A dull morning left the markets in the red this Wednesday, with little on the horizon to prompt a turnaround.
Despite sterling suffering its latest setback – the currency undid much of Monday and Tuesday’s recovery with a 0.3% dip against the dollar and a 0.4% slide against the euro – the FTSE had little reason for cheer. Barclays (LON:BARC), Lloyd and RBS (LON:RBS) are all down around 1%, while Associated British Foods (LON:ABF) has shed another 2.5% in value, and Persimmon (LON:PSN) has plunged 3.7%. All this meant the FTSE struggled to claw back yesterday’s losses, with the index instead slipping 0.1%.
Over in the Eurozone the region’s indices were in a similarly sour mood. The DAX slipped 0.2%, with the CAC falling 0.3% and the IBEX down 0.4%. The Spanish index has been in a miserable run of form since the start of the month, dropping 3.7% as the Catalan crisis rumbles on.
This afternoon looks just as dreary as this morning, with the Dow Jones set to open flat at 23500. One company that is facing a truly horrific Wednesday is Snap, which plunged another 17% lower in after-hours trading following its third quarter earnings release. A sharp rise in net losses year-on-year, rapidly decelerating revenue growth and, most damningly, a worse than forecast increase in daily active users (the third time that’s happened in 3 quarters) prompted investors to disappear as fast as once of Snapchat’s images.
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