FTSE dips in April as euro debts sap confidence
BRITAIN’S top share index snapped a four-session winning streak yesterday and ended lower for the month of April, with Man Group and SSE falling on earnings worries as Europe’s debt crisis rumbles on.
The FTSE closed off 39.33 points, or 0.7 per cent lower at 5,737.78, and ended April down 0.5 per cent as concerns over Spain’s economy and political tensions in Europe heightened Eurozone debt concerns and offset a slightly better than expected start to the company earnings season.
Having hit a low of 5,576.37 in mid-April, the FTSE 100 found support at the trend line which started back in October but still closed lower for the second consecutive month. Traders said they saw little in the near-term to drive the index back towards 6,000.
Despite a decent start to the quarterly earnings season – of the companies that have reported earnings in the quarter, 58 per cent have either met or beaten expectations, according to data – Europe’s debt crisis continues to weigh on the outlook for corporate earnings.
Man Group fell 3.3 per cent ahead of the company’s first quarter trading update today as investors fear it may be hit by the latest bout of market jitters.
Lloyds and Royal Bank of Scotland, which will issue first quarter updates later this week, shed 0.6 per cent and 0.3 per cent respectively.