🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

Asia Disputes Rumble On; Matthey, Mail Lead FTSE Fallers 

Published 21/11/2019, 10:44
UK100
-
HK50
-
JMAT
-
FTMC
-
IDSI
-

The Sino-US dispute seems no closer to a resolution despite weeks of back-and-forth on what negotiators call the phase one of the deal. Messages from the two sides remain contradictory. While some Chinese officials keep saying optimistic things about the state of the talks, an interview with an unnamed White House official published by Reuters on Thursday poured cold water on hopes of a resolution.

The continued rumbling of protests in Hong Kong is not letting up either and Asian investors in particular are keeping a wary eye on the developments there. The local stock index Hang Seng dropped 1.6% in early trade and although indexes in Shanghai and Tokyo lost less ground, the overall sentiment remained fairly cautious.

Matthey (LON:JMAT), Mail lead fallers

Metals and chemicals firm Johnson Matthey led the FTSE fallers with a 6.56% decline after it reported a 2% decline in profits. However, unlike many other industries that fight against the tide of the times Johnson Matthey (LON:JMAT) is actually well placed to benefit from calls for more environmental protection. Its trademark products are catalytic converters that control car emissions and it is working on new lines that will be used in other industries too. That explains the company’s willingness to up dividends for the year in expectations of a stronger second half performance.

On FTSE 250 the biggest story is Royal Mail (LON:RMG) with a 17.49% decline. Though the postal service reported an operating profit for the first half of the year, turning around last year’s loss, investors remain bearish on the stock. Its planned restructuring is currently behind schedule and possibly the even bigger bigger dampener is a threat of strike in December. Not least, the postal service is on Jeremy Corbyn’s nationalization radar which is adding to the stocks’ lack of popularity.

Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient.

Any references to historical price movements or levels is informational based on our analysis and we do not represent or warrant that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness, nor does the author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Original Post

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.