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Company News

London stocks hit by glum earnings, lower oil prices; M&S gains

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* FTSE 100 down 0.8%, FTSE 250 off 0.6%

Aug 18 (Reuters) - London’s FTSE 100 fell on Tuesday as lower oil prices and a clutch of lacklustre earnings reports sparked a round of profit-taking, while Marks & Spencer rose after announcing new job cuts.

The blue-chip FTSE 100 was down 0.8%, with losses in energy, financial and industrial stocks pulling the index back from what had so far been its best month since April.

Miner BHP Group was also among the biggest weights on the index, slipping 2.4% after reporting a 4% drop in annual profit that missed analysts’ estimates.

The mid-cap FTSE 250 shed 0.6%, led by a 10.8% plunge for outsourcer Capita Plc, as it posted a first-half loss due to a significant hit from the COVID-19 pandemic and said it would not generate sustainable cash flow for up to two years.

Retailer Marks & Spencer gained 1.6% after saying it plans to cut a further 7,000 jobs, dealing the latest blow to the country’s beleaguered retail sector from the COVID-19 crisis. (Reporting by Sagarika Jaisinghani in Bengaluru; editing by Uttaresh.V)

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