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Stocks slide as traders tread carefully

stocks lower markets down

stocks lower markets down

Stocks in Europe are slightly in the red as traders we still a bit nervous after yesterday’s slump.

The Nikkei 225 closed lower, and since that was the root cause of yesterday’s fall, dealers are afraid to buy back into the market.

Vedanta Resources revealed a 49% jump in revenue and a 37% rise in earnings for the first-half. The interim dividend was upped by 20%, but it seems that paying the dividend contributed to the rise in net debt. Shareholders welcome a dividend, but when net debt increase because of it, the positive sentiment is partially lost. The stock is up 0.6% today, and has made a respectable recovery since 2016, and should the bullish trend it continue it may target 1000p.

EUR/USD is largely unchanged today and the stronger than expected industrial production figures from France had little impact on the single currency. In September, French industrial production jumped by 0.6%, meeting expectations – the August report saw a decline of 0.3%. Italian industrial production on an annual basis rose by 2.4%, well below the 4.8% expected.

GBP/USD was been helped along by stronger than anticipated industrial and manufacturing output from the UK. On a yearly basis, industrial output jumped by 2.5% and manufacturing output increased by 2.7% ,while traders were expecting 1.9% and 2.4% respectively. Sterling has lacked energy recently, but while it holds above the $1.30 mark its outlook may stay positive.

We are expecting the Dow Jones to open 76 points lower at 23,385, and we are calling the S&P 500 down 9 points at 2573.

At 3pm (UK time) the US University of Michigan consumer sentiment survey will be released, and the consensus is for a reading of 100.7, and that compares with the October reading of 101.1. 


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