Burberry Stock Slides After Another Tough Quarter, USD Slumps Against a Number of Currencies
October 15, 2015 6:55 am
Worse than expected results from US heavy weights Wal-Mart and JP Morgan caused US stocks to end in negative territory, with the Dow slipping 157 points to close at 16924 while the S&P500 lost 9 points to close at 1994. Asian stocks, however, bucked the trend to rise to two month highs after poor US economic data compounded thoughts that a US rate hike will be off the cards for 2015.
The Euro was trading near $1.1474 after rising as high as $1.1489 overnight, its highest level since Aug. 26. The Dollar bought 119.01 Yen after hitting a five week low of 118.56 Yen. The Australian and New Zealand Dollars rallied against the US Dollar, with the Kiwi flying to a three month high of $0.6846. Sterling traded near a three week high of $1.5495 hit overnight, when it climbed 1.5% on better than expected UK employment data.
U.S. crude was down 0.3% at $46.51 a barrel, although a weaker Dollar helped slow its decline. Brent fared a little better, edging up 0.2% to $49.30 a barrel. Spot Gold was trading around the $1180 level.
Within the equity space, Burberry has moved to cut costs after sales slowed in the second quarter as the luxury market, particularly for Chinese customers, became “increasingly challenging”. Total sales were almost flat at £1.1bn in the six months to 30 September, with retail sales up 3% to £774m at the reported level and 2% underlying, but wholesale down 3% and licensing down 18% at the underlying level. The main cause of the belt tightening is that Hong Kong retail sales decelerated further in second quarter, leading a mid-single-digit percentage decline across the Asia Pacific region. Burberry stock is down 11% in early trade at 1270p per share.
Worse than expected results from US heavy weights Wal-Mart and JP Morgan caused US stocks to end in negative territory, with the Dow slipping 157 points to close at 16924 while the S&P500 lost 9 points to close at 1994. Asian stocks, however, bucked the trend to rise to two month highs after poor US economic data compounded thoughts that a US rate hike will be off the cards for 2015.
The Euro was trading near $1.1474 after rising as high as $1.1489 overnight, its highest level since Aug. 26. The Dollar bought 119.01 Yen after hitting a five week low of 118.56 Yen. The Australian and New Zealand Dollars rallied against the US Dollar, with the Kiwi flying to a three month high of $0.6846. Sterling traded near a three week high of $1.5495 hit overnight, when it climbed 1.5% on better than expected UK employment data.
U.S. crude was down 0.3% at $46.51 a barrel, although a weaker Dollar helped slow its decline. Brent fared a little better, edging up 0.2% to $49.30 a barrel. Spot Gold was trading around the $1180 level.
Within the equity space, Burberry has moved to cut costs after sales slowed in the second quarter as the luxury market, particularly for Chinese customers, became “increasingly challenging”. Total sales were almost flat at £1.1bn in the six months to 30 September, with retail sales up 3% to £774m at the reported level and 2% underlying, but wholesale down 3% and licensing down 18% at the underlying level. The main cause of the belt tightening is that Hong Kong retail sales decelerated further in second quarter, leading a mid-single-digit percentage decline across the Asia Pacific region. Burberry stock is down 11% in early trade at 1270p per share.
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