LONDON MARKET CLOSE: FTSE Struggles As Wall Street Slides; Ocado Rises

LONDON (Alliance News) - It was a sluggish start to the new week for the FTSE 100 on Monday, with losses gathering pace in the afternoon as US stocks opened on a downbeat note following disappointing earnings from industrial giant Caterpillar. The pound, meanwhile, was soft ahead of what is set be a dramatic day in parliament on Tuesday as MPs vote on various amendments to UK Prime Minister Theresa May's Brexit 'Plan B' in the House of Commons.The FTSE 100 index closed down 62.12 points, or 0.9%, at 6,747.10. The FTSE 250 ended down 108.90 points, or 0.6%, at 18,534.68, and the AIM All-Share closed just 0.18 of a point lower at 911.64.The Cboe UK 100 ended down 0.9% at 11,464.39, the Cboe UK 250 closed down 0.5% at 16,561.37, but the Cboe Small Companies ended up 0.1% at 11,209.99."The FTSE drifted lower across Monday's session, with losses accelerating amid a softer open on Wall Street. Concerns over a slowdown down in China overshadowed the end of the US government shutdown putting the UK index in line for its fifth straight negative close," said Fiona Cincotta, senior market analyst at City Index. In European equities on Monday, the CAC 40 in Paris ended down 0.8%, while the DAX 30 in Frankfurt ended down 0.6%.The euro stood at USD1.1437 at the European equities close Monday, against USD1.1409 at the same time on Friday.Stocks in New York were sharply lower at the London equities close, with the Dow Jones down 1.3%, the S&P 500 index down 1.1%, and the Nasdaq Composite down 1.3%.The week ahead is a busy one for US earnings, with the likes of iPhone maker Apple reporting on Tuesday, social media network Facebook on Wednesday and online retail giant Amazon on Thursday."Bellwether Caterpillar started the ball rolling, reporting earnings that sent a chill through the market. The industrial giant provided evidence of just how the economic slowdown in China is impacting on industrial firms," said City Index's Cincotta.Shares in the construction machinery firm slumped 8.5% in New York after the Dow Jones constituent missed analyst expectations. Adjusted profit per share for the fourth quarter of 2018 was USD2.55, below expectations for USD2.99.Sales and revenues for the fourth quarter of 2018 were USD14.34 billion, compared with USD12.90 billion in the fourth quarter of 2017, an 11% increase. Analysts expected revenue of USD14.33 billion for the quarter.Oil majors were among those dragging down the UK's headline stock index, with BP closing down 2.4% while Royal Dutch Shell 'A' shares shed 1.7% and 'B' shares 1.8%.Both companies were tracking the price of oil lower. Brent was quoted at USD59.66 a barrel at the London equities close Monday from USD61.34 late Friday."Oil is in the red as concerns about oversupply and worries about weaker demand have hurt the energy. On Friday, the Baker Hughes rig count report showed the number of active rigs in the US jumped by 10. There are also concerns about the state of the China economy, and its trade dispute with the US is a factor too," said David Madden, market analyst at CMC Markets.It was a better session for precious metal gold, which hit a fresh seven-month high of USD1,304.22 amid Monday's risk-off attitude. Gold was quoted at USD1,302.89 an ounce at the London equities close Monday against USD1,299.50 at the close on Friday.Back in the FTSE 100, Micro Focus International declined 2.2% after Goldman Sachs cut the software company to Neutral from Buy.Ocado ended as one of the gainers, up 2.1% on a report that Marks & Spencer is looking to launch a GBP1 billion food delivery service using the online grocer's technology.Ocado vans have been delivering Waitrose groceries under a contract which is due to expire in 2020. However, Waitrose now has its own delivery operations, and the Daily Mail reported on Sunday that M&S is mulling buying the Waitrose part of the Ocado business and replacing it with its own products. Shares in M&S closed just marginally higher on the news, up 0.1%.TI Fluid Systems closed among the FTSE 250 gainers, up 2.8% after it said constant currency annual revenue growth should exceed growth in global light vehicle production by around 3%.The company makes automotive fluid storage, carrying and delivery systems for light vehicles.TI Fluid's adjusted earnings before interest and tax margin is set to be "broadly" in line year-on-year at 11%. These results are in line with expectations as stated in November, and TI Fluid said it remains confident it can keep outperforming the light vehicle market.The company also said Chief Financial Officer Timothy Knutson will be leaving. Knutson will stay in his role until a replacement is found, which is expected to be done by the end of 2019.Dixons Carphone climbed 1.5% after Morgan Stanley raised the stock to Overweight from Neutral, believing shares in the electricals retailer look "very oversold".IG Group shed 5.0% as Liberum resumed the online trading platform with a Hold rating.Elsewhere on the Main Market, troubled airline Flybe advanced 22% to 4.14 pence after confirming a shareholder is trying to oust Chair Simon Laffin amid the company's takeover.Flybe made the statement in response to a report by Sky News on Saturday that Flybe's largest shareholder Hosking Partners wants to remove Laffin.Flybe confirmed Hosking has demanded a general meeting to vote on Laffin's removal and also on the appointment of Eric Kohn to the board to investigate Flybe's sales process."The board reaffirms it has acted at all times in the interests of its shareholders and all its stakeholders, through an extremely difficult and challenging period," said Flybe.Earlier in January, Flybe agreed to a 1 pence per share takeover offer from Connect Airways Ltd, a joint venture among Stobart Group, Virgin Atlantic, and DLP Holdings. This valued Flybe at GBP2.2 million, compared to an approximate market capitalisation at the time of GBP35.5 million based on a share price of 16.38p.Stobart shares closed down 1.4% at 159.20p. In the UK corporate calendar on Tuesday, fund supermarket Hargreaves Lansdown releases half-year results, as does Imperial Leather soap maker PZ Cussons. Postal operator Royal Mail releases a trading statement alongside food-to-go maker Greencore Group, while there are annual results from housebuilder Crest Nicholson.In Tuesday's economic calendar, Irish consumer confidence is at 0001 GMT followed by consumer confidence for France at 0745 GMT. The US Redbook index is at 1355 GMT followed by the S&P/Case-Shiller home price index at 1400 GMT and consumer confidence at 1500 GMT.In the UK, parliament faces a "Super Tuesday" Brexit showdown in the Commons as various factions compete to stamp their mark on the UK's EU withdrawal agenda.With parliamentary tradition upended by the battle for control of Brexit, what would normally have been just a bland neutral motion by the government on the prime minister's policy stance now threatens to take on a life of its own.As a result of a previous rebellion, MPs are able to table amendments to the motion, with the handful selected by Speaker John Bercow set to get voted on and potentially alter the course of the scheduled EU exit.Bercow is expected to choose up to half a dozen of the myriad of amendments put down using a selection process which is believed to include taking into account the backing each one has amassed and the likelihood of it passing.The pound was quoted at USD1.3161 at the London equities close Monday, soft compared to USD1.3173 at the close on Friday.