noon in London: stocks in the red amid inflation problems; AO World collapses



London stocks were firmly in the red at noon on Friday amid inflation concerns.

The FTSE 100 was down 1% to 7,014.54.

Neil Wilson, Head of Markets at Marché, said: “European stock markets fell sharply on the first trading day of the new quarter, drawing inspiration from a dismal finish on Wall Street. It’s a sea of ​​red for European stock markets although the initial heavy losses were reduced after the first hour of trading. “

Wilson pointed out that banks and cyclicals are bearing the brunt of the selloff, while utilities are the only sector in the green as defenses find an offer.

“I’ve long been warning about stagflation – now it’s at the heart of market liquidation. We can attribute it to concerns about persistent inflation, supply chain issues making things more expensive, labor shortages in key areas because no one wants to work, central banks are tightening to prevent inflation from becoming unanchored and slowing growth. This is a recalibration for macroeconomic outlook that appears less optimistic than they were in the first half of the year. ”

Concerns over China’s energy crisis also weighed on sentiment, after the country reportedly ordered state-owned companies to do everything in their power to secure supplies for the winter.

In the stock markets, online electrical appliance retailers AO World fell after saying adjusted basic profits for the year are expected to be between £ 35m and £ 50m, against expectations of £ 54m, and warned that a shortage of delivery drivers was making ravages. Curries stocks also fell sharply.

Dark trace was under the cosh after shareholders KKR Dark Aggregator LP, Summit DT CLN Holdings 4 and Balderton Capital SFI SLP sold 25 million shares of the company in a placement at 750p each.

Cooked meals maker Greencore lost ground despite the fact that adjusted annual profits would be at the high end of expectations as they worked to alleviate UK supply chain and workforce issues caused by Brexit and the Covid pandemic.

Counter the Trend, Education Editor Pearson rallied to a positive research note from Citi, who said the recent massive sell-off created “an attractive valuation opportunity”.

Euromoney rose after saying full-year adjusted pre-tax profit was “significantly ahead” of analysts’ expectations.

Chain of ads JD Wetherspoon was trading flat, slashing earlier losses after saying it plunged into its worst full-year loss as revenues plummeted after its pubs were forced to close due to Covid measures.

Market movers

FTSE 100 (UKX) 7,014.54 -1.01%
FTSE 250 (MCX) 22,858.40 -0.75%
techMARK (TASX) 4,576.37 -1.06%

FTSE 100 – Risers

Pearson (PSON) 733.40p 3.03%
National network (NG.) 899.40p 1.67%
Admiral Group (ADM) 3,151.00 p 1.38%
International Consolidated Airlines Group SA (CDI) (IAG) 180.54p 1.14%
Fresnillo (FRES) 789.20p 1.00%
ITV (ITV) 107.55p 0.89%
Relx plc (REL) 2 163.00p 0.75%
Ocado Group (OCDO) 1,671.50p 0.54%
ESS (ESS) 1,577.50p 0.41%
London Stock Exchange Group (LSEG) 7,476.00p 0.35%

FTSE 100 – Fallers

Lloyds Banking Group (LLOY) 44.94p -3.49%
B&M European Value Retail SA (DI) (BME) 571.80p -3.18%
JD Sports Fashion (JD.) 1,016.50p -3.05%
Evraz (EVR) 576.60p -2.99%
Next (NXT) 8.014.00p -2.41%
Smith & Neveu (SN.) 1,257.00 p -2.33%
Khaki (PSN) 2 608.00p -2.25%
Hikma Pharmaceuticals (HIK) 2,395.00 p -2.24%
Imperial Marks (IMB) 1,524.50p -2.18%
Scottish Mortgage Inv Trust (SMT) 1398.50p -2.07%

FTSE 250 – Lifts

Euromoney Institutional Investor (ERM) 1,040.00p 2.36%
Greencoat UK Wind (UKW) 132.40p 2.00%
GCP Infrastructure Investments Ltd (GCP) 102.40p 1.99%
IWG (IWG) 298.60p 1.91%
Drax Group (DRX) 490.20p 1.74%
Wizz Air Holdings (WIZZ) 5,100.00p 1.72%
Swiss Watches Group (WOSG) 962.00p 1.69%
Mitchells and Butlers (MAB) 240.60p 1.60%
Domino’s Pizza Group (DOM) 402.40p 1.56%
Assura (AGR) 72.55p 1.40%

FTSE 250 – Fallers

AO World (AO.) 169.70p -21.94%
Curries (CURY) 122.70p -8.09%
Cineworld Group (CINE) 74.60p -5.19%
Virgin Money United Kingdom (VMUK) 194.50p -4.84%
Dunelm Group (DNLM) 1,371.00p -3.59%
Port energy (HBR) 350.60p -3.42%
Greencore Group (CDI) (GNC) 136.40p -3.40%
Moonpig Group (MOON) 308.80p -3.20%
IP Group (IPO) 135.60p -3.14%
Darktrace (DARK) 794.50p -3.11%


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