FTSE plummet continues into fourth consecutive day – Ted Baker suffers

FTSE plummet continues into fourth consecutive day – Ted Baker suffers

London´s Financial Times Stock Exchange (FTSE) 100 fell even further after a combination of negative impacts were realised on Thursday.

Brexit anxiety united with the approval of US trade tariffs on a list of European goods led to the index´s worst day for three and a half years.

FTSE´s most substantial one-day drop since before the 2016 Brexit vote was mainly affected by a more than 1 per cent fall in oil majors, Shell.

“With markets already looking vulnerable over concerns about a manufacturing recession starting to bleed into a slowdown in the services sector, the timing of the WTO ruling could not have come at a worse time,” CMC Markets analyst Michael Hewson said.

Luxury clothing retailer, Ted Baker, also suffered during this time and nosedived to a more than eight and a half year low after its second profit warning this year.

“Today’s first-half update from Ted Baker is a massive disappointment to those who felt that the company’s problems were behind it,” Hewson said.

The well-know clothing business has slumped by 35 per cent and its stocks have fallen by nearly two-thirds of its value. Further to this, the chief executive officer has said that the company is facing its most difficult trading conditions in decades.

The retail company claimed that its full-year profit would be damaged due to warmer September weather, high discounts in the industry and tepid consumer demand.

Ted Baker had previously admitted to having an “extremely difficult” start to the year after announcing a pre-tax loss of 23 million pounds, compared to a profit of 24.5 million pounds a year ago.

Ted Baker Chairman, David Bernstein said: “Trading conditions have been characterised by unprecedented and sustained levels of promotional activity across the sector with, in several cases, distressed discounting from brands and retailers and heightened competition.”

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