Asian stocks continued to slide during the night with the South Korean Kospi down -1.92% at 2,314.52. Over in the US the Dow saw its largest one-day dip since mid May yesterday, down almost 1% to 21,844 points. Japan’s market was closed for a holiday.
However most markets have seen significant gains through 2017 so some stocks pullback was overdue (though it took Kim Jong Un and President Donald Trump to set it going).
Adding to the mix is the strengthening of Japan’s yen with USD/JPY in a solid downtrend: the pair slipped almost 0.80% to 109.1900 overnight. The euro was up 0.07% against the dollar at $1.1765 while the pound was up by the same amount at $1.2982.
Not helping the dollar was disappointing US producer price index inflation numbers, helping dampen expectations on more Fed tightening. Later today US consumer price numbers arrive, estimated to be around 1.8% year–on-year.
- UK FTSE 100 7,389.94 -1.44%
- Dow 21,844.01 -0.93%
- S&P 500 2,438.21 -1.45%
- Nasdaq 6,216.87 -2.13%
- Nikkei 225 19,729.74 -0.05%
- DAX 12,014.30 -1.15%
- CAC 40 5,115.23 -0.59%
- Gold 1,291.90 +0.15%
- Oil WTI 48.15 -0.91%
Snap shares sink further
A dearth of UK corporate news this morning. However more focus on Snap shares: Snap yesterday reported $400m in quarterly losses which helped push shares down almost 15%. Snap shares are now valued at $13.77 though it came to market in March priced at $17.
Yesterday chief exec Evan Spiegel claimed he and co-founder Robert Murphy would hold onto their stock – no selling. The medium term problem Snap has is that though revenues came in at more than $181m in the last quarter, its expenses are far greater at $630m.
Snap's user base growth is also slowing. It attracted 8m in the first quarter of 2017 but that slipped to 7m for the second quarter. Monetization is “progressing nicely,” Spiegel said yesterday in an interview with analysts, “although we are still in very early stages as we continue to build out our self-service and programmatic infrastructure.”
Domino's Pizza carves up larger London slice
Back in the UK Domino’s Pizza has tightened its grip with its main London franchisee. Domino’s will pay £24m to have a 75% stake in a newly formed company whose assets will consist of all franchisee operations – 25 existing Domino's stores in London.
“The creation of the partnership will enable DPG to take advantage of the significant growth opportunity in the London area,” said Domino’s in an announcement to the City this morning. At 280.27p Domino’s shares are down 27.14% on the year.
Old Mutual profits climb on sterling weakness
Profits for Old Mutual have been given a lift by the weaker pound. Six month profits for the insurer came in at £989m, up 37%. Old Mutual now plans to dual-list Old Mutual Wealth and its emerging market operations. It's also cutting its stake in OM Asset Management.
"Our main markets," said the company this morning, "remain subject to significant political and economic uncertainties but our businesses are well managed and resilient."
Breaking news: UK Energy claims more British consumers are switching energy supplier, up 14% this year so far. In July 385,000 people switched suppliers alone, up 16% on July last year.