Trading across Asia weakened overnight following the Barcelona terror attack. The Nikkei was down more than -1.2% – its lowest point for three months – while safe haven assets predictably gained (gold up slightly).
Shares in the US were already under pressure yesterday following rumours of a key economic resignation, subsequently quashed. Yesterday Wall Street stock sank by its second biggest margin this year. A third Trump business panel has also been jettisoned; there is growing anxiety about the Trump administration's ability to get things done.
Shares meanwhile in the UK were damaged by more retail spending weakness (lacklustre numbers from Kingfisher, in particular).
The euro came under pressure after ECB minutes revealed concern about its upward trajectory. Shortly after 7am this morning the euro was at $1.1731 while sterling had improved to $1.2890. European shares look likely to open lower.
- UK FTSE 100 7,387.87 -0.61%
- Dow 21,750.73 -1.54%
- S&P 500 2,430.01 -1.54%
- Nasdaq 6,221.91 -1.94%
- Nikkei 225 19,461.89 -1.23%
- DAX 12,203.46 -0.49%
- CAC 40 5,146.85 -0.57%
- Gold 1,292.70 +0.02%
- Oil WTI 47.07 -0.04%
Renew Infra up; no EU deal 'survivable'
A quiet morning on the corporate reporting front. A quick look at Renew Infra. The FTSE 250 player says pre-tax profits for the half year to 30 June came in at £31.3m; it claims a 7.2% total shareholder return, upped to 7.6:% on a NAV basis.
“Although competition for renewables projects remains strong,” Renew said in a statement this morning, “we maintain a disciplined approach to sourcing investments across our target technologies and geographies.”
Elsewhere the Institute for Economic Affairs says quitting the EU without a deal would be quite survivable for the UK economy. Key here, it claims, would be the chance to strip away all import barriers, thereby clipping prices and (it claims) supporting wage growth.
Meanwhile it’s increasingly thought that negotiations with the EU over the UK’s future trade relationship may not begin in earnest – phase two, following exit arrangements – till the end of 2017.
We end with a surprise resignation from Infosys, a major Indian IT player. CEO Mr Sikka has resigned and Infosys shares have fallen sharply.
Breaking news: Nurofen and Durex maker Reckitt Benckiser says it has signed off its food business sale to McCormick. Its ex foods brands included French's mustard. The $4.2bn sale price will be deployed to lower Reckitt's debt levels.