The FTSE is down 20 points in early trading this Thursday morning, this despite another positive close for US equities and some positive economic data coming out of China overnight.
It’s Burburry Group that is the FTSE’s worst performer this morning after announcing Q3 results and setting out the Group’s vision for the future. The share price has dropped 10% on the news.
“Investors are unconvinced by CEO Marco Gobbetti’s new cost-saving strategy and plan to push the company further into the risky luxury market.” suggested Spreadex analyst, Connor Campbell.
Meanwhile, Sainsbury’s interim results were broadly in-line with expectations. However, shareholders were none too impressed with the announcement of a dividend cut which saw the share price drop almost 2% in early trading. AstraZeneca’s third quarter revenues beat expectations and an upbeat forecast for next year saw the share price rise 2%.
However, it’s the Housebuilders that are the real drag on the FTSE with Persimmon, Barratt Developments and Taylor Wimpey all losing out as yesterday’s Royal Institution for Chartered Surveyors’ (Rics) residential market survey showed flat or falling housing sales volumes in October.
Over in the US, all three major US indices posted fresh record closing highs yesterday. This “despite the continued underperformance from the Financial sector as the Republican tax reform faces further hurdles, with Consumer Staples leading markets higher.” commented Accendo Markets analyst, Mike van Dulken. “The Tech-focused Nasdaq returned to its recent run of outperformance, while the Dow Jones closed just above breakeven as Merck and Wal-mart led risers.”