Household names bring FTSE below 6700

In mid-morning trading the FTSE 100 is down 75 points at 6698 as companies like Tate & Lyle and Tesco lead the market lower.

Tesco store external
Source: Bloomberg

Tesco is still the talk of the town for all the wrong reasons. The troubled supermarket giant has drafted in Alan Stewart as the new CFO; Mr Stewart was originally due to take up the post in December but desperate times call for desperate measures, as the stock is off 2.5%. 

Foods company Tate & Lyle is also far from flavour of the month after issuing a profit warning. Increased competition and supply chain issues were cited as reasons for the poor performance. 

Mothercare has announced a £100 million rights issue to help finance the mother of all comebacks, with the aim to reduce its presence on the high street and focus on the online business. 

Tougher tax laws introduced by the US, to prevent companies from dodging high taxation levels by locating their headquarters overseas, has hurt AstraZeneca and Shire Pharmaceutical.

Mining companies have breathed a sigh of relief, as the HSBC survey of Chinese manufacturing revealed a surprise jump in output in September. Traders were preparing themselves for underwhelming numbers, and judging by the small bounce in mineral extractors this could be the calm before the next wave of selling. 

In the US, we are calling the Dow Jones down 30 points at 17,142. US index futures are being dragged lower by sentiment in Europe.

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