Markets Drop as Clipper Delivers

December 6, Thursday: The FTSE 100(-3.15%) was pushed to a two year low courtesy of oil & mining stocks, and later news which described the arrest of a top Huawei executive – this renewed fears of an escalation of US-China trade tensions and prompted global equity markets to plummet.

Canada arrested Huawei’s CFO Meng Wanzhou following a US extradition request, reigniting tensions between DC and Beijing only days after Trump and Xi Jinping looked to have resolved trade differences at the G20 summit in Buenos Aires. The charges remain unknown, but the US has been probing Huawei over possible violations of sanctions against Iran.

Clipper Logistics(0%) outperformed the FTSE All-share(-3.06%) as it announced half-year results on a chaotic day for equity markets. The logistics operator announced revenue growth of 14%, pretax profit growth of 17% and an increase in the Interim dividend of 14% to 3.2p. This was largely driven by new contract wins in the e-fulfilment division which tempered weaker performance in  non-efulfilment logistics and the Commercial Vehicles division. A pipeline of opportunities and significant earnings momentum from H1 is expected to drive a strong H2 performance across the board. The Group did run into labour cost issues, though the open-book nature of contracts affords the Group a degree of margin protection.

At the close European equities were lower, with the FTSE 100 -3.15%, the CAC 40 -3.31% and the DAX 30 -3.48%.

Leave a Reply