Date: Wednesday 13 Jun 2012
1630: Today the World Bank warned that developing nations should prepare themselves for weak growth and "tougher times", saying there could be an extended period of "volatitlity in the global economy". Meanwhile, US retail sales took another hit, declining for a second month in a row in May, while elsewhere Eurozone factory output dropped 0.8% in April, a smaller fall than had been predicted. In UK companies, the majority of WPP shareholders voted against its CEO's remuneration package, while Sainsbury fell victim to high expectations after issuing its trading update. The FTSE closed up 10 points at 5,484.
1510: Shares of industrial engineering group IMI are now leading fallers on the Footsie, following weak demand indications from Swedish peer SKF. Man group is another big loser after analysts at Barclays lowered their price target on shares of the fund manager by 25%, to 105p. Acting as a backdrop, the latest US retail sales numbers out Stateside have come in moderately below forecasts. FTSE 100 down 34 to 5,440.
1402: Footsie has slipped into negative territory, as the US market looks set to open weaker. Spread betting quotes suggest the S and P 500 could open around 6 points lower, which would see two-fifths of yesterday's strong gains relinquished. WPP is lower ahead of its big vote on executive pay at its annual general meeting today in Dublin. The group said like-for-like revenues are up by four per cent in the first four months of the new financial year, while profits and operating margin are above budgeted expectations and ahead of last year. FTSE 100 is down 19 at 5,455.
1153: Footsie is treading water, with yesterday's strong showing on Wall Street countered by the continued rise in Spanish government bond yields to record levels. In the mid-cap space platinum miner Aquarius is in the doldrums again after it announced plans on Monday to mothball its Marikana mine. JD Sports, the fashion chain which sells sports-theme clobber to people who, in all probability, engage in very little sporting activity, is higher after a well-received trading update. Apart from previously flagged concerns about pressure on margins, the only fly in the ointment for JD Sports seems to be the recently acquired Black's Leisure, which is set to make an operating loss of 10 million quid this year, with another five million set aside for restructuring costs. FTSE 100 is down 1 at 5,472.
0949: Footsie is more or less back to square one after a bright start. For once there are no ex-div stocks dragging down Footsie's performance, and miners are not really influencing the index as much as they usually do. Sainsbury remains down in the dumps after its first quarter trading update failed to meet heady expectations, but broker Seymour Pierce has reiterated its recommendation to keep hold of the shares, so obviously it has not been unduly alarmed by the gap between delivery and expectations. FTSE 100 is down 3 at 5,470.
0825: Boosted by a strong rebound last night by Wall Street, London's leading stocks have opened mostly firmer, with banks and insurers to the fore, The trading update from Sainsbury failed to excite the market and the shares are in the red. FTSE 100 up 18 at 5,492.
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