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.
This communication is provided for information purposes only, and is not a solicitation or inducement to buy, sell, subscribe, or underwrite securities or units. Investors should seek advice from an Independent Financial Adviser or regulated stockbroker before making any investment decisions. Progressive Equity Research Ltd (“PERL”) does not make investment recommendations.
Opinions contained in this communication represent those of PERL and/or our affiliates at the time of publication and PERL does not undertake to provide updates to any opinions or views expressed. PERL does not hold any positions in the securities mentioned in this communication, however, PERL’s directors, officers, employees, contractors and affiliates may hold a position, and/or may perform services or solicit business from, any of the companies or related securities mentioned.
Any prices quoted in our research are as at the previous day’s close.