Leading shares are heading lower on a combination of worries, from the standoff between Greece and the rest of the eurozone, the growing concerns about Ukraine, as well as week economic data from China.
The biggest faller in the FTSE 100 has been hit by more local concerns. Royal Mail is down 17.9p at 436.6p after JP Morgan Cazenove downgraded from overweight to neutral and cut its price target from 575p to 505p, citing worries about the outlook and increased competition in the delivery market.
Overall the FTSE 100 has fallen 37.14 points to 6800.01, ahead of crucial meetings between the eurozone and the new Greek government this week to try and resolve the country’s financial problems. On top of that there was the continuing conflict in Ukraine between the government and pro-Russia separatists, and on the economic front, China’s inflation hitting a five year low just days after poor trade data.
The Chinese data has seen mining shares slip back, with Anglo American down 14.5p at 1169.5p and Rio Tinto 22.5p lower at 3072.5p.
But reasonable market share data from Kantar Worldpanel has lifted Morrisons 5.9p to 183.9p and Tesco 5.5p to 238.9p. Tesco has also been the subject of speculation regarding possible disposals, including its Thai business and information specialist dunnhumby.
Marks & Spencer has added 11.7p to 487.2p after RBC moved from sector perform to outperform and lifted its price target from 500p to 550p.
Meanwhile paper maker Mondi issued an unexpected update, saying it expected full year earnings per share to increase by between 20% and 24%. Its shares have jumped 27p to £12.32.
Among the mid-caps Micro Focus International has added 68p to £11.70 after Citigroup moved from neutral to buy.
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