China’s Figures Hit Eastern Markets, Asos Share Price Plummets
September 16, 2014 7:38 am
Negative Numbers out of China over the weekend have continued to effect markets, with no indication that the Chinese government intends to change its current economic course. Premier Li Keqiang seems determined to reduce China’s debt, stating last week that China now relies on strong reforms rather than strong stimulus. The current economic path being pursued by China marks a seismic shift away from former policy, with the previous response to a slowing economy being to create further loans. While in the long-term Premier Li’s path may help to reduce China’s weighty debt burden, in the short-term indices are suffering; the Shanghai Composite closed down by 1.82% and the Hang Seng closed down by 0.91%
Shares in Asos plc. are trading around 10% lower this morning, despite the online clothing retailer reporting a 33% year-on-year increase for the three months from June to August. The growth comes notwithstanding its main warehouse suffering a fire causing sales losses of up to £30 million – the company has managed to claim insurance payouts. Asos reported sales in the three-month period of £98.5 million in the UK and £141.7 million abroad. However, CEO Nick Robertson has warned of flat pre-tax profit for the coming year, due in part to planned infrastructure spending.
Alibaba is set to raise the share price for its upcoming IPO to the $66-$68 range, up from the previously mooted $60-$66 range. The float on the NYSE is due to be priced late on Thursday and to start trading on Friday.
In Europe and the USA markets will be focussing on the release of minutes from the Bank of England’s Monetary Policy Committee tomorrow, as well as the US Federal Reserve’s Interest Rate Decision and subsequent Monetary Policy Statement and Press Conference.
Negative Numbers out of China over the weekend have continued to effect markets, with no indication that the Chinese government intends to change its current economic course. Premier Li Keqiang seems determined to reduce China’s debt, stating last week that China now relies on strong reforms rather than strong stimulus. The current economic path being pursued by China marks a seismic shift away from former policy, with the previous response to a slowing economy being to create further loans. While in the long-term Premier Li’s path may help to reduce China’s weighty debt burden, in the short-term indices are suffering; the Shanghai Composite closed down by 1.82% and the Hang Seng closed down by 0.91%
Shares in Asos plc. are trading around 10% lower this morning, despite the online clothing retailer reporting a 33% year-on-year increase for the three months from June to August. The growth comes notwithstanding its main warehouse suffering a fire causing sales losses of up to £30 million – the company has managed to claim insurance payouts. Asos reported sales in the three-month period of £98.5 million in the UK and £141.7 million abroad. However, CEO Nick Robertson has warned of flat pre-tax profit for the coming year, due in part to planned infrastructure spending.
Alibaba is set to raise the share price for its upcoming IPO to the $66-$68 range, up from the previously mooted $60-$66 range. The float on the NYSE is due to be priced late on Thursday and to start trading on Friday.
In Europe and the USA markets will be focussing on the release of minutes from the Bank of England’s Monetary Policy Committee tomorrow, as well as the US Federal Reserve’s Interest Rate Decision and subsequent Monetary Policy Statement and Press Conference.
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