British equities drop over 1%; Dr Martens, Superdry tumble (updated)

Superdry

16/04/2024 10:18

(For a Reuters live blog on U.S., UK and European stock
markets, click  LIVE/  or type LIVE/ in a news window)

        * 
      Dr Martens hits all-time low after flagging weak demand
    

        * 
      Superdry drops to record low, details restructuring plan
    

        * 
      FTSE 100, FTSE 250 down 1.5% 
    

  
 (Updated at 8:35 GMT)
    By Khushi Singh and Pranav Kashyap
       April 16 (Reuters) - London stocks dived on Tuesday,
with most sectors in the red, as traders pulled back
expectations of rapid U.S. rate cuts, while shares of Dr Martens
and Superdry tumbled on disappointing corporate updates. 
    The resource-heavy FTSE 100  .FTSE  and the mid-cap FTSE 250
 .FTMC  fell 1.5% each by 0835 GMT.
    While the FTSE 100 looked set for its biggest intraday
percentage drop in eight months, the FTSE 250 was on track for
the biggest decline in three months.
    Dr Martens  DOCS.L  slumped 31.3% to a record low after it
named a new CEO and flagged a challenging fiscal 2025 on weak
U.S. demand. The personal goods sector  .FTNMX402040  led
sectoral losses, falling 4.1% on the news.
    Superdry  SDRY.L  tumbled 18.8% after it launched a
turnaround plan that included an equity raise that would take
the firm private.
    Industrial Metal miners  .FTNMX551020  followed with a 2.9%
fall after prices of non-ferrous metals dropped on a stronger
U.S. dollar.  MET/L 
    The precious metal miners  .FTNMX551030  index was the only
outlier, rising 0.9% as concerns over rising geopolitical
tensions between Iran and Israel propped up demand for gold.
 GOL/ 
    Investors' expectations of a rate cut by the U.S. Federal
Reserve further inclined toward September after
hotter-than-expected retail sales data narrated a
higher-for-longer story. 
    Meanwhile, unemployment in the UK edged higher in February
and wages saw their weakest climb since mid-2022, bolstering
bets for Bank of England rate cuts in the near future.
    "The data has taken a real bite out of the FTSE 100," said
Danni Hewson, head of financial analysis at AJ Bell, as the
unemployment data "sort of signals that cracks have started to
show in the UK labour market." 
    British recruiters Hays  HAYS.L  and Robert Walters  RWA.L 
dropped 4.1% and 5.6%, respectively, following a drop in their
quarterly net fees, dragged by low client and candidate
confidence in major markets amid sluggish hiring conditions.

 (Reporting by Pranav Kashyap, Khushi Singh in Bengaluru;
Editing by Sherry Jacob-Phillips and Janane Venkatraman)
 ((Pranav.Kashyap@thomsonreuters.com;))