UK stocks : FTSE 100 down 1.3 pct
So there is downside risks to annual forecasts... so I want to remain underweight on equities, he added.
To date, 39 percent of UK companies have missed earnings forecasts in the quarterly results season, compared to 30 percent of U.S. ones, according to Thomson Reuters Stamine.
The FTSE's outlook also darkened from a technical viewpoint, with the close at the day's low and the break below its September trough of 5,634.88 points, which has marked the bottom of the 300 point range held since the summer.
I can't imagine the 50 percent retracement (of the June to September rally) offering too much of an obstacle before an extension to the downside to test the 61.8 percent (retracement) in the 5,498 area, said Jack Pollard, analyst at Sucden Financial.
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