Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

FTSE 100 fallers: why Burberry and WPP share prices slid this week?

Burberry’s share price was hit as it braced for a £100 million sales slump due to protests in Hong Kong, while WPP saw its stock slide after rival Publicis’ Q3 revenues come in below expectations.

FTSE 100 Source: Bloomberg

Global stocks rallied this week, but the FTSE 100 struggled to make significant gains due to a stronger pound stoked by renewed hopes of a Brexit deal following meetings between UK Prime Minister Boris Johnson and his Irish counterpart Leo Varadkar.

The FTSE 100 has broken through the 7200 level several times this week, only to run out of steam.

‘Dips towards 7100 have been buying opportunities, or at least have found support,’ Senior IG analyst Chris Beauchamp said. ‘But a firmly bullish view requires a move through 7230 to suggest that the range-bound period is over.’

Burberry stock slides as Hong Kong protests hit sales

British fashion retailer, Burberry, saw its share price fall this week after analysts announced the company is likely to suffer a £100 million sales hit as a result of ongoing protests in Hong Kong.

The luxury brand has 10 stores in Hong Kong, with the city responsible for generating around 8% of the company’s total sales. However, analysts at Jefferies said that the company could recoup half of its lost sales from other geographies.

‘The simple solution is don’t deliver stuff to Hong Kong anymore, there’s no point,’ Jefferies analyst Flavio Cereda told The Telegraph.

‘Or if you’re going to deliver 500 jackets, then deliver 50 instead and ship the rest of them off to mainland China.’

Burberry’s share price has fallen more than 3% since Jefferies comments, with the stock closing at £19.97 on Friday, down from £20.32 a share at the start of the week.

Overall, the stock has performed well this year, with it up more than 18% since the beginning of January and investors remain optimistic about its earnings growth with the company’s price-to-earnings ratio sitting at 24.76x

In its Q1 results, the luxury fashion brand’s CEO Marco Gobbetti said he was pleased with its performance considering the business is in the middle of a multi-year transition, with sales figures reflecting an encouraging reaction to its latest collections from new creative director Riccardo Tisci.

Burberry is set to release its half-year results on November 14.

WPP shares slump after Publicis sees revenues miss expectations

WPP shares fell more than 4% on Friday, driven by its French rival Publicis publishing weaker-than-expected Q3 revenues.

Earlier this week, WPP said that ‘there has been no significant change' to trading since its update in August.

WPP’s underlying net revenues in its first six months came in lower than that of last year, though the pace of the decline in North America – its most important market – slowed in Q2.

The company’s full-year guidance remains unchanged and the business maintained its half-year dividend at 22.7p a share.

WPP will unveil its Q3 results on October 25.

Trade Burberry, WPP and other UK stocks with an IG demo or live account


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Act on stock opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.