Stock markets in Europe are lower across the board as investors get ready for the G7 meeting which starts today.
Some of the largest economies in the world could be engulfed in a trade war, and dealers will be paying close attention as the global leaders meet in Quebec. The FTSE 100 is enduring a wide range sell-off as banking, mining and oil stocks are all lower.
Standard Life Aberdeen shares are in the red after Lloyds sold its remaining shares in the company, which accounts for 3.3% of the asset manager. The relationship between the two financial institutions has deteriorated since Lloyds decided to serve notice on the agreement it had with the fund manager in February. Approximately 5% of Standard Life Aberdeen’s revenue was derived from that contract. The share price has been in decline since January, and if the bearish move continues it could target 336p.
BT announced that CEO, Gavin Patterson, will step down later this year. Last month Mr Patterson revealed an aggressive restructuring plan which would hopefully lead to savings of £1.5 billion. It was reported that a number of influential shareholders had concerns about Mr Patterson’s ability to lead the company in the restructuring period. The share price has been in decline for over two years, and this has put additional pressure on Mr Patterson. If the stock price breaks below 200p, it could target 175p.
EUR/USD has been hit by the rebound in the greenback. French industrial output in April fell by 0.5%, while economists were expecting an increase of 0.3%. The March report saw a drop of 0.4%. This adds weight to the argument that France is going through an economic soft patch.
Facebook will be in focus today after the company revealed a glitch yesterday. The error affected 14 million users, as private posts were accidently made public. The reputation of the company is likely to be damaged again, and this might impact advertising revenue.
We are expecting the Dow Jones to open down 140 points at 25,101 and we are calling the S&P 500 down 15 points at 2,755.
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