London close: Shares in the red on downbeat earnings, travel stocks rise

The London market tumbled back into negative territory on Monday after downbeat US earnings rekindled worries about the health of the global economy.

Having finished on a positive note on Friday after a chaotic week, the FTSE 100 Index closed the first session of this week 43.22 points down at 6267.07.

The Footsie hit new year-lows last week as weak German, US and Asian data sparked fears of another financial crisis.

The jitters re-emerged on Monday as US tech heavyweight IBM disappointed with a big earnings miss and profit warning before US markets opened.

There was also downbeat corporate news in Europe as German software maker SAP warned on 2014 profits as clients switched more quickly than expected from packaged software to technology delivered through the internet.

Back in the UK, airlines were flying higher after Liberum Capital highlighted UK-listed IAG, Ryanair and Easyjet as its top picks across the European airline sector.

There was also good news from several continents on the Ebola outbreak, with 48 people coming off a risk list in Texas, Nigeria being declared free of the epidemic and Spanish nurse Teresa Romero testing negative for the virus.

IAG lifted 11p to 361.4p, Easyjet climbed 22p to 1431p and Ryanair ascended €0.14 to €7.10. Other travel stocks were also in the money, with TUI Travel gaining 10.1p to 349.2p and cruise operator Carnival floating 32p higher to 2246p.

Beleaguered supermarket group Tesco, which posts first-half results on Thursday, advanced 4.75p to 179.3p as respected retail analyst Nick Bubb said it looked as though the group would play down any plans for a rights issue.

Pub group Spirit frothed up 8.75p to 99.75p on news of a higher offer from suitor Greene King, whose shares increased 7p to 775p.

But micro-chip maker ARM Holdings cooled 23.5p to 851.5p ahead of third quarter results on Tuesday.

Industrial heavyweights were also in the doldrums as the fallout of downbeat news from Rolls-Royce last week continued, with Rolls off 14p at 818p, aerospace engineer GKN subsiding 3.8p to 302p and IMI losing 25p to 1174p.

Market Movers
techMARK 2,612.04 -0.45%
FTSE 100 6,267.07 -0.68%
FTSE 250 14,755.97 -0.01%

FTSE 100 - Risers
InterContinental Hotels Group (IHG) 2,249.00p +4.31%
International Consolidated Airlines Group SA (CDI) (IAG) 361.40p +3.14%
TUI Travel (TT.) 349.20p +2.98%
Tesco (TSCO) 179.30p +2.72%
Associated British Foods (ABF) 2,635.00p +2.57%
Barclays (BARC) 218.35p +2.46%
Royal Bank of Scotland Group (RBS) 351.90p +2.03%
easyJet (EZJ) 1,431.00p +1.56%
Carnival (CCL) 2,246.00p +1.45%
Direct Line Insurance Group (DLG) 268.40p +1.44%

FTSE 100 - Fallers
BG Group (BG.) 1,024.50p -3.80%
Kingfisher (KGF) 290.00p -3.01%
Tullow Oil (TLW) 508.50p -2.96%
Petrofac Ltd. (PFC) 1,030.00p -2.83%
ARM Holdings (ARM) 851.50p -2.69%
Ashtead Group (AHT) 936.50p -2.55%
Royal Dutch Shell 'A' (RDSA) 2,099.00p -2.33%
Royal Dutch Shell 'B' (RDSB) 2,189.00p -2.30%
Travis Perkins (TPK) 1,584.00p -2.28%
IMI (IMI) 1,174.00p -2.09%

FTSE 250 - Risers
Ferrexpo (FXPO) 91.45p +5.78%
Bwin.party Digital Entertainment (BPTY) 92.90p +4.97%
Go-Ahead Group (GOG) 2,446.00p +3.91%
Bellway (BWY) 1,655.00p +2.86%
William Hill (WMH) 363.40p +2.80%
Bovis Homes Group (BVS) 816.00p +2.77%
Big Yellow Group (BYG) 521.00p +2.76%
LondonMetric Property (LMP) 139.20p +2.50%
Entertainment One Limited (ETO) 309.30p +2.28%
Foxtons Group (FOXT) 199.50p +2.26%

FTSE 250 - Fallers
Cairn Energy (CNE) 156.50p -3.99%
Premier Oil (PMO) 251.50p -3.57%
EnQuest (ENQ) 74.05p -3.52%
Just Eat (JE.) 267.30p -3.01%
Computacenter (CCC) 592.00p -2.95%
Amec (AMEC) 1,000.00p -2.91%
Evraz (EVR) 125.30p -2.64%
Debenhams (DEB) 58.75p -2.49%
Polymetal International (POLY) 470.40p -2.45%
Grafton Group Units (GFTU) 588.00p -2.33%