heads into 2017,” analysts at UBS said in a note.

“(We) reiterate our view that further monetary easing during the course of next year is likely to be required to ensure the loss of economic momentum is cushioned.”

Among FTSE 100 risers, Micro Focus rose 4 percent and was set for its biggest rise in 3 months after results beat expectations.

Reporting by Alistair Smout Editing by Jeremy Gaunt

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below