European equity markets are in the red this morning as traders are worried about the Italian budget situation. The dispute over the Italian budget has intensified, and the EU have warned that disciplinary action is in the pipeline. The political fight has the potential to kick-off another round of the eurozone debt crisis, and that has prompted traders to exit equities. Brexit is still on the agenda, and this time the attention has shifted to Gibraltar. The Spanish government are now applying pressure from the EU side as they want input into any potential deal.
Centrica (LON:CNA) shares are in the red after the company confirmed it lost 372,000 customers in the four months until October. The group lost 341,000 clients in the first six months of the year – the group is now losing customers at a faster rate, and that has rocked investor confidence. In the last seven years, the number of energy providers has soared by 421%. Centrica is a part of the old guard, and now new firms are nipping away at their customer base. The stock has gapped lower this morning, and if the recent negative trend continues it could target 123p.
Mitchells and Butlers posted a 68% jump in full-year pre-tax profits. Like-for-like (LFL) sales on the year jumped by 1.3%. The group didn’t declare a final dividend because they want to use the spare cash to focus on investments. The company issued a cautious outlook as they described the market as ‘challenging’.
Severn Trent (LON:SVT) revealed a respectable set of first-half figures. Revenue ticked up by 3.6% and profit rose by 1.4%. The interim dividend was raised by 7.9%. The company confirmed that roughly 95% of the £870 million worth of efficiencies in the first-half were achieved.
Rotork (LON:ROR) shares opened lower today after the company issued a mixed third-quarter trading update. Revenue for the period jumped by 8.4%, but group order intake dropped by 4%, and the latter rocked investor confidence. The stock has been in decline since August, and if the negative move continues it could target 250p.
EUR/USD is higher today due to the dip in the US dollar. The French business sentiment index rose to 105, topping the forecast of 104, and that helped the euro too.
The New York Stock Exchange will be closed today as the US celebrates Thanksgiving.
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