Stocks were mostly lower in Europe on Friday morning. A reduction in Germany’s trade surplus has added to concerns of a slowdown in the continent’s biggest engine of growth. Greece’s future hangs in the balance once again as ministers meet in Bratislava to discuss the handout of its next bailout tranche. North Korea’s claim that it tested a mini nuclear warhead didn’t help sentiment.
The FTSE 100 was narrowly in the red with investors seeking the relative safety of defensive utility company shares like Severn Trent (LON:SVT), with industrials Ashtead Group (LON:AHT) and Bunzl (LON:BNZL) leading the decliners.
The UK trade deficit narrowed to -£11.8bn in July, helped by a drop in the value of Sterling which makes British goods relatively more attractive abroad and imports less attractive at home. The data contrasts with the drop in Germany’s surplus where a less favourable exchange rate with the UK will have exacerbated the slowdown in demand for German goods from Asia.
Shares of JD Wetherspoon were atop the FTSE 250 index after the pub company reported record sales and profit before tax. If there were a desire to pick holes in generally strong results it would be the fall in operating margins and losses incurred from closing underperforming pubs. New minimum wage laws have contributed to an increase in staff costs.
US stocks look set for a lower start with the downturn in Apple shares (NASDAQ:AAPL) following the release of the iPhone 7, playing on the minds of investors.
USA pre-opening levels
S&P 500: 5 points lower at 2,176
Dow Jones: 42 points lower at 18,437
Nasdaq 100: 14 points lower at 4,790
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