FTSE 100 closes 1.7% down

<p>The FTSE 100 closed 111 points down at 6,446.</p>

The FTSE 100 experienced a drop on Thursday (October 2nd) closing 111 down at 6,446.

It had been a day of mixed fortunes across the markets with budget airline Easyjet among the top performers. The company ended the day 5.25 per cent up at 1443p, a change of 72 points thanks to a boost in revenues. Easyjet reported a revision of its pre-tax profits, increasing to between £575 million and £580 million improving investor confidence.

Easyjet has benefited from the Air France pilot strike which saw the French airline cancel half of its flights during the two weeks of industrial action. The company reported lost revenue in the hundreds of millions before the strike was eventually ended on September 28th as it prepares for further talks.

The supermarket sector also saw a number of big names perform poorly throughout the day. Sainsbury's started brightly bouncing back from a disappointing trading statement on Wednesday where it reported a third successive quarter of falling sales but ultimately finished four per cent down. Morrisons and Tesco had similar fortunes closing 0.6 per cent down and 1.1 per cent down respectively.

Companies within the supermarket sector are facing increasing competition from discounters such as Aldi and Lidl. The low-cost grocery chains have been performing strongly in recent months gaining a bigger market share and reporting huge growth in profits.

It is in stark contrast to the more traditional names with Asda and Morrisons announcing redundancies in the past year while Tesco is being investigated after vastly overstating its profit forecast.

Elsewhere on the market, Ted Baker grew by 0.6 per cent following an increase in first-half profits while Domino's Pizza also recorded a one per cent rise after seeing underlying sales grow by 12.9 per cent in the 13 weeks to September 28th.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.