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(Close): Airlines were the biggest losers among FTSE 100 shares, following a profit warning from Air France-KLM. | |
British Airways owner IAG closed down 7% while Easyjet shares fell almost 6%. | |
Air France-KLM said its profits this year could be up to 12% lower than previously estimated, mainly due to overcapacity on routes. Air France shares slumped almost 9% in Paris. | |
Overall the benchmark FTSE 100 index closed 85 points, or 1.2% lower at 6,738. | |
"The profit warning just before the busy summer months for the airlines sector has dampened investors' sentiment. | |
"It's a confirmation that, generally, the last three months had been difficult for the sector," said Accendo Markets' senior trader Tom Robertson. | |
Marks and Spencer shares slipped 1.3% after the retailer's latest trading update. | |
M&S reported another fall in underlying general merchandise sales, with trading hit by problems at its new website. | M&S reported another fall in underlying general merchandise sales, with trading hit by problems at its new website. |
Shares in housebuilders came under pressure, despite a strong trading update from Bovis Homes. | Shares in housebuilders came under pressure, despite a strong trading update from Bovis Homes. |
Bovis said it expected a "material" increase in first-half profits after it achieved 1,487 legal completions in the period, a record number and up 54% from a year earlier. | Bovis said it expected a "material" increase in first-half profits after it achieved 1,487 legal completions in the period, a record number and up 54% from a year earlier. |
However, shares in Bovis fell 1.5%, and elsewhere in the sector Barratt Developments dropped 1.2% and Persimmon was down nearly 2%. | However, shares in Bovis fell 1.5%, and elsewhere in the sector Barratt Developments dropped 1.2% and Persimmon was down nearly 2%. |
On the currency markets, the pound gave up early gains after weaker-than-expected manufacturing figures for May lowered expectations of a rate rise before the end of the year. | On the currency markets, the pound gave up early gains after weaker-than-expected manufacturing figures for May lowered expectations of a rate rise before the end of the year. |
Against the dollar the pound was little changed at $1.7260 and was also flat against the euro at 1.2590 euros. |