Mining shares fall while Admiral slips after TV criticism of Confused.comLeading shares hit a near three month low, on continuing worries about Greece, rising bond yields and talk of a US rate rise.In a broad based sell-off the FTSE 100 fell 36.24 points to 6753.80, its lowest level since 13 March. European markets were also lower, with Germany’s Dax down 0.7% and France’s Cac falling 0.19%. On Wall Street, the Dow Jones Industrial Average was up around 25 points by the time London closed, as better than expected job openings figures added to Friday’s non-farm payroll numbers to ease concerns about weakness in the US economy. But gains were limited, since a strong economy inevitably suggests to investors a probable rise in interest rates this year.Each passing day sees equity markets suffer further losses, as investors struggle to find reasons to remain within the asset class. It looks as if the rout in developed equities is spreading to emerging markets, with concerns about slowing growth combining with a rising US dollar. And it wouldn’t be a complete day in global markets these days without some Greece news; officials at the European Commission have run their red pen over Athens’ latest homework and given it an F.Both sides have merely taken to reiterating their positions and then digging in further. The damage being wrought to the eurozone economy with all this uncertainty is exemplified by eurozone indices like Germany’s Dax, where we daily witness the erosion of gains engendered by Mario Draghi’s QE programme. Confidence is being sapped, imperilling the fragile recovery in the region. Poundland is due to release its 2015 preliminary results (March year-end) on Thursday 18 June. Noting recent UK consumer market data and the strength of sterling versus the euro, we have reappraised our financial forecasts for the group on a cautionary basis; note – we have already lowered our 2016 estimates for Poundland on 30th March 2015, reflecting slower fourth quarter trading and precautionary comments on the potential for sterling strength to negatively impact EBITDA by £4m.Since that time we have observed a number of factors which lead us to once again review our forecasts with a downward bent. These factors are: Continue reading...
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