It’s May 1, and the non-vacation stock markets started the month with a bad fall, building on last night’s disappointments on Wall Street.
Wall Street had its best month since 1987 in April – thanks to the timing of the market bottom rebound in March – and easing blockages is the subject of discussion in major economies. Yet corporate profits reflect the grim reality of the costs borne by businesses.
In Japan, the Nikkei fell 2.8%. The FTSE 100 should experience a shake when opened in a few minutes. Most other European markets are closed for the holidays, but the following data based on spreadbetting activity gives a rough indication of the sentiment:
US tech giants Amazon and Apple both disappointed investors last night. Amazon saw a massive 26% increase in revenue, but there was a cost: $ 4 billion, to be precise.
Meanwhile, Apple declined to give guidance for the current quarter – perhaps understandable in these circumstances, but not reassuring for investors.
The UK, Royal bank of scotland reported operating profit before tax of £ 519 million and attributable profit of £ 288 million.
However, the bank also took a big write-down to account for the hard hit of the British recession, but certain: it depreciated £ 802 million eight times more in proportion to its loan portfolio than last year. Some £ 628 million is directly linked to the coronavirus. More details to follow.
Ryanair said it expects some flights to start again in July, but with only half as many passengers in the July-September period as expected.
- 9:30 am BST: Consumer Credit in the United Kingdom – Bank of England (March)
- 9:30 am BST: UK Manufacturing Purchasing Managers’ Index (PMI) (April)
- 2:45 p.m. BST: American manufacturing PMI final reading (April)