Supermarkets drag FTSE lower on price war fears

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...