Markets: Aggreko losing power on US news

TEMPORARY power provider Aggreko posted a second day of hefty losses as traders continued to digest negative news from one of the Glasgow-based firm’s American suppliers.

Engine-maker Cummins reduced its revenue forecasts for the year ahead, blaming a drop in demand. Aggreko tumbled 3.7 per cent or 74p to close at 1,919p, having lost 4 per cent during Wednesday’s session following Cummin’s announcement.

The engine company’s dismal predictions had also affected specialist parts maker Johnson Matthey, which builds catalytic converters for cars, on Wednesday. But Matthey recovered some of its lost ground yesterday, closing up 17p at 2,120p.

The FTSE 100 index was left in the red after the minutes from the Federal Reserve’s latest rate-setting meeting showed further emergency economic stimulus is unlikely in the short term. The Footise fell 56.23 points or 1 per cent to close at 5,608.25.

Miners bore the brunt of the sell-off with Antofagasta down 4 per cent at 1,040p, Eurasian 4.2 per cent lower at 393.6p and Rio Tinto falling 3.5 per cent at 2,926p as traders priced in bad news ahead of today’s economic growth figures for China.

A trio of risers stood out in the sea of red. Media buyer Aegis was the star performer – shooting up 45 per cent or 73.1p to 235.3p – after a takeover bid by a Japanese peer took the City by surprise.

NEW YORK: Wall Street declined last night, hit by more warnings in the technology sector, but a rally in Procter & Gamble helped the blue-chip Dow cut its losses.

The Dow Jones industrial average slipped 31.26 points, or 0.25 per cent, to end at 12,573.27 while the broader Standard & Poor’s 500 Index declined 6.69 points, or 0.50 per cent, to finish at 1,334.76. The Nasdaq Composite Index dropped 21.79 points, or 0.75 pecent, to close at 2,866.19.