All trading involves risk. Losses can exceed deposits.

Equities slide towards close

The equity benchmark in London got the week off to a good start but drifted lower towards the close.

All trading involves risk. Losses can exceed deposits.

The reporting season is just kicking off on this side of the Atlantic, and traders initially bought stocks with the expectation that corporate results would be strong given the largely positive updates from US corporations.

Low fares airline Ryanair announced an increase in revenues but a decline in profits due to higher fuel costs. The company recently had its takeover attempt of Irish rival Aer Lingus knocked back by the competition authority. The share price is down 3%.

Property group Hammerson stated that its net asset value has increased by 1.7% to 551p. The stock is trading at 521p, flat on the day.

The banking sector is the worst performer, as traders sold banking stocks ahead of the results this week. Barclays, Lloyds Banking Group and Royal Bank of Scotland are announcing their results on Tuesday, Thursday and Friday respectively.

In the US, the Dow is down 60 points at 15,498, despite the US announcing better-than-expected pending home sales. Dealers sold their equity positions as it was a decline on the previous month.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.