Markets on Hold for Eurozone Signals

Markets were once again dominated by the machinations of policymakers in the Eurozone. Editors 28 September, 2011 | 5:33PM
Facebook Twitter LinkedIn

The failure of the Eurozone to reach agreement on another bailout held back sentiment. On the other hand, the news that there would further meetings in Athens later this week suggested a deal may yet be forged and equity markets reflected the push and pull of competing views.

The FTSE 100 vacillated for much of the day, moving briefly ahead at one point only to close 1.44% lower at 5,218. European markets were stronger, but the CAC 40 and Dax both gave up some of yesterday's strong gains. Asian markets were weak with the Hang Seng down 0.66% at 18,011. Only the US markets were up on the day.

Smith’s Group was one of the day’s big winners as it announced a rise in sales of 3% for the full year. Headline operating profits were up 5% after the group’s restructuring programme produced savings of around £15m during the 12 months.

Property groups also had a strong day’s trading, reversing a recent run of weakness for the sector. Capital Shopping Centres Group and Savills were among the day’s strongest gainers.

Man Group was the day’s biggest faller on news that the hedge fund group had seen net capital outflows of $2.6bn in the second quarter on the back of recent market volatility. The group said that it expected investor appetite to be weak for the rest of the year. The shares dropped 24.9% to 180p.

Shares in Domino’s Pizza also suffered after sales for the 13 weeks to 25 September came in lower than expected. The company had been one of the recession’s success stories, but brokers commented that the current valuation was ambitious if its growth rate was slowing. The shares were down 9.9% to 458.1p.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

About Author Editors  analyse and report on shares, funds, market developments and good investing practice for individual investors and their advisers in the UK.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures