BON.L Share News (BON)

LONDON (Alliance News) - Risk-off sentiment dominated on Tuesday after the US-China tariff dispute further deteriorated.While the foreign-earner heavy FTSE 100 ended lower, London's blue-chip index was spared the deeper losses of continental Europe and the US as the pound weakened.The FTSE 100 index closed down 0.4%, or 27.48 points, at 7,603.85. The FTSE 250 ended down 0.8%, or 163.82 points, at 20,835.78, and the AIM All-Share closed down 0.7%, or 8.09 points, at 1,092.68.The Cboe UK 100 ended down 0.3% at 12,891.35, the Cboe 250 closed down 0.8% at 19,051.47, and the Cboe Small Companies ended flat at 12,885.58.In European equities on Tuesday, the CAC 40 in Paris ended down 1.1%, while the DAX 30 in Frankfurt ended down 1.2%.Stocks in New York were similarly suffering at the London equities close on Tuesday, with the DJIA down 1.2%, the S&P 500 index down 0.6%, and the Nasdaq Composite down 0.8%. "Optimism about the global economy has also been tempered as the two strongest pillars bicker over trade tariffs, with equities still looking vulnerable to more downside after their recent gains," said IG chief market analyst Chris Beauchamp.US President Donald Trump on Monday said he would impose a 10% tariff on another USD200 billion worth of Chinese goods "if China refuses to change its practices".This comes after the US last week said it was imposing tariffs on USD50 billion worth of Chinese goods, with USD34 billion worth coming into force on July 6 and the rest later.If all the tariffs are applied, they will affect roughly half of all Chinese imports to the US. Last year, the US imported a total of USD505 billion worth of Chinese goods, while China's US imports were recorded at USD130 billion.IG's Beauchamp added: "We can expect the big international firms to continue to lead markets lower, a pattern seen as the Dax suffers heavily in Europe and US markets are lead lower by the likes of Boeing and Caterpillar. In London it is the miners that have done the damage, with the fall given added spice thanks to a 3% fall for Burberry, as investors weigh up the hit to Chinese spending."Blue-chip miners including Rio Tinto, Anglo American and Glencore closed down 2.9%, 2.6% and 1.9% respectively. Luxury fashion retailer Burberry lost 3.5%.However, the FTSE 100 on Tuesday, despite ending lower, managed to avoid suffering the same heavy losses seen in Europe and the US."The weaker pound is once again a factor in supporting the index, as Brexit uncertainties highlighted by the government's defeat in the House of Lords, continue to chip away at sterling demand," said Fiona Cincotta, senior market analyst at City Index.The House of Lords on Monday backed an amendment to the EU (Withdrawal) Bill, tabled by Viscount Hailsham, which would require the government to allow MPs to vote on how it would proceed in the absence of a Brexit deal by January 21 next year.MPs will now vote on whether to adopt the motion, which was brought in after pro-EU rebels led by former attorney general Dominic Grieve accused the government of reneging on measures they believed had been agreed to stave off a rebellion last week.The pound was quoted at USD1.3179 at the London equities close Tuesday, down compared to USD1.3246 at the close on Monday.Meanwhile, the euro stood at USD1.1579 at the European equities close Tuesday, down from USD1.1607 at the same time on Monday.European Central Bank President Mario Draghi reiterated on Tuesday that the bank will adopt a patient approach to tightening policy and stands ready to adjust all its policy tools when needed.The bank also signalled that the interest rates will remain at their present levels through the summer of 2019. "We will remain patient in determining the timing of the first rate rise and will take a gradual approach to adjusting policy thereafter," Draghi said in a speech at a central banking conference in Sintra, Portugal.The conference concludes on Wednesday, with US Federal Reserve Chairman Jerome Powell and Draghi speaking at 1430 BST. In commodities on Tuesday, Brent oil was quoted at USD74.71 a barrel at the London equities close Tuesday from USD74.40 late Monday.Gold was quoted at USD1,274.60 an ounce at the London equities close Tuesday against USD1,278.30 at the close on Monday.Back on the London Stock Exchange, Ashtead closed 5.3% lower despite posting double digit growth in profit and revenue for its recently ended financial year.Pretax profit climbed 21% to GBP927.3 million from GBP793.4 million, as revenue grew to GBP3.79 billion from GBP3.19 billion the prior year. Rental revenue rose by 20% to GBP3.41 billion from GBP2.90 billion. "With double digit growth all over the shop, these are good results from Ashtead - which might make the share price move look a bit odd. But with the shares up 46% in the last 12 months expectations were high," said Nicholas Hyett, equity analyst at Hargreaves Lansdown.Towards the top of the blue-chip index was Ferguson, closing 1.9% higher. Revenue in the company's third quarter rose 10% to USD5.08 billion, while trading profit was up 17% to USD356 million.Capita ended up 6.3% after selling its supply chain management services business for GBP160 million in cash as part of a previously announced non-core asset disposal programme and simplification strategy.Capita also separately confirmed that it has been selected as the winning tenderer for the Defence Fire and Rescue Project by the UK Ministry of Defence.Sinking 17%, McCarthy & Stone ended as the worst performer in the FTSE 250 as it released a profit warning and news of its chief executive's departure.The retirement housebuilder said it has experienced a "noticeable decline in reservation rates" since April, and now expects operating profit for the year ending August to be between GBP65 million and GBP80 million, down from GBP96 million the previous year. Separately, the company said Chief Executive Clive Fenton will retire at the end of August.Elsewhere on the Main Market, Taptica International finished 23% higher after the mobile advertising technology provider said 2018 earnings will be moderately ahead of market forecasts due to the continuation of positive sales momentum.Debenhams and Footasylum closed 12% and 52% lower respectively, following profit warnings from both the retailers on Tuesday.Trainer retailer Footasylum warned of modest earnings growth in its new financial year due to weak consumer sentiment and an expected rise in capital expenditure and property costs."While our core target market of the 16 to 24-year-old consumer has proved to be comparatively resilient in a downturn, our trading since the beginning of the new financial year has undoubtedly been impacted by the widely documented weak consumer sentiment on the high street," Chief Executive Clare Nesbitt said. Meanwhile, department store Debenhams lowered its profit expectations for its current financial year for a third time.Debenhams expects pretax profit for the financial year ending September 2 to be in the range of GBP35 million to GBP40 million, down from the market consensus of GBP50.3 million and GBP59.0 million the year before."In the absence of any reassurance from the company as to real progress, investors will continue to leave the store in droves, with the market consensus of the shares as a sell unfortunately very likely to remain in place," said Richard Hunter, head of markets at Interactive Investor.On a more positive retailing note, women's clothing retailer Bonmarche Holdings closed up 12% after its annual pretax profit grew 38% to GBP8.0 million from GBP5.8 million the year prior. This was despite revenue falling 2.2% to GBP186.0 million from GBP190.1 million the year before. In the UK corporate calendar on Wednesday there are full year results from blue chip housebuilder Berkeley Group, F&C Global Smaller Cos and structural steel company Severfield. In the economic events calendar is German producer prices at 0700 BST, South Africa inflation readings at 0900 BST and the UK CBI industrial trends survey at 1100 BST.