If it was not for Donald Trump and Kim Jong-un, it’d be pretty chilled at the moment. Just another quiet Friday, lower summer volumes and all that. Well, as we’re all aware this isn’t the case, and these two are making up for the lack of earnings results and economic data releases at the moment that would usually spur markets. I mean thanks guys, but surely just some new economic agenda or a trade deal could do the same, we don’t have to bring nuclear warheads into the equation? US stocks unsurprisingly extended losses on Thursday and as markets began Friday’s session, Asian shares fell and European bourses also continued their dive. It is understandable, having the threat of these two unpredictable leaders willing to engage in a ‘my missile is bigger than yours’ competition isn’t good news at all, for anyone let alone stocks. The weekend’s developments will be watched vigorously by investors and those alike, so maybe postpone the BBQ*
(*Britain not included).
Moving on, Snap was one of the few headline company stories today; Snap or Snapchat as it is better known as, saw shares plummet c. 14% on Thursday after quarterly losses of £310m and fewer than expected users. The firm reported 173 million daily users, up 4% but this wasn’t enough to stop the share price decline that’s been ongoing for the majority of the time since shares listed back in March. Revenue was double in the quarter compared to the comparable period in 2016 but expenses grew at a faster rate. Q2 user growth was again lower Q-o-Q and increasing competition from the likes of Facebook is making life hard for Snap. Especially as Instagram pretty much rips off everything Snapchat introduces weeks after and also offers more than just cat filters.
On the day they FTSE closed 1.08% lower to end the week at 7,309.96. As we write American stocks are surprisingly sitting higher despite the negative session in Europe and Asia and the fact that nothing has changed from a political standpoint.