Spreadex Market Update
Sterling suffers as manufacturing production falls; Sports Direct’s decline gathers pace as AGM gets underway
The FTSE managed to eke out a meagre 0.1% rise this morning despite the fact that manufacturing production hit a 5 month nadir of -0.9% (industrial production was a bit better, unexpectedly remaining unchanged at 0.1%). That is because the pound took the brunt of the bad news, with sterling slipping 0.6% against the dollar and 0.4% against the euro, taking it back below the 1.34 and 1.19 it had recently crossed.
With the Sports Direct AGM kicking-off in Shirebrook the stock’s decline continued to gather pace, plunging more than 10% to loiter just above £3.10. Keith Hellawell will likely face a barrage of criticism when it comes to the (measly 30 minute) Q&A section of the meeting, especially since his rejected resignation offer from the weekend leaked this morning. It will be interesting to see if any of the news coming out of the meeting will drag the stock even lower, or whether it can produce a mitigating effect before the day’s close.
Looking ahead to the US open and it’s hard to see anything taking the focus away from Sports Direct. The only figure of note is the JOLTS job openings reading, which is expected to slip from 5.62 million to 5.58 million month-on-month; that won’t help the hawks heading into the September Fed meeting, so could lift the Dow Jones (currently looking at a 12 point fall) after the bell.
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