European stocks slow down

Friday, 12 November 2010
FashionUnited Top 100 Index closed at 1.174.21 on Thursday after initiating a light descense by losing 14 points. However, it remained in the front of the largest quoted international indexes, which as the rest of European stocks, ended Thursday’s session mostly lower as worries over Ireland’s financial health and the outcome of the Group of 20 meeting encouraged traders to lock in some recent gains. But most European equity markets headed lower. On other hand, concern now for China is that prices are getting out of control. Inflation came in much higher than expected and only recently the Bank of China surprised the markets by raising interest rates unexpectedly, so there’s every possibility they’ll do it again.

In America and after months of juggling with debts and misjudge allegation, US fashion chain American Apparel’s like-for-like sales plunged by 16 per cent over the third quarter to 30 September. Their total sales dropped ten per cent to $134.2m (£84m) as increases in production costs hit the figures, the company said in an official record.

American Apparel is working with its primary lender, Lion Capital, in a bid to breathe new life into the business. Last month, it amended the terms of the chain’s loan agreement to prevent it from breaking its banking covenants. Within the FashionUnited Top 100 Index, its shares dropped by 2.86%.

As cited in the Daily Mail and hoping to benefit from JJB Sports' (17pc lower at 8p) trading and debt woes, rivals JD Sports jumped 20p to 773.5p but finally lost 2.13% by the markets closure.

On the brightest side it was to be foud Foot Locker, as the best value of the day. The New York based athletic company was expected to present its 3rd quarter results by the ring of the bell on Thursday and investors showed their early support by rising its shares by 84.87%.

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