The FTSE 100 experienced a decline on Thursday, continuing its downward trend from the previous day, primarily due to disappointing corporate updates that dampened investor confidence. Several major companies reported weaker-than-anticipated results, impacting overall market sentiment.
- Associated British Foods shares plummeted over 10% following a profit warning, reaching their lowest level since April.
- Primark’s challenging Christmas period, attributed to a difficult UK clothing market, weaker European sales, and a volatile US retail environment, drove the profit warning.
- Slower sales growth and increased markdowns in Primark are anticipated to negatively affect margins.
- Tesco shares fell approximately 5% after UK like-for-like sales growth slightly underperformed expectations, despite strong Christmas trading.
- UK house prices, as reported by Halifax, decreased by 0.6% in December.
The observed downturn indicates potential challenges for the index. Softened sales figures, profit warnings, and declining house prices suggest a cautious outlook. Companies with exposure to retail and the UK economy may experience further pressure.