There was a small measure of respite for a select group of Asian shares overnight. Japan’s Nikkei managed a 35-point rise, up +0.16% (though the Nikkei was up +3% at one point). However Chinese shares continued their march down with the Shanghai Composite -1.80% lower and the Hang Seng falling more than -0.90%. South Korea’s Kospi made up for more modest earlier falls by sinking -2.13%. So still a lot of red on the screens.
Last night the Dow Jones finished +2.33% higher while the Nasdaq was up +1.74%, checking the previous day’s massive falls despite some tumultuous intraday swings. Risk and uncertainty are generally viewed as dollar-supportive reminds Shaun Osborne from Scotiabank (the spot dollar price remains on the defensive, down -0.15% to 89.54).
“But the dollar’s failure to capitalize more fully on the stock slide, suggesting investors are less keen to seek safety in liquid dollar-denominated investments, is perhaps not a positive reflection on the dollar’s longer term perspectives”.
Overnight the pound was +0.05% up on the dollar to 1.3963 but -0.03% lower against the euro at 1.1268. Coming shortly are European industrial production numbers plus a UK Halifax house price update.
- UK FTSE 100 7,141.40 -2.46%
- DAX 12,392.66 -2.32%
- CAC 40 5,161.81 -2.35%
- Euro Stoxx 600 372.79 -2.41%
- Dow 24,912.77 +2.33%
- S&P 500 2,695.14 +1.74%
- Nasdaq 7,115.88 +2.13%
- Nikkei 225 21,645.37 +0.16%
- Gold 1,332.40 +0.22%
- Oil WTI 63.86 +0.74%
Redrow half-year revenues surge
Housebuilder Redrow says group revenues are +20% higher to a first-half £890m record. Pre-tax profits come in at £176m, up +26%, while earnings per share rise +27% to 39.5p.
The Redrow interim dividend climbs to 9p per share compared to 6p a year ago. Reservations in the first five weeks of the second half are in line with a strong comparable period last year Redrow says. Its shares are down more than -3% in the last week but +31.6% higher for the last 12 months.
“We entered the second half with a record order book, and customer traffic and sales remain robust. Given the strength of both our order book and land holdings, together with the robust sales market, our growth strategy remains on track.”
Equal pay dispute could cost Tesco £4bn
If a legal challenge is successful many thousands of women employed at Tesco could see back-pay amounts of up to £20,000 returned – or up to £4bn total. It’s alleged female store staff paid by the hour learn less than men in warehouse roles.
“There really should be no argument that workers in stores, compared to those working in the depots, contribute at least equal value to the vast profits made by Tesco,” Paula Lee from Leigh Day solicitors, the firm acting for up to 1,000 women told the BBC.
Up to 200,000 supermarket staff could be affected. Tesco shares were flat yesterday but are down more than -4.5% in the last week.
Breaking news: Business secretary Greg Clark says ‘gig economy’ workers will have holiday and sack pay enforced by the government. “We're enforcing the rights that people have, so employees and contract workers are entitled to sick pay, but often the little guy doesn't have the ability to enforce the payments of those rights against an employer”. Rio Tinto profits soar to $8.6bn compared to $5.1bn.