FTSE struggles to bounce back from global sell-off
Source - SMW
The FTSE 100 failed to fully shake off the global sell-off overseas as the blue-chip index dipped 8.6 points to 7,579 around midday.
Overnight, Wall Street struggled with a decline in healthcare companies on the threat of competition from Amazon, JP Morgan Chase and Berkshire Hathaway. The firms said on Tuesday they would create a new healthcare company that would cut costs for US employees.
The S&P 500 declined 1.1% to 2,822 and the Dow Jones tumbled 1.4% to 26,076.
Asian equities followed the US lower this morning, with the exception of Hong Kong's Hang Seng. Japan's Nikkei 225 took the biggest hit, down 0.8% at 23,098.
Brent crude oil slid 0.7% to $68.53 per barrel. Gold glittered at $1,342 per ounce and copper was unmoved at $3.18 per pound.
MID AND LARGE CAP RISERS AND FALLERS
Embattled support services specialist Capita (CPI) revealed a drastic transformation plan and suspended dividend payments until it generates 'sustainable' free cash flow. Investors were alarmed as the shares plummeted 41.1% to 204.7p.
Britvic (BVIC) disappointed the market following a fall in sales in France and its international markets. The Robinsons squash maker was marked 5% lower to 745.2p despite sales rising 3.3% to £337.2m in the quarter to 24 December.
Wizz Air (WIZZ) was down 2.3% at £34.93 after operating profit fell 5.6% to €14.6m in the last three months of 2017 on pressures from fuel costs and the weaker dollar.
Ultra Electronics (ULE) reported its acquisition of US firm Spartan might be pushed back following delays by the US Department of Justice who requested more information. Shares in the defence firm dimmed 2.5% to £14.85.
SSE (SSE) pleased the market with news that it expects to increase its dividend in line with inflation as it delivered a modest increase in earnings guidance. The stock was up 1.5% at £13.10.
Dairy Crest (DCG) experienced strong growth across its key brands, including its Cathedral City and Clover brands, helping its shares gain 4.5% to 585.5p.
SMALL CAP RISERS AND FALLERS
Real Good Food (RGD) slumped 11.1% to 20p after reporting it expects the outturn for 2017 to be an earnings loss of up to £3.5m. The company said its performance in the last few weeks of the year was 'materially below' its expectations.