LONDON — European stock markets were down in mid-morning trading on Tuesday, with two major FTSE players — Tesco and Asos — losing ground after reporting disappointing news.
The FTSE 100 in London and the CAC 40 in Paris both fell 1 percent to 6,603.16 and 4,331.46, respectively. The DAX in Frankfurt was down 0.8 percent to 9,935.59, while the FTSE MIB in Milan fell 0.7 percent to 19,819.80.
The euro traded at $1.23, while the pound fetched $1.56 and the Swiss franc exchanged hands for $1.02 at 11:25 am CET.
Retail and luxury stocks were mostly down, led by Tesco, which dropped 10.7 percent to 1.67 pounds following yet another profit warning. The supermarket said that group trading profit for the financial year ending in February will be 1.4 billion pounds at most, down from analysts’ previous expectations of 1.94 billion pounds.
The troubled supermarket, which is under investigation for its accounting practices and is under fire from low-cost competitors such as Aldi and Lidl in Britain, blamed the downgrade on charges and investments. Earlier this fall, the supermarket announced that it had overstated its projected first half profits due to accounting errors.
Asos.com, meanwhile, saw its share price fall 4.9 percent to 22.63 pounds after the online retailer said the strong pound dented sales growth in the company’s fiscal first quarter ended Nov. 30. Its retail sales in the period were up 8 percent to 246.3 million pounds.
Asos’ growth was 1.3 percent below consensus and 1.7 percent below estimates made by Bernstein in London. Asos is not alone in feeling the pain of a powerful currency: Companies such as LVMH Moët Hennessy Louis Vuitton and Burberry have been taking hits from the strong euro and pound over the past 18 months.
Among the other stocks to lose ground mid-morning were supermarket J. Sainsbury, down 3.5 percent to 2.27 pounds; flash sales site MySale Group, 3.4 percent to 1.86 pounds; and Yoox Group, 2.7 percent to 18.66 euros.
Among the few stocks that rose were French Connection, 3.5 percent to 0.60 pounds; Boohoo.com, 1.1 percent to 0.46 pounds, and Gemfields, 1 percent 0.50 pounds.