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ADVFN Morning London Market Report: Thursday, May 19, 2022

London Open: Shares fall after the sale of Wall Street

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London’s stock market was sluggish in early Thursday trading, inspired by a weak session on Wall Street, which suffered the worst losses since June 2020.

At the 0850 BST, the FTSE 100 was 0.9% lower at 7,368.65. Overnight, the S & P 500 fell 4%, while the tech-heavy Nasdaq fell 4.7%.

Susannah Streeter, Senior Investment and Market Analyst Hargreaves Slan’s DownStates:

She said traders are trying to assess how difficult it is for central banks to curb rampant inflation without reversing the economy.

“Slides were triggered by a major US retailer Goal It warns that customers are less likely to already buy high-priced items such as furniture and electronics, and that fuel prices and supply chain costs are rising.Followed by hot Walmartof. It is feared that target suffering is a precursor to more struggle for retailers, as rising interest rates are expected to further reduce consumer spending. There seems to be a tendency for people to save money on holiday-like experiences rather than household items with Target’s luggage.

“Consumers are becoming more cautious, but after the blockade of Pandemic, demand for travel with airlines like easyJet is clearly stagnant, increasing capacity to meet demand and spiked restaurant reservations. Therefore, commodity price inflation can fall, but it can be difficult to keep service prices down, especially when wage costs are high as labor disputes are passed on to customers. “

In the stock market Kingfisher, Tesco, Unilever, PageGroup, Bunzl When GlaxoSmithKline Everything fell because they traded without qualifying for dividends.

Royal mail After reporting an increase in profits for the full year, he was at stake as he warned of rising prices and cost savings of £ 350m to combat rising inflation.

vice versa, Airtel Africa It rose after its subsidiary Smart Cash PSB said it had started operations in Nigeria.

HomeServe The emergency housing refurbishment group surged after agreeing to be acquired by Brookfield Asset Management of Canada for a £ 4.1 billion transaction.

Auction technology We also made a profit by raising our full-year earnings growth guidance after exceeding our expectations for the first half of the year.

Low cost carrier EasyJet flew Capacity in the third quarter was 90% of pre-pandemic levels, higher after stating that it reduced half-year losses.

Top 10 FTSE100 riser

Top 10 FTSE100 Farrer

US Closing: Dow loses nearly 1,200 points when stocks fall again

Wall Street shares fell due to Wednesday’s Closing Bell, with both the Dow and S & P recording the worst one-day losses in almost two years.

lastly, Dow Jones Industrial Average As, decreased by 3.57% at 31,490.07 S & P 500 At 3,923,68, down 4.04% Nasdaq Composite Index It was 4.73% lower at 11,418.15.

The Dow fell 1,164.52 points on Wednesday, erasing profits recorded on Tuesday, making it the worst session since June 2020.

“The market has returned to its former habits as rising yields have triggered the sale of stocks,” he said. Equity Capital Market analyst David Madden.

“At the beginning of the week, the stock market experienced low volatility, due to the chilling US bond yields, but today 10-year yields trade above 3%, accelerating the decline in equities. rice field.

“In line with recent themes, technology-intensive Nasdaq is under the best-selling pressure.”

Higher yields are seen as a sign that bond markets are considering further interest rate hikes, as activity in the bond markets often reflects what traders had predicted about interest rates, Madden said. He said he was.

“Earlier this month, the Fed raised interest rates by 50 basis points.

“Shortly ago, Fed member Charles Evans called for an additional 50 basis points increase at next month’s meeting.

“Fear that larger rate hikes could hurt stocks.”

In terms of data, US mortgage applications fell 11% weekly for the seven days leading up to May 13, the largest decline in three months. Mortgage Bankers Association..

The average contract rate for 30-year fixed-rate mortgages fell 4 basis points to 5.49%, resulting in a 11.9% drop in the purchase index and a 9.5% sharp drop in the repurchase index, but not seen since 2009. I stayed.

“General uncertainties about the short-term economic outlook and recent stock market volatility can delay home searches for some households,” he said. MBA Economist Joel Kang.

Elsewhere, US homebuilding activity has weakened more than expected last month.

According to the Department of Commerce, under seasonally adjusted conditions, housing starts fell 0.2% month-on-month, reaching an annual rate of 17.72 million. This is well below what economists expect from 1.77 million printed matter.

Building permits, a key indicator of activity, fell 3.2% a month to reach 1.81 million clips.

In stocks Loews First-quarter revenues were nearly flat at $ 2.3 billion, despite total sales declining from $ 24.4 billion to $ 23.7 billion as April’s outdoor seasonal category was affected by the “out-of-season cold.” It was, but it decreased by 5.26%.

Fellow retailers Goal Quarterly earnings plummeted 24.93% after lower-than-expected quarterly revenues, driven by soaring fares, higher price cuts and lower-than-expected sales of discretionary products.

Car marketing company AutoWeb After expressing doubts to shareholders that it could survive as a going concern, it closed at 18.99% lower, in addition to a 65% loss on Tuesday.

Thursday Newspaper Summary: Pension Gap, Cash Access, Energy Industry

Studies have shown that women working in many industries have half the retirement savings of men, so the union calls on the government to take urgent action to close the “tremendous pension gap.” I did. According to TUC, Thursday was “Gender Pension Gap Day,” and UK women’s pensioners had no retirement income and began receiving payments after spending virtually four and a half months. – Guardian

City Watchdogs are empowered to give local communities across the UK access to cash and may ultimately fine banks that do not comply. Under the government’s pending financial services bill, the Financial Behavior Oversight Agency has announced that the UK’s largest banks and building-and-loan unions will send consumers to ATMs and other withdrawal and deposit facilities within a “reasonable” distance from the community. Responsible for ensuring access. – Guardian

Brussels told European Union countries that they should consider instructing drivers to slow down highways in the fight to throw away Russian fossil fuels. The European Commission states that energy savings are the “quickest way” to tackle the energy crisis. It has published a list of behavioral changes that claim to reduce oil and gas demand by 5%. – Telegraph

The energy industry believes that the victims of cyberattacks can quickly become serious and not only fatal, but also damage critical infrastructure and the environment. Such attacks are expected within the next two years, according to a study by global energy executives at DNV, a risk management group. – Times

Certified accountant professionals are faced with a question from Congress why it put tens of millions of pounds of fines in their pockets for the auditor’s misconduct rather than handing it over to the victims. .. Darren Jones, chairman of the Commons’ Business, Energy and Industrial Strategy Commission, told the Chartered Certified Accountants Association after it was revealed that specialized agencies have been fined £ 123.4 million since 2004. I’m asking for an explanation. To your own numbers. – Times

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ADVFN Morning London Market Report: Thursday, May 19, 2022

Source link ADVFN Morning London Market Report: Thursday, May 19, 2022

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