Quite a lot of stock market nervousness around: tech shares were down heavily last night Stateside with the Nasdaq seeing close to a -1.5% fall to 6,144.35. Facebook and Microsoft shares were both down almost -2%. Japan’s Nikkei slipped more than -1% in trading today.
In Europe both the Dax and the CAC 40 were down almost -2% yesteday. Part of the European nervousness was down to the higher euro and greater – seemingly – willingness by ECB boss Mario Draghi to temper asset purchase plans. But messages coming out of both the ECB and the Bank of England recently have lacked consistency. There was less volatility for UK shares.
At 7am the pound was at $1.3007 while the euro was at $1.1430, both up 2.5% on the week. Look out for first quarter GDP numbers at 9.30. Plenty of euro-area data out too, including economic sentiment and services confidence numbers at midday.
- UK FTSE 100 7,350.32 -0.51%
- Dow 21,287.03 -0.78%
- S&P 500 2,419.70 -0.86%
- Nasdaq 6,144.35 -1.44%
- Nikkei 225 19,964.54 -1.26%
- DAX 12,416.19 -1.83%
- CAC 40 5,154.35 -1.88%
- Gold 1,246.40 +0.05%
- Oil WTI 45.16 +0.49%
More concern about consumer confidence. Data from GfK claims that Brits are putting off major purchases by some margin with the UK Consumer Confidence Index plunging five points to -10 in June.
“The Overall Index Score is just two points away from last year’s post-Referendum low of -12. We have falls this month reflecting negative sentiment about our personal financial situation and expectations for the wider economy.”
The UK’s measure for its general economic situation says GfK has dipped five points to -25, 12 points lower than June 2016. “Expectations for the General Economic Situation over the next 12 months have decreased two points this month to -23.”
An update from infrastructure developer John Laing Group. The market for secondary infrastructure investment remains “active” it says and JL is part of eleven shortlisted PPP bids due for financial close in the next two years, including six in the US.
“We are in line with our full year guidance for investment commitments and disposals,” says chief exec Olivier Brousse. “The New Royal Adelaide Hospital reached a key milestone with its commercial acceptance by the Government of South Australia on 13 June, and our team was instrumental in reaching a solution.”
Finally, economist Andy Haldane has told the BBC that UK workers continue to be let down by “flatlining pay”. Haldane told Newsnight that UK Plc was not investing enough in productivity - which was part of the problem.
"The root cause of the stagnation in productivity and pay is that long lower tail of firms,” he said. “They're taking the low-productivity road.”
On the surface there is strong UK jobs growth and unemployment is declining. But much of the growth is from the lower-pay service, wholesale and retail sectors often targeting younger age groups.
Breaking news: Game Digital has warned on full-year profits citing concern over supplies of the Nintendo Switch console; trading for the second half of the year should improve it says.