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November 6th, 2014, 6:48 am | By trader | Published in LUNCH IS FOR WIMPS | Comments on this postComments Off

Britain’s blue-chip FTSE 100 index edged lower last week along with British American Tobacco knocking most of the points off the benchmark following its recent trade update.
According to the manufacturers of Pall Mall and Dunhill cigarettes, the trading environment still remains very challenging mainly because of pressure on global consumer disposable income and currency issues along with a slow economic recovery in western Europe.

Just about any company that has been operating from a global perspective specifically in emerging markets has been facing currency turbulence.

BAT represents premium products and people will often pay for that premium. When people themselves are the ones paying one thing one day and another the other way, hence in order to maintain revenues they have to reduce prices which is going to affect their profit later on.

BAT stock was down 4 % which made it the largest faller on a FTSE 100 down 0.2 % at 6,462.99 points by nearly 1017 GMT. It’s peer Imperial Tobacco was down by 0.7 % correspondingly.

Some analysts were vigilantly positive on the FTSE 100’s outlook following its decline of more than 10 % in the past 4 weeks before marginal recovery was due last week.
Many traders are presently discussing about the prospect of a year-end rally. That is possible although there are still some obstacles to beat. The index is still trading below the bottom of the pattern that has been positioned in place since the summer of 2012.

The near-term upside still appears to be realistic with its expectations at this point, yet the FTSE no longer appears oversold beyond the 6,400 level, hence the gains are more likely to be more hard-won.

The mid-cap FTSE 250, however, went up 0.5 % which was bolstered by a bullish update by gambling technology business Playtech and bid speculation surrounding specialty chemical maker Croda International.

Playtech soared 6.8 % following its confident remarks that it would exceed the present market expectations after a strong start to its fourth quarter which followed a 29 % rise in revenue in the earlier period.

Shares in Croda went up 4.2 % which added an 1.8 % gain last week which the Daily Mail and Daily Express newspapers attributed to discussions of an alleged 4 billion pound ($6.45 billion) standing offer for the said company.

On the downside, SuperGroup, the British company behind the Superdry fashion brand went down 4.3 % following the recent move to name the former Co-operative Group chairperson Euan Sutherlands as its new chief executive who later replaced the original founder Julian Dunkerton.

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