market falling stocks lower bear market

Stock markets in Europe are weaker today as the macroeconomic outlook isn’t looking particularly rosy. 

The chatter of a potential trade war is still in circulation, especially now the EU is contemplating imposing a digital sales tax. Should it be introduced, it could impact companies like Facebook and Google.

Kingfisher shares are under pressure after the company posted a fall in profit. Although revenue rose by 3.8%, profit fell by 10%. Its Polish business and the Screwfix unit in the UK are performing well, put product availability issues at the French operation weighed on the group. The company will continue with its transformation programme, but the outlook remains mixed. The stock is down 7.8% today. 

Softcat shares are in the red despite the company posting respectable figures. First-half revenue rose by 24.8% and gross profit jumped by 22.2%. The interim dividend was increased by 3.3%. The stock has been popular with brokers, as companies like Berenberg, Jefferies and Investec all upped their rating on the company in the past couple of months. The stock has had a great run over the last 15 months, so some profit-taking isn’t a surprise. 

At 6pm (UK time) the Federal Reserve will announce its latest interest-rate decision, and the consensus is for a rate hike of 0.25%, to 1.75%. The press conference gets underway at the same time. Traders will be listening closely to the tone of new Federal Reserve chief Jerome Powell’s speech, as he could offer clues about future monetary policy. 

GBP/USD jumped on the back of solid wages and jobs data from the UK. British average earnings excluding bonuses rose from 2.5% to 2.6% in January – meeting estimates. The unemployment rate ticked down to 4.3% from 4.4%, against expectations for it to remain at 4.4%.

We are expecting the Dow Jones to open up 3 points at 24,730 and we are calling the S&P 500 up 1 points at 2,716.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

 

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.