Ted Baker down in flat stock markets

Tuesday, 22 November 2011

FashionUnited Top 100 Index closed lower on Tuesday , hitting the 1,264.32 after losing 12 points, dragged by flat stock markets as the U.S. economy grew slower in the third quarter than estimated earlier, and the euro surrendered gains against the dollar after Spanish and Italian bond yields surged.

Wall Street's S&P 500 index remained below 1,200 points after data showed U.S. gross domestic product grew at a 2 percent annual rate in the third quarter, down from a previous estimate of 2.5 percent.

In the UK, Ted Baker was topping the losses, closing down by 2.19%, merely a week after announcing that “Christmas will be good,” as CEO of the company said in a phone interview. “It will be slightly better than last year” when heavy snow in Britain affected sales, he said. Ted Baker’s group revenue rose 7.8 percent in the 13 weeks to Nov. 12, the London-based company said in a statement today. UK consumer confidence dropped to a record low in October as Europe’s sovereign debt crisis and the unemployment outlook worsened, the Nationwide Building Society said last week.

As Europe's debt crisis raises the risk of a recession, companies in the region show no signs of slowing with earnings growth poised to top their U.S. rivals, published San Francisco Chronicle. Net income for companies in the Stoxx Europe 600 Index will rise by 10.5 percent in 2012 after increasing 11 percent this year, led by retailers including Burberry Group Plc, among others, according to more than 12,000 analyst estimates compiled by Bloomberg through last week. Nevertheless, the quintessentially British brand closed at down Tuesday, falling by 0.25%.

Finally, In India, it is believed that retail investors sell stocks in a falling market and buy them when prices peak. However, lately, they have done the opposite; probably having learnt lessons from the bull market of 2009-10. Data from the stock exchanges show that retail investors have been buyers in the market every time the Sensex declined, since January. Over the last eleven months, there have been ten occasions when the Sensex has tanked more than 300 points in a single session, as published at Hindu Business Line. Retail investors put in fresh money on a net basis on all those ten occasions.

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