I have no idea who won round one of the Presidential election. I think it depended on who you watched or spoke to. Some felt HR-C just about nudged it in a monosyllabic debate, lacking in any foresight or intellect. Some others believed that Trump was still ahead in the poles. Certainly the media sided with Clinton which gave markets in Asia and in Europe some momentum in the hope that there might be a relief rally. There was one but if you blinked you missed it. As over the hill the sword of Damocles appeared, in the form of Deutsche Bank and the clouds of uncertainty fell on its share price. Having been slashed by 7.5% yesterday to €10.55, today DB’S share price is down another 2% to €10.32 at 2.30pm.
The FTSE 100 bounced out of the traps adding 40 points but after 2 hours it did not matter 2 buttons about the Presidential election debate, it was all about Deutsche Bank and the lack of information as to its long term robustness and the terrible damage the lack of transparency was having on the banking sector, which undoubtedly affects long-term growth prospects. Yes finance for SMES is in plentiful supply but consumer banking could feel the squeeze. HSBC was up 1% today, thanks to an ‘on-going’ buy-back programme. The rest of the UK banking system was down an average of 1%. Within 2 hours the FTSE was flat and at 2.30pm the FTSE 100 had fallen 30 points at 6785, having 30 minutes before been down 48 points. The FTSE 250 was down 0.6%. There isn’t a good feel about the market, but logic has flown out of the window in very thin trading.
Pharmaceuticals were lower by an average of -0.5%. Tobaccos were up 0.25%. Of those companies posting results today, Wolseley was down 3.4%. Business in Europe and in the UK was patchy. Thos Cook opened up +4.5% but it has surrendered value all day and is easier by 1.5%. Close Brothers started up 4% and are also down 1.5%. Card Factory is up 2%, United Utilities +1%. AG Barr was clipped by 0.5%. Boohoo.com – having bee up 2.5% is currently flat having travelled and arrived. What a success story flagged up by Mike Stewart at 23p in May 2015 and now stand at 96p! Sainsbury posts a trading statement tomorrow – up 0.5%. If like for like sales are better than -1.5% in the last quarter, that will be taken as positive. The Street of Dreams saw the DOW add 25 points at the opening.