UPDATE 2-Fresh global growth worries drag on FTSE 100; lift-off for easyJet

By Kitco News / January 22, 2019 / www.kitco.com / Article Link


* FTSE 100 down 1 pct; FTSE 250 down 0.4 pct
* UBS results weighs on financials
* Oil majors, miners among major blue-chip drags
* easyJet climbs to outperform main index
* Mid-cap IG Group sinks after trading update
* Pets at Home posts best day ever (Adds company news items, analyst comment, updates to closingprices)By Shashwat AwasthiJan 22 (Reuters) - Britain's FTSE 100 posted its worst dayin nearly a month on Tuesday as renewed global economic slowdownworries sparked a sell-off across the U.S., Asian and Europeanmarkets and a stronger pound weighed, while easyJet surgedfollowing its results.The blue-chip bourse fell 1 percent and the FTSE 250 closed down 0.4 percent.The session's downbeat tone was set after China warned thatfalling factory orders pointed to a further drop in activity incoming months and more job-shedding in the country, a day afterreporting its lowest annual economic growth since 1990.Adding to the gloom, the International Monetary Fund trimmedits global growth forecasts and a survey showed increasingpessimism among business chiefs as trade tensions loomed. The exporter-heavy index, which makes the lion's share ofits income overseas, was also hit by a stronger sterling afterbetter-than-expected UK employment data. The jobs data provided a glimmer of hope for the UK economyeven as uncertainty over the nation's divorce from the EuropeanUnion grows."The morning's 10-year high wage growth reading was the maincatalyst for the (sterling) growth, though the ongoing hopesthat the UK will avoid a 'no-deal' Brexit are presumably playingtheir part as well," said Spreadex analyst Connor Campbell.Britain's opposition Labour Party put forward an amendmentto force the government to give parliament time to consider andvote on options to prevent a 'no deal' Brexit after PrimeMinister Theresa May had set out her plans on Monday. OIL, MINERS, BANKS LOSE BIGThe generally sour mood weighed on crude and metal priceswith oil and miners the worst FTSE 100performers, down 2.6 and 1.9 percent respectively.BHP'sweak outlook for iron ore outputpushed its shares down 2 percent.Shell slipped 2.5 percent and was the main drag onthe FTSE 100, after Morgan Stanley downgraded the stock to"underweight" and highlighted worries about the oil major'spledge for share buybacks, dividends and debt reduction. Banks fell 1 percent as weak results fromSwitzerland's UBS deepened concerns about the painacross the sector from low interest rates and rising politicaluncertainty.However, easyJet climbed 6.3 percent, its best dayin more than four years, as investors cheered the budget airlinemaintaining its full-year outlook even after counting the costof the drone disruption at Gatwick airport in December. "The drone disruption at Gatwick in December means theseresults aren't quite what easyJet was hoping for at the start ofthe year, but it hasn't blown things too far off course," saidHargreaves Lansdown analyst Nicholas Hyett.Ocado rose 3.3 percent while Sainsbury's ,which is looking to buy Walmart's Asda in a 7.3 billionpound deal, added 1.4 percent after Jefferies said Walmart'sexit from the UK would have positive implications for grocers. Among mid-caps, online trading platform IG Group slumped 9.5 percent as a regulatory clampdown led to a 17percent fall in its first-half profit. Fertiliser maker Sirius Minerals slipped 7.1 percentafter modifying its debt plans, while temporary power providerAggreko shed 5 percent after a Barclays downgrade.Dixons Carphone , which hit near decade lows earlierthis month amid worries about the poor state of the UK highstreet, jumped 3.9 percent on signs that its turnaround plan wasprogressing. Pets at Home surged 17 percent, its best day onrecord, on higher quarterly revenue due to a greater demand forits pet products and grooming services. (Reporting by Shashwat Awasthi and Muvija M in Bengaluru;editing by Josephine Mason, Ed Osmond and Toby Davis)

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