Market Report: Worldwide worries weigh on blue chips

If you were one of the punters who asked recently if the benchmark index could manage to reach 6,000 again, then the answer is – not any time soon. After a lacklustre summer, traders had hoped the autumn could be better. But yesterday, the FTSE 100 posted its biggest one-day drop in almost a month, wiping out last week's gains.

The index sunk 85 points to 5,797.91, dragged down by renewed eurozone crisis concerns, weak US earnings and caution ahead of today's Chinese manufacturing index figures.

The only chink of light on the blue-chip index was Cambridge star ARM Holdings. The company which makes chip processors for a variety of gadgets, including Apple's iPhones and iPads, revealed its pre-tax profits had jumped 28 per cent to £68.1m for the three months to October. Its shares computed a 45.5p gain to 640p, taking it to the top of the leaderboard.

And ARM could be in for a further boost – it gets a royalty payment every time Apple sells a gizmo created with its technology, so last night's launch of the mini-iPad may help it higher.

Talking of microchip makers from Cambridge, investors in CSR were counting their chips after news that its deal to sell its mobile handset business to Samsung will bring a special payout their way.

If you are not already an investor, analysts reckon it is still a good time to invest. Liberum Capital kept its buy rating on the shares and issued a share price target of 400p. It thinks the group has "transformed after the sale of its handset business" and "no longer deserves to trade at a discount to peers".

The wireless technology specialist confirmed the completion of the sale to South Korea's Samsung in its third-quarter results. The deal leaves Samsung with a 4.9 per cent stake in the company. Details of the $285m (£178m) tender offer to shareholders will be confirmed next quarter.

CSR's profits soared to $32.2m, up from $24.3m in the same period last year but its shares lost 6.2p to 332.5p despite a spike earlier in the day.

The doom and gloom and the lacklustre performance of the markets meant traders had time for some gossip. But the only market chatter doing the rounds appeared to be vague speculation in the pharmaceutical sector that a purchase could be on the cards for AstraZeneca with rumours that rival GlaxoSmithKline might also be interested. But the chat failed to excite the share price and its shares lost 38p to 2,900p.

The only "real" news in the sector came in the shape of AstraZeneca's tie-up with US drug maker Ironwood to make irritable bowel syndrome drugs for China.

Anglo-Dutch oil group Shell warned yesterday that it won't be able to make its estimated production for two types of oil pumped from Nigeria, blaming attacks on its pipelines by thieves. Its shares slipped 30p to 2,172.5p.

Journalists and scandal go hand in hand. This time, phone-hacking allegations have knocked more than 10 per cent off the share price of the owner of the Daily Mirror.

A lawyer has lodged legal claims for four people – including former England football manager Sven-Goran Eriksson – accusing the group's newspapers of hacking into phones to get stories. As a result, Shares in Trinity Mirror lost 7.25p to 64.5p. The case is yet another problem for new chief executive Simon Fox.

On Monday, Investec's Ian Gordon said flog Royal Bank of Scotland shares: yesterday it was Lloyds Banking Group that displeased him. He points out that falling Dutch house prices are bad news for the bank. He gave it a share price target of 36p and claims Lloyds' "Dutch exposure is a drag on its (generally improving) bad debt story". Lloyds lost 0.52p to 40.3p.

Watchers of the luxury sector were spooked by another profit warning. This time, AIM-listed handbag brand Mulberry revealed profits won't be as high as hoped as its decision to go more upmarket has hit sales. The company's shares tumbled nearly 24 per cent, losing 314p to 1,006p.

Upmarket brand Burberry was hit by the news – and fears of the outcome from the Chinese manufacturing survey tomorrow – and it sank 38p to 1,134p. The sector will now be looking to Gucci and Stella McCartney-owner PPR's third-quarter results tomorrow for any further indications on the outlook for luxury.

Start your day with The Independent, sign up for daily news emails
ebooksA celebration of British elections
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Claims Administrator

£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...

Recruitment Genius: Senior SEO Executive

£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...

Recruitment Genius: Online Customer Service Administrator

£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...

Recruitment Genius: Digital Marketing Executive

£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...

Day In a Page

Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power
Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

The price to be paid for challenging the rule of extremists

A revolution now 'consuming its own children'
Welcome to the world of Megagames

Welcome to the world of Megagames

300 players take part in Watch the Skies! board game in London
'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

Charlotte Gainsbourg on 'Nymphomaniac'

Starring in one of the most explicit films ever
Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

Robert Fisk in Abu Dhabi

The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

Vince Cable exclusive interview

Charging fees for employment tribunals was 'a very bad move'
Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

Iwan Rheon is returning to his Welsh roots

Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
Russell Brand's interview with Ed Miliband has got everyone talking about The Trews

Everyone is talking about The Trews

Russell Brand's 'true news' videos attract millions of viewers. But today's 'Milibrand' interview introduced his resolutely amateurish style to a whole new crowd
Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

It's time for my close-up

Meet the man who films great whites for a living