LONDON MARKET CLOSE: Trade War Worries Resurface; Thomas Cook Sinks

LONDON (Alliance News) - The FTSE 100 on Tuesday pulled back from some of Monday's strong gains, with trade fears once again in the picture.It was a session to forget for tour operator Thomas Cook as shares sank 23%, dragging down blue-chip peer TUI in a negative read-across, after taking the decision to suspend its dividend in light of an annual fall in profit. The FTSE 100 index closed down 19.15 points, or 0.3%, at 7,016.85. The FTSE 250 ended down 58.23, or 0.3%, at 18,660.89, and the AIM All-Share closed down 6.16 points, or 0.7%, at 925.20.The Cboe UK 100 ended down 0.3% at 11,915.91, the Cboe UK 250 closed down 0.3% at 16,791.14, but the Cboe Small Companies ended up 0.2% at 11,415.70.In European equities on Tuesday, the CAC 40 in Paris ended down 0.2%, while the DAX 30 in Frankfurt ended down 0.4%.European markets ended lower amid fresh fears over US-China trade relations, after US President Donald Trump vowed to press ahead with hiking tariffs on Chinese imports.Trump told the Wall Street Journal on Monday it was "highly unlikely" he would hold off on plans to increase tariffs to 25% from the current 10% on USD200 billion of Chinese imports.In response, a Chinese Foreign Ministry spokesman told journalists on Tuesday that China was willing to resolve economic and trade issues through negotiations. Trump's comments come four days ahead of a planned meeting with Chinese President Xi Jinping at the G20 summit in Buenos Aires, Argentina.Trump's comments come ahead of the G20 summit later this week in Argentina, where the US president will be meeting with his Chinese counterpart. The pound was quoted at USD1.2747 at the London equities close Tuesday, down compared to USD1.2814 at the close on Monday.Sterling declined on Tuesday after Trump dealt a blow to UK Prime Minister Theresa May, calling her Brexit plan a "great deal" for the EU which could jeopardize the UK's ability to strike up trade agreements with the US. Trump told reporters: "As the deal stands she may not, they may not, be able to trade with the US. And, I don't think they want that at all. That would be a very big negative for the deal."In response, a Downing Street spokesman said: "The political declaration we have agreed with the EU is very clear we will have an independent trade policy so that the UK can sign trade deals with countries around the world - including with the US."Trump's comments come amid confirmation that MPs will vote on May's Brexit deal on December 11 after five days of debate. The timing gives May a fortnight to avert what threatens to be defeat at the hands of scores of Conservative rebels.Spreadex analyst Connor Campbell said: "Tomorrow could be another big day for the currency, as the Bank of England posts its analysis of the Brexit deal (alongside the latest bank stress tests); though, given the news that Carney and co have shifted the report from 7am to 4.30pm, the reaction likely will have to wait until Wednesday."The euro also lost ground against the dollar, quoted at USD1.1292 at the European equities close Tuesday, against USD1.1340 at the same time on Monday.Stocks in New York were mixed at the London equities close, with the DJIA down 0.2%, the S&P 500 index flat, and the Nasdaq Composite up 0.1%.Figures from the Conference Board showed US consumer confidence fell more than expected in November. The Conference Board said its consumer confidence index dropped to 135.7 in November after rising to 137.9 in October, with economists having pencilled in a more moderate dip to 136.5. The pullback by the headline index came as the expectations index slid to 111.0 in November from 115.1 in October, indicating a decline in consumer optimism about the short-term future.In commodities, Brent oil was quoted at USD60.77 a barrel at the London equities close Tuesday, flat from USD60.75 late Monday.Gold was quoted at USD1,213.36 an ounce at the London equities close Tuesday, down from USD1,222.97 at the close on Monday.One of the standout losers on Tuesday was tour operator Thomas Cook, sinking 23% as it suspended its dividend and warned on its annual profit.The FTSE 250 constituent said it expects to report underlying earnings before interest and taxes of GBP250 million for the year that ended in September, down GBP58 million, or 19%, year-on-year on a like-for-like basis.The result includes GBP28 million in legacy and non-recurring charges, comprising the write-down of historic hotel receivables, flight disruption costs, and company restructuring costs."The sustained heatwave restricted our ability to achieve the planned margins in the last quarter," explained Thomas Cook Chief Executive Peter Fankhauser.Given the reduction in earnings, the firm has decided to suspend its dividend. For the previous financial year, Thomas Cook paid out 0.6p per share.The update from Thomas Cook dented the share price of blue-chip peer TUI - which releases its own annual results in December - in a negative read-across. TUI shares closed down 4.6%.The best performer in the FTSE 100 on Tuesday was soft drinks bottler Coca-Cola HBC, gaining 4.6% after UBS double-upgraded the stock to Buy from Sell.Intertek closed up 1.9% after the product testing and certification company said it remains on track to deliver on its 2018 targets following revenue growth at constant rates in the first ten months.Revenue in the ten months to the end of October totalled GBP2.32 billion, up 0.5% year-on-year. On a constant currency basis, revenue rose by 4.8%.Investors gobbled up shares in baker Greggs, ending up 11%, after the sausage roll maker posted a rise in like-for-like sales and expected an increase in annual profit.The firm reported sales for the eight weeks to November 24 up 9.0%, with like-for-like shop sales up 4.5%. Greggs said it anticipates its pretax profit for 2018 to come in at "at least GBP86.0 million". A year ago profit was GBP81.8 million. UDG Healthcare shares shed 4.0% after the healthcare services provider reported a dramatic drop in profit, hit by exceptional charges on goodwill impairments, losses on disposals, and restructuring costs, but still gave investors a dividend hike.For the financial year ended September 30, the firm's pretax profit came in at just USD8.4 million, down from USD92.8 million a year prior. Meanwhile, UDG revenue increased by 8% to USD1.32 billion from USD1.22 billion a year prior. In the corporate calendar on Wednesday, plastic products maker RPC Group and housebuilder Telford Homes release interim results, travel firm On The Beach releases annual results and engineer Senior puts out a trading statement.In Wednesday's economic calendar, the BRC shop price index is out at 0001 GMT followed by Gfk consumer confidence at 0700 GMT and French third quarter GDP at 0745 GMT. Ireland's retail sales are at 1100 GMT.In the US, third quarter GDP is at 1330 GMT along with core personal consumption expenditures at the same time. At 1700 GMT, Federal Reserve Chair Jerome Powell speaks in New York. In the UK, the Bank of England will release its annual stress test results for major UK banks at 1630 GMT.