Spreadex Market Update
Largely limp open despite strong commodities, Sainsbury’s sees first loss in a decade
The FTSE is now nearing its lowest price for around a month, and only has its latest services PMI to provide any joy ahead of the election tomorrow.
Sainsbury’s saw its full year underlying pre-tax profits fall to £681 million compared to last year’s £798 million, with the company, like Tesco, suffering under charges, totalling £753 million with the brunt of that made up of a £682 million property portfolio writedown. Regardless this is the first time Sainsbury’s has posted a loss in a decade, and provides yet another sign, if one was needed, that the UK’s supermarket sector is in far from robust health. Luckily none of this came as a surprise to investors, meaning Sainsbury’s losses were relatively mild after the bell.
After the Eurozone indices collectively threw their toys out of the pram yesterday afternoon, with the DAX hitting a 2 month low, the region is looking marginally perkier this morning as Greece quickly eased fears that it wouldn’t make its latest payment this morning by handing over the required €200 million to the IMF. One imagines this payment was an incredibly begrudging one given the barbs thrown the way of the IMF, alongside the European Union as a whole, by Greek officials, who accused their creditors of obstructing the path to a solution.
It was such vehemence, yet another stark contrast to the more placating tone of Tsipras and (sometimes) Varoufakis, that sparked the latest Eurozone sell-off yesterday afternoon, and hasn’t helped create a rosy atmosphere in the early hours of Wednesday’s trading. This morning at least the Eurozone has a flurry of services data, alongside retail sales, to distract it from the increasing ugliness surrounding the Greek issue, but so far, despite a very strong Spanish services figure, the Eurozone remains rather lifeless.
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