Market Prognosis

A concise summary of the major macro events of the past 24 hours, and selected UK company-specific news.

August 17, 2023

Fears of China slowdown & higher yields push risk assets lower

Macro & Overnight

Concerns have heightened over the potential for a Chinese deflationary spiral. Meanwhile, post the recent Fed minutes, US bond yields indicate a higher-for-longer outlook. Japan’s exports fell due to China’s lower-than-expected demand for manufactured products.

Crude oil is weakening while the DXY continues its multi-week rally. These factors combine to push markets into risk-off mode.

UK Company News

BAE has announced a $5.6bn US acquisition of Ball Aerospace. 

Robinson, the plastic and paperboard packaging manufacturer, said its revenue was down 4.3%, gross margin in line, delivering a loss before tax of £0.9m. It has net debt of £9.0m. it is now seeing more new business activity with existing and potential new customers. It expects operating profit in 2023 to be marginally ahead of 2022 and in line with current expectations.

Prognosticator 

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