Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

HSBC Hurt By Rising Costs, DAX Knocked By Factory Orders

By CMC Markets (David Madden)Stock MarketsAug 06, 2018 12:03
uk.investing.com/analysis/hsbc-hurt-by-rising-costs-dax-knocked-by-factory-orders-200202943
HSBC Hurt By Rising Costs, DAX Knocked By Factory Orders
By CMC Markets (David Madden)   |  Aug 06, 2018 12:03
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Equity markets are mixed this morning. Trade concerns are still weighing on investor confidence. The DAX is the worst performing of the major European markets in light of dire factory order figures.

HSBC shares slipped this morning after the bank revealed an increase in adjusted operating expenses. Costs rose by 7% as the finance house is increasing its investment in China. HSBC derive the bulk of their money in the far east, and the bank is enhancing technology at its retail operations in China. Beefing up technology could may well be a short-term loss, and a long-term gain. Second-quarter pre-tax profit was $5.96 billion, topping analysts’ estimates of $5.79 billion. Despite the trade tensions between the US and China, HSBC is ‘cautiously optimistic’ about the state of global growth.

IWG shares have sold-off severely after the company confirmed that takeover talks have ended. The workspace company was in the crosshairs of a number of private equity firms for a number of months, but this morning, IWG declared that none of the offers were suitable. Now that the outside interest has disappeared, the share price of IWG has slumped.

Spire Healthcare warned that profit will be ‘materially’ lower due to weakness in the NHS related business. The company predicts the NHS business will underperform in the near-term. Spire Healthcare plan to trim capital expenditure this year in order to conserve cash. The stock has been in a downward trend since September 2016, and if the bearish move continues it could target 170p.

EUR/USD is in positive territory despite the dreadful factory orders report from Germany this morning. The update showed a 4% decline in June, while economists were expecting a 0.4% fall. The Eurozone Sentix investor confidence survey jumped to 14.7 in August, which was marginally ahead of the 13.5 forecast.

Tyson Foods will be in focus today as the company will release its third-quarter figures. The company could come under pressure as Chinese tariffs could hurt the business.

We are expecting the Dow Jones to open down 17 points at 25,445 and we are calling the S&P 500 down 2 point at 2,838.

"DISCLAIMER: CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed.

No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. "

Original post

HSBC Hurt By Rising Costs, DAX Knocked By Factory Orders
 

Related Articles

Michael Kramer
Stocks Drop As Canaries Take Flight By Michael Kramer - Aug 18, 2022

The market fell right out of the gate yesterday as rates surged around the globe, following hotter-than-expected CPI data in the UK. The US retail sales number added to the already...

HSBC Hurt By Rising Costs, DAX Knocked By Factory Orders

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email