Supermarkets drag FTSE lower on price war fears

Anna Fedorova
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Supermarkets are weighing on the FTSE 100 index today as worries escalate over price wars between the UK's leading food stores.

Tesco's shares were off 2.5% at 399p by 1:30pm, while Sainsbury's was down 3.1% at 395p, and WM Morrison was 2.9% lighter. The stocks were affected after a number of brokers issued negative forecasts for Tesco - the UK's biggest retailer - ahead of its third quarter results later this week. HSBC has cut its rating from neutral to underweight and reduced its earnings per share forecasts, saying the supermarket is in a weaker position now than at the time of its profit warning last year. Goldman Sachs is also negative and has reduced its price target from 332p to 320p. Investors a...

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