No index bucked the trend: from the Nikkei 225 to the Hang Seng, Sensex and Asia Dow, all bled red overnight with the Nikkei 225 down 0.40%; Canon shares slipped almost 3.8%. Australian bank stocks were down markedly.
The Asian reticence broadly followed losses across Europe and the US yesterday. Significant market concern remains about global central bank tightening – strong signals that the days of cheap money are limited. Tensions around North-South Korea also continue to bother Asian markets.
The euro was trading at $1.1408 overnight with the pound at $1.2952. Hawkish noises from the ECB continue to strongly support the euro. However today sees the release of US non-farm payrolls at 1.30pm – this data is a major market mover and an indication of economic growth. US wages, for many, though remain stubbornly low.
UK manufacturing and industrial production figures are imminent.
- UK FTSE 100 7,337.28 -0.41%
- Dow 21,320.04 -0.74%
- S&P 500 2,409.75 -0.94%
- Nasdaq 6,089.46 -1.00%
- Nikkei 225 19,913.35 -0.40%
- DAX 12,381.25 -0.58%
- CAC 40 5,152.40 -0.53%
- Gold 1,219.70 -0.29%
- Oil WTI 44.91 -1.34%
Aveva offers 27p per share dividend
We commence with a trading update from engineering software operator Aveva. All steady it claims: “We expect the phasing of revenue in FY 2018 to be broadly similar to the prior year.”
Aveva claims a robust balance sheet with a net cash position of £152m; good cash generation was made in the first quarter it says. Subject to shareholder consent Aveva proposes a 27p per share dividend, payable 4 August.
Credit Suisse kept to their Outperform rating on the stock in mid June with a 2,200p price target. Currently Aveva shares are trading at 1,975p, up 11% on the year and 5% higher year-to-date.
Gig economy change?
A major shift in policy for Deliveroo. The food delivery operator says it’s willing to offer injury and sickness payments to up to 15,000 riders, currently classed as ‘self employed’. The news is significant because of the rising growth of the ‘gig economy’, and the pressure for other operators to follow suit – possibly.
However some negotiation looks likely; Deliveroo claims it’s not possible to offer benefits currently as its riders are classified as self employed by UK law (so not protected by minimum wage and holiday pay stipulations).
"We want to offer riders more security. We believe everyone - regardless of their type of contract - is entitled to certain benefits, but we are constrained in offering these at the moment,” the BBC reported.
Lastly, grocer Morrisons says it has recruited Tony van Kralingen as a non-exec director with effect from 1 September 2017. Kralingen will also chair the Morrisions remuneration committee.
Breaking news: Lux bag maker Mulberrry reveals joint venture plans with Japan's Onward Global Fashion.