Spreadex Market Update
Quiet Thursday morning can’t stall market losses
The FTSE resumed its declines this morning, dipping below 6900 after having started the week at 7050, as the recent bond sell-offs, the troubles in the Eurozone and a post-election hangover all conspired against the markets.
Gains across the board for TalkTalk, with a 3.2% rise in pre-tax profits by the end of March alongside a near 4% increase in revenue inspired the company to upgrade its revenue forecasts for the next few years. Investors initially focused on the mere £1 million increase in profit before tax, leading TalkTalk to fall after the bell; the stock, however, has slowly clawed back these losses and saw some impressive growth once the naysayers were pushed aside.
ITV faltered this morning, and may have itself to blame. Despite a 14% increase in first quarter net revenue alongside 10% growth in its broadcast and online revenue, the media giant found itself falling by around 2.5% after the bell with investors spooked by the company’s current 24 hour staff strike, as well as the prevalence of a general negative sentiment seen elsewhere.
A rather understandable decline was felt by Vedanta Resources this morning, with a hefty $6.6 billion in impairment charges following the precipitous fall in oil prices leading to a whopping net loss of $1.8 billion. This news, unsurprisingly, caused around 3% in losses for Vedanta, losses that rippled through the rest of the commodities sector with Rio Tinto and BP also suffering; oil’s prices may be slowly rising, but its price crisis has left a swathe of victims in its wake.
Despite a flurry of bank holidays in the region, the Eurozone indices are plugging away this morning ahead of busy day for Mario Draghi. A lecture in Washington will give way to the ECB President’s latest meeting with the IMF to discuss, no surprises here, the ongoing situation in Greece. For their part, Greece has urged its creditors to speed up the negotiating process whilst refusing to change any of its own ‘red lines’; hardly the stuff of compromise-led resolution. With nothing to distract from this saga the already volatility-inclined DAX led the latest Eurozone losses as Thursday continued.
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