Asian markets today took their lead from Wall Street falls last night. The red ink was all over Asian indices with the Nikkei down -1.43% and the Asia Dow down -1.16%. The long shadow of Apple – down more than -2% yesterday – fell heavily across Taiwanese tech suppliers.
Meanwhile in China lending giant China Construction Bank saw a steep -2.41% share price slip helping push the Hang Seng -1.18% lower.
Fears of a global stock market correction were smoothed over this morning by James Bevan of CCLA Investment Management. “We're seeing a very significant shift in upwards earnings which is driving markets up,” Bevan told Radio 4’s Today. “While we may be in a melt-up, as long as this is driven by earnings, the risk of a melt-down are very low."
The bigger unknown is the rising worry about bond yields, possibly bringing higher company costs. Overnight the pound was -0.18% lower against the euro at 1.1346 and -0.38% down on the dollar at 1.4017.
- UK FTSE 100 7,671.53 +0.08%
- DAX 13,324.48 -0.12%
- CAC 40 5,521.59 -0.14%
- Euro Stoxx 399.80 -0.19%
- Dow 26,439.48 -0.67%
- S&P 500 2,853.53 -0.67%
- Nasdaq 7,466.51 -0.52%
- Nikkei 225 23,291.97-1.43%
- Gold 1,338.60 -0.48%
- Oil WTI 64.86 -1.07%
PZ Cussons warns on UK trading
Carex and Original Source maker PZ Cussons says half-year revenues are up +3.3% to £385.4m though adjusted profit before tax is down -14.1% with adjusted earnings per shares slumping -11.4%.
The personal care maker says profitability is anticipated to improve in the second half from new product launches and distribution expansion – but the UK picture is looking hard going.
“Tough trading conditions in UK washing and bathing division in first half with further brand initiatives planned for second half to improve performance.” The beauty and personal care products player is maintaining the interim dividend at 2.67p per share.
PZ’s 330.20p share price is up +1% in the last month but +9.5% higher over 12 months.”
UK growth set to stumble - leaked Cabinet report
More Brexit despondency overnight. A leaked government report suggests UK growth could be -8% lower overall over a 15-year period if it leaves the EU. The document is labelled “EU Exit Analysis – Cross Whitehall Briefing”, dated January 2018.
Buzzfeed says the report looked at three plausible Brexit economic situations aligned to current EU relationships. A ‘no deal’ scenario, “would reduce growth by 8% over that period," says Buzzfeed. “The softest Brexit option of continued single-market access through membership of the European Economic Area would, in the longer term, still lower growth by 2%.”
Breaking news: US private equity firm Blackstone is thought to be at an advanced stage to buy a 55% stake in the Financial and Risk arm of Thomson Reuters for $17bn. Ryanair says it has reached a deal with the British Airline Pilots' Association (Balpa) on pay and holidays. "Given Ryanair's previous hostility towards unions, today's agreement is an historic one," said Balpa general secretary Brian Strutton.