European markets slip amid fears of global growth slowdown; UK retailer Asos down 36%
European stocks traded lower Monday morning, amid escalating concerns of a sharp slowdown in global growth.
The pan-European Stoxx 600 was down 0.25 percent with majority of sectors in negative territory. The FTSE 100 opened 0.16 points lower, the CAC was down 0.3 percent, while the DAX was lower by 0.08 percent, according to IG.
In terms of stocks, retail was down the most, by more than 1 percent. UK retail stocks are making heavy losses on Monday, with Asos down 34 percent, Next down 8 percent, Marks & Spencer down 4.6 percent Boohoo shares down 19.4 percent.
On Monday, Asos cut its annual sales growth and profit margin forecasts, becoming the latest British retailer to highlight very poor November trading. ASOS lowered its sales growth forecast for the 2018-19 year to 15 percent from 20-25 percent previously and cut its earnings before interest and tax (EBIT) margin target for the year to around 2 percent from 4 percent.
Meanwhile, basic resources found itself at the top of the best performing stocks, up 0.8 percent.
Market focus is largely attuned to concerns surrounding cooling global growth after soft economic data from China and Europe in the last week added further concerns. On Friday, China reported weaker-than-expected retail sales data, growing at its weakest pace since November 2003.
European stocks traded lower Monday morning, amid escalating concerns of a sharp slowdown in global growth.
The pan-European Stoxx 600 was down 0.25 percent with majority of sectors in negative territory. The FTSE 100 opened 0.16 points lower, the CAC was down 0.3 percent, while the DAX was lower by 0.08 percent, according to IG.
In terms of stocks, retail was down the most, by more than 1 percent. UK retail stocks are making heavy losses on Monday, with Asos down 34 percent, Next down 8 percent, Marks & Spencer down 4.6 percent Boohoo shares down 19.4 percent.
On Monday, Asos cut its annual sales growth and profit margin forecasts, becoming the latest British retailer to highlight very poor November trading. ASOS lowered its sales growth forecast for the 2018-19 year to 15 percent from 20-25 percent previously and cut its earnings before interest and tax (EBIT) margin target for the year to around 2 percent from 4 percent.
Meanwhile, basic resources found itself at the top of the best performing stocks, up 0.8 percent.
Market focus is largely attuned to concerns surrounding cooling global growth after soft economic data from China and Europe in the last week added further concerns. On Friday, China reported weaker-than-expected retail sales data, growing at its weakest pace since November 2003.
Stocks in Asia mostly traded higher trade on Monday following a report suggesting further turmoil for the markets in 2019.
The Bank of International Settlements (BIS), an umbrella group for the world’s central banks, said on Sunday that recent market tensions are a sign of more turmoil to come. It warned that a normalization of monetary policy is likely to trigger a flurry of sharp sell-offs in the near future.
Meanwhile, sterling hovered near its 20-month low touched last week, concerns that Britain was headed for a chaotic exit from the European Union increased.
Britain has just over 100 days to leave the bloc on March 29 and chances of a no-deal or a chaotic Brexit deal have gone up after strong oppositions to Prime Minister Theresa May’s draft deal.
