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FTSE 100 falls as supermarket shares lose ground | |
(6 months later) | |
(Close): A number of disappointing company results, combined with news of fines for banks following a probe into forex trading, pulled the market lower. | (Close): A number of disappointing company results, combined with news of fines for banks following a probe into forex trading, pulled the market lower. |
The benchmark FTSE 100 index closed down 16.36 points at 6611.04. | The benchmark FTSE 100 index closed down 16.36 points at 6611.04. |
Capita's shares fell 6.5% after the outsourcing group released its latest trading update. | Capita's shares fell 6.5% after the outsourcing group released its latest trading update. |
The company said organic sales were on track for growth of 8%, but analysts cited concerns about a possible slowdown in the rate of new contracts. | The company said organic sales were on track for growth of 8%, but analysts cited concerns about a possible slowdown in the rate of new contracts. |
Elsewhere, Sainsbury's fell 1.1% after the supermarket reported a half-year loss as it reined back plans for new stores. | Elsewhere, Sainsbury's fell 1.1% after the supermarket reported a half-year loss as it reined back plans for new stores. |
The retailer added it would invest £150m in price cuts, and said like-for-like sales in the sector were set to be negative "for the next few years". | The retailer added it would invest £150m in price cuts, and said like-for-like sales in the sector were set to be negative "for the next few years". |
Among Sainsbury's rivals, shares in Tesco fell 1.8% while Morrisons ended the day 0.6% lower. | Among Sainsbury's rivals, shares in Tesco fell 1.8% while Morrisons ended the day 0.6% lower. |
Bank shares fell after UK and US regulators fined five banks a combined £2.6bn for traders' attempted manipulation of foreign exchange rates. | Bank shares fell after UK and US regulators fined five banks a combined £2.6bn for traders' attempted manipulation of foreign exchange rates. |
HSBC and Royal Bank of Scotland were two of the six banks fined. Shares in HSBC fell 0.3% and RBS dropped 1%. | HSBC and Royal Bank of Scotland were two of the six banks fined. Shares in HSBC fell 0.3% and RBS dropped 1%. |
Shares in Barclays - which has not yet announced a settlement with regulators - fell 2.2%. | Shares in Barclays - which has not yet announced a settlement with regulators - fell 2.2%. |
G4S rose 2.1% after it reported rising revenues and the sale of a US business for $135m. | G4S rose 2.1% after it reported rising revenues and the sale of a US business for $135m. |
The security firm reported a 4.2% rise in revenues for the first nine months of the year. | The security firm reported a 4.2% rise in revenues for the first nine months of the year. |
On the currency markets, the pound fell as analysts pushed back expectations of the next UK rate rise following comments from the Bank of England. | On the currency markets, the pound fell as analysts pushed back expectations of the next UK rate rise following comments from the Bank of England. |
The Bank warned that inflation could fall below 1% in the next six months, and was not expected to reach the targeted rate of 2% for three years. | The Bank warned that inflation could fall below 1% in the next six months, and was not expected to reach the targeted rate of 2% for three years. |
The pound fell 0.65% against the dollar to $1.5817 and dropped 0.54% against the euro to €1.2691. | The pound fell 0.65% against the dollar to $1.5817 and dropped 0.54% against the euro to €1.2691. |