UK stocks had their worst day since May on Thursday as investors began to fret again over the global economic recovery. US futures pointed lower and overnight trading in Asia was weak after the Chinese central bank indicated its economy needed extra liquidity support.
The SE Composite index dropped 0.9% and the Hang Seng fell nearly 3%, while similar losses were seen in Japan with the Nikkei 225 also losing almost 1%.
In Europe the European Central Bank agreed a new inflation target of 2% and said it would allow some ‘overshoot’, marking the biggest shift in policy since 2003.
At 12.45m the FTSE 100 index of leading shares was down 140 points or 2% at 7,011 points, pulled lower by weakness in mining shares, financials and house builders.
CORPORATE ROUND UP
In a trading update ahead of its half year results to 30 June, housebuilder Persimmon (PSN) said revenues were 55% ahead year-on-year to £1.84 billion, driven by strong demand for homes across the UK. Shares were the worst performers in the FTSE, dropping 4.9% to £29.18.
Priority reviews are given where a medicine has significant advantages over available options by demonstrating safety or efficacy improvements, preventing serious conditions, or enhancing patient compliance. The shares dipped 0.8% to £85.92.
The company said it now expected full year earnings before interest, taxes, depreciation, and amortisation to be ahead of consensus at between £850 million and £900 million. Having been the best performers in the FTSE during the morning, shares gave up 0.4% to £18.01.
The company said it had made a strong start to the new financial year with sales remaining significantly above pre-pandemic levels. The shares dropped 2.6% to 563p.
Luxury watch sales increased by 16% during the period, representing 87.1% of the group’s revenue.
The company said trading had been strong since the year end and confirmed guidance for 2022 for revenues to be between £1.05 billion and £1.1 billion, up 16%-to-21%. The shares dropped 1.2% to 845p.
For the quarter to 30 June 2021, £12.7 million of new annual rent was signed, with market lettings 9.3% ahead of March 2021 estimated rent value.
The company said 86% of rent was collected in the quarter, surpassing the pace of collections seen in all four previous quarters. The shares dipped 0.2% to 737p.
For the full year to 31 March 2022 the company said it expected to deliver low double-digit to mid-teens like-for-like revenue growth and forecast a return to an adjusted operating profit margin around 2019/20 levels. The shares dropped 4.3% to £10.34.
The company declared a final dividend payment for fiscal 2021 of 4.9p per share, and said it was on track to deliver a fiscal 2022 dividend target of 10.45p per share, up 6.6% from FY21. The shares dipped 0.3% to 308.5p.
A full list of FTSE 100 movers can be seen HERE