London open: Burberry leads stocks lower

11th Jul 2012 08:46

- Burberry sinks after Q1 results- Sentiment dampened by US earnings- FOMC minutes eyesLondon's benchmark index sank in early trading on Wednesday, tracking losses in US and Asian markets overnight, with Burberry providing a drag after missing sales forecasts in its first quarter."A series of poor corporate earnings from the US yesterday have overshadowed latest efforts by EU finance ministers to shore up Spain and its toxic banking system," said market strategist Ishaq Siddiqi from ETX Capital before markets opened this morning.Eurozone finance ministers agreed to give Spain €30bn of the €100bn it needs to recapitalise its banks as early as the end of the month. The Eurogroup also announced that they would allow the country extra time to reach its deficit targets.Siddiqi said that the focus of today's markets will be on the minutes of the latest Federal Open Market Committee in the US which are due out this evening. "Last month, the Fed opted to expand 'Operation Twist', dashing the markets hopes for more quantitative easing. Today, we will get a chance to understand what went on behind the scenes at the Fed, and if the central bank will follow other major peers and turn aggressive on policies," Siddiqi said.FTSE 100: Burberry disappoints in Q1Luxury brand Burberry sank early on after underlying sales growth slowed down from 15% in the fourth quarter to 11% in the first quarter. Analysts were expecting a 13% increase. Total revenue in the three months to the end of June totalled £408m, up from £367m the year before.Chemicals group Johnson Matthey dropped after UBS downgraded the stock to 'neutral' while banking group Lloyds was suffering from a ratings cut by Liberum Capital to 'sell'.Inter-dealer broker ICAP fell after saying that profits were down in the first quarter and trading volumes would remain subdued for at least the next few months.Power systems group Rolls-Royce fell despite winning a $280m order from Avianca (part of the AviancaTaca group) for Trent 700 engines to power four Airbus A330 freighter aircraft. Pharmaceuticals giant GlaxoSmithKline was higher after test results suggested that its HIV treatment might be more effective than a competitor's.Royal Dutch Shell was lower after splashing out $74m to buy up the remaining shares of Norwegian liquid natural gas supplier Gasnor it does not already own. FTSE 250: Britvic hammered by recall and weatherSoft drinks group Britvic plummeted after saying the recall of its Robinsons Fruit Shoot and Fruit Shoot Hydro drinks could cost the company up to £25m. Added to this, poor weather conditions and weak consumer sentiment means the group now expects to deliver a full-year results at the bottom end of market expectations - before taking account of the impact of the recall. Pub chain JD Wetherspoon rose after announcing that it had been boosted by strong trading around the fortnight of the Jubilee celebrations and during the Euro 2012 championships.FTSE 100 - RisersARM Holdings (ARM) 488.90p +1.75%BT Group (BT.A) 219.10p +0.83%Aviva (AV.) 288.40p +0.70%Hammerson (HMSO) 451.00p +0.67%Land Securities Group (LAND) 766.50p +0.59%Capital Shopping Centres Group (CSCG) 324.70p +0.59%Schroders (SDR) 1,319.00p +0.53%ICAP (IAP) 312.50p +0.45%Vodafone Group (VOD) 182.45p +0.44%British Land Co (BLND) 518.00p +0.39%FTSE 100 - FallersBurberry Group (BRBY) 1,218.00p -5.14%Aggreko (AGK) 2,016.00p -3.17%Johnson Matthey (JMAT) 2,099.00p -3.14%Polymetal International (POLY) 854.00p -2.62%Weir Group (WEIR) 1,542.00p -2.34%InterContinental Hotels Group (IHG) 1,534.00p -1.86%Old Mutual (OML) 153.60p -1.85%Wolseley (WOS) 2,351.00p -1.71%IMI (IMI) 803.00p -1.71%GKN (GKN) 211.90p -1.67%FTSE 250 - RisersBumi (BUMI) 318.30p +3.34%BH Global Ltd. USD Shares (BHGU) 11.4 +2.61%Perform Group (PER) 430.00p +2.26%Daejan Holdings (DJAN) 2,807.00p +2.07%Spirit Pub Company (SPRT) 48.12p +1.85%BH Macro Ltd. EUR Shares (BHME) € 18.83 +1.62%Petra Diamonds Ltd.(DI) (PDL) 126.40p +1.61%Drax Group (DRX) 564.00p +1.44%Bankers Inv Trust (BNKR) 414.80p +1.39%Avocet Mining (AVM) 67.45p +1.35%FTSE 250 - FallersBritvic (BVIC) 254.80p -15.12%FirstGroup (FGP) 188.80p -7.63%Senior (SNR) 184.00p -5.11%Chemring Group (CHG) 277.70p -4.37%Yule Catto & Co (YULC) 129.50p -3.00%Kenmare Resources (KMR) 34.22p -2.92%Interserve (IRV) 327.90p -2.84%Renishaw (RSW) 1,350.00p -2.74%Bodycote (BOY) 334.50p -2.51%Balfour Beatty (BBY) 295.00p -2.32%BC