Kingfisher and Sage lead FTSE fallers
Fiona Cincotta November 20, 2019 6:45 PM
Lower sales and weaker profits for UK blue chips are pulling the FTSE lower this morning and the index is trading close to 1% lower.
Lower sales and weaker profits for UK blue chips are pulling the FTSE lower this morning and the index is trading close to 1% lower. The first television debate between Boris Johnson and Jeremy Corbyn barely threw up a winner – the polls later suggested that after the debate Johnson was only in a two point lead. For markets that means more confusion and further pound weakness, making it difficult to call how the election on December 12 will play out.
Trump China threats add additional weight
In addition to domestic woes the renewed hostility in President Trump’s comments on China trade relations again created a risk-off trading environment which added to the FTSE’s decline. In a comment Tuesday Trump said that if there was no deal with China he would raise tariffs even higher.
DIY group Kingfisher dropped 6.8% before starting to recover slightly after it reported another quarter of weak sales. Shares in Sage group also came under pressure as the enterprise software group reported 9.3% in pre-tax profit. Its recent plans to sell its payment processing unit Sage Pay did little to alleviate the decline. Aviva was also among the top losers on the FTSE despite plans to sell its Hong Kong unit in a bid to revive investor interest.
UK politics leaves pound in limbo
The fact that the first public head-to-head between Boris Johnson and Jeremy Corbyn didn’t bring out a clear winner and also reflected some of the jadedness felt by UK voters towards the two major parties has left the pound in a limbo this morning. The currency is showing barely any signs of life against the dollar and the euro as investors wait for the next cue to help them call election results.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.