afternoon market comment – 13/02/14

By
0 mins. to read

European shares snap a winning streak, dragged lower following a number of disappointing updates from blue-chip companies. Rolls-Royce and Tate & Lyle battled for the worse FTSE 100 decliner, with shares in RR dropping 16 percent after it emerged US and European spending cuts would halt profit growth in 2014. Tate & Lyle dropped 15 percent after the sweetener-maker warned on profits, blaming weak sales in developed markets. Shares in Nestle also dropped 2.1 percent after it released a warning that it may undershoot its long-term growth targets again this year due to weakening demand from emerging markets. 

A report from the US Commerce Department released today showed that retail sales fell by 0.4% last month. The figure, with many expecting a 0.3% increase adds to further negativity today with retail sales making up 2/3 of the US GDP. Unemployment Claims also performed marginally worse than expected with claims increasing 8,000 since last week. 

US futures are indicating a 100 point lower open as investors digest the latest economic releases and corporate earnings. Cisco Systems and Whole Foods dropped 4% and 9% during pre-market trading following a miss in earnings whilst Time Warner Cable was up 11% after Comcast Corp agreed to acquire the cable company for $45.2bn.

Take part in our poll

Of the stocks covered by Master Investor in the weekly Small Cap Round Up, which ones do you hold?


Comments (0)

Comments are closed.

YOUR FREE INVESTMENT MAG

Get real investment insights from some of the best minds in the business - with our free Master Investor Magazine.