The decline in miners, packaging groups and retailers on the UK stock market would suggest investors are once again worried about the outlook for the global economy. Markets have stalled over the past few days, with the latest corporate updates failing to move the dial.
Russ Mould, investment director at AJ Bell, said: “A lot of companies are keeping their heads above water but there remain plenty of headwinds to cloud the outlook. The prospect of another round of interest rate hikes in the US and Europe will further increase the cost of borrowing, coinciding with fears that banks are going to have stricter lending policies following the recent Silicon Valley Crisis. Tighter lending could feasibly lead to weaker economic activity.
“Later today we’ll get an update on US jobless claims, manufacturing activity and US home sales, helping to give a more up-to-date picture of the state of the country.
“Among the UK stocks reporting, WH Smith slipped 2.5% despite reporting better than expected first-half results and a good start to its second half. Dunelm’s shares barely moved – while it continues to grow sales, the retailer has guided for a lower gross margin in the second half of its financial year due to planned sale events.”