After a poor start to the week as investors grew tired of waiting for the next stimulus initiative from China to boost its economy, Asia stocks rallied on Tuesday as investors got some of the news they wanted.
Danni Hewson, head of financial analysis at AJ Bell, said: “Reports suggested Beijing will provide more support, albeit details remain thin on the ground at present. It was enough to lift the Hang Seng by 4% and send investors scrambling to own shares in real estate, basic materials, technology and financial sectors.
“Good news from China always makes its way to the UK market in a flash, with commodity producers riding high including a 4% gain from Anglo American and Rio Tinto. But that wasn’t enough to lift the FTSE 100, which remained stubbornly flat as gains from miners were offset by weakness from utility companies.
“If the hottest June on record can’t get the punters to the seaside and spending money on Brighton Pier, it’s hard to know what kind of sales catalyst the leisure operator needs to do well. Brighton Pier Group issued a profit warning, blaming the cost-of-living crisis for weak trading, along with ongoing cost pressures. A washout July hasn’t helped, leaving investors shaking their heads, wondering why they bothered in the first place as the share price dived by a third on the news.
“Surprisingly, Brighton Pier didn’t get the wooden spoon award. That went to Wandisco whose shares crashed 96% after the suspension on its shares was lifted following a potential fraud and a heavily discounted equity raising.”
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