Spreadex Market Update
Sports Direct loses yesterday’s gains, and then some, as it predicts 20% fall in full year profit
Having risen more than 5% yesterday thanks to news it was, among other changes, ditching zero contract hours, Sports Direct has plunged nearly 10% this Wednesday following a rather severe profit warning. The company now expects full year underlying profits to drop by 20% to around £300 million, news that was understandably poorly received by investors, especially those that had poured into the stock during Tuesday’s surprise growth. That fall is before the annual general meeting even begins, with shareholders baying for the blood of chairman Keith Hellawell (who actually offered to resign last weekend) and founder Mike Ashley.
Beyond Sports Direct there was little going on after the open. The FTSE couldn’t make any headway in recovering yesterday’s losses, investors appearing to wait for the morning’s manufacturing and industrial production figures (expected to slump to -0.4% and -0.3% respectively) before making any significant moves. The pound, meanwhile, struggled to maintain the growth that has defined the last few trading sessions, slipping by 0.2% against both the dollar (but crucially remaining above 1.34) and the euro.
With an empty economic calendar the Eurozone indices didn’t have much to do after the bell, both the DAX and CAC starting the day effectively flat. They be feeling a bit jittery ahead of tomorrow’s ECB meeting, with it currently unclear if, and by how much, the central bank will extend its current stimulus programme.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.