Monday, June 25: Global indices started the week on the back foot as trade fears were once again at the fore of investor’s thoughts, with basic resource stocks weighing on the FTSE 100(-2.24%). A decision taken over the weekend by OPEC to increase oil production knocked a dollar off (to $74.50/bbl.)Brent Crude in Monday morning trading.
FTSE 100 constituent Carnival fell 11% after declaring a beat of second quarter profit expectations, but guided expectations lower for the financial year due to unfavourable fuel prices. The cruise operator also reported that booking volumes since March had been running ahead of the prior year.
Countrywide plunged 20% after it issued its second profit warning of the year. The UK’s largest estate agent group said it expected first-half earnings to be about £20m lower than last year, with little chance of recovery in the second half. The Group pointed to a ‘subdued’ housing market with deals taking longer to complete, and the rise of online rivals such as Purplebricks. The Group is seeking to raise additional equity finance and aims to cut debt by 50%. Investors applied a read-across to house building stocks, sending them lower intraday.
Across Europe, indices were lower at the close with the FTSE 100 -2.24%, the DAX 30 -2.46% and the CAC 40 -1.92%.