MARKET UPDATE

Tokyo was closed today and the performance of Asia was mixed with China’s PMI manufacturing data expanding at a the pace of a tortoise, resulting in the Hang Seng easing by 1% and the Shanghai Composite perversely adding 1.4%.

 

When the FTSE 100 opened it had no idea what it wanted to do. It was in a quandary or maybe inertia had set in or perhaps today’s banking results were not going to ‘float many peoples’ boats’; or maybe the easing of commodity and oil prices might skim a bit of cream off the top!

 

So the FTSE opened up 22 points, but before long too long the mining and oil sectors took the FTSE 100 south. By 9.00am the FTSE was down 50 points. As mining has been well and truly ‘mullered’ in the last 2 years, it is not surprising that these stocks have bobbed violently around like corks in bath! At the time of writing (3.45pm) Anglo American is down 13% and Glencore 8%. Over all, the sector has surrendered 8% in value. Oil is just 1% lower. Drugs have been strong +0.75%.

 

Banks have suffered today, courtesy of UBS, which was savaged (-7.8%). CEO Ermotti’s inability to rally wealth management underwhelmed investors. Barclays’ acolytes were unhappy about possible skulduggery in Barclays France – down 3.75%. HSBC’s share price fell 1.5%. Profits were down 14% at $6.1 billion, though better than expected. Aberdeen Asset Management had a shocker, having seen funds under management drop by £40 billion to £292 billion – shares down 9.5%. Just Eat grabbed the yellow jersey adding 7.1%. It was on the 12th February 2016, when the share price stood at 330p that Panmure Gordon’s Michael Stewart flagged this stock up, imploring  investors to ‘stick to their guns.’ He did it again last week, implying the stock was hopeless under-valued. The share price rocketed today to 410% – up 7.1%.  He thinks there is more to go!

 

The ‘REMAIN’ mob will try and blame declining UK MARKIT manufacturing data on BREXIT. Don’t believe a word of it! It’s currently a global issue. So, in essence, it had zero influence on the FTSE performance today. At 3.58pm the FTSE 100 was down 50 at 6190. The DOW is down 190 points (1.15%).

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