London pre-open: Stocks set for more losses as recession worries weigh
By Michele Maatouk
Date: Thursday 15 Aug 2019
(Sharecast News) - London stocks were set to fall at the open on Thursday, resuming the previous day's decline following heavy losses on Wall Street, as worries about a recession grip global markets.
The FTSE 100 was called to open 50 points lower at 7,097.
CMC Markets analyst David Madden said the recent slew of negative news has seen a huge shake-down in global equity markets, with money pouring into government bonds.
"Both the UK and the US government bonds markets saw inversions in the respective two-year and 10 years yields," he said.
"The inversion of the yield curve is often viewed as a warning that a recession is in the pipeline, and when you add the German GDP report into the mix, you can see why equities slumped and bond yields dropped."
On the data front, July retail sales are at 0930 BST. On a monthly basis, sales are expected to have slipped 0.2%, which would be a sharp decline from 1% growth in June.
In corporate news, continued copper sales growth partially offset lower commodity prices for Kaz Minerals in the first half of 2019 as revenues and core earnings both fell.
Earnings before interest, tax, depreciation and amortisation fell to $620m from $690 on flat revenues of $1.052m. Copper prices have fallen over worries of a slowdown in China, although the company maintained full year production guidance of 300 kilotonnes. Copper production for the period increased by 6% to 147.6 kt.
Elsewhere, GVC Holdings reported a 5% improvement in proforma group net gaming revenue for the six months ended 30 June, to £1.81bn, while proforma group underlying EBITDA fell 7% to £323.4m.
The FTSE 250 gambling giant said that was ahead 11%, however, after adjusting for the estimated impact of the triennial review and incremental online taxes. Its board recommended an interim dividend of 17.6p per share - an increase of 10% year-on-year.
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