Tuesday, 27 September: UK indices were very much on the back foot for the second consecutive day, along with those on the continent as the S&P 500 took a small step into the green in late London trade. The FTSE 100(-0.15%) was weighed down by banking stocks for the second day running, along with a slew of natural resource stocks.
Investors digested potential banking contagion risk related to Deutsche Bank and chatter coming down the wire that an OPEC output-limiting deal will not be made due to differences between Saudi Arabia and Iran at the discussion table. Predictably, Brent crude also slipped 3.50% on the back of the news.
Carnival cruised 3.79% higher after issuing third quarter results yesterday. The stock was subject to some profit taking yesterday, before investors appraised results and started adding the stock to portfolios today. The cruise operator reported its strongest ever results for the 3Q period, as pretax profit grew to $1.47bn, from $1.25bn in the respective prior period, with a concurrent rise in revenue to $5.10bn from $4.88bn. It said revenue during the peak summer season was bolstered by strong performances in both its North American & European brands, and across all major deployments including the Caribbean, Alaska and Europe which should help to deliver 25% earnings growth in 2016.The Group also announced that cumulative advance bookings are ahead of the prior year, and at considerably higher prices.
At the close European indices were down with the FTSE 100 -0.15%, the CAC 40 -0.21%, and the DAX 30 -0.31%.