By Connor Campbell, Financial Analyst, Spreadex
After yesterday’s chunky rebound the European markets were far more mixed this Wednesday morning.
Having briefly grazed 7400 the FTSE once again was in retreat, falling 15 to 20 points after the bell. The UK index has been unable to substantially break through, and hold above 7400 in almost a fortnight, investors struggling to justify such a climb when macro-nightmares like the tensions between the US and North Korea are still unresolved.
Not all of the FTSE’s losses were macro-focused, however – well, at least not directly. Much of that drag came from Martin Sorrell’s WPP (LON:WPP), which plunged 8% this Wednesday after the advertising giant was forced to cut its full year forecasts. The firm now expects annual revenue and net sales growth of between zero and 1%, down from the 2% stated in March (and the 3% suggested before that), leaving it on track for its worse year since the 2009 ad recession. That’s because reduced client spending, itself thanks to macro-economic uncertainty, meant net sales in the first half of 2017 fell by 0.5%, far worse than the 0.6% to 0.7% growth anticipated by analysts, including an especially alarming 1.7% drop in Q2 net sales.
Over in the eurozone the DAX and CAC were dealing with the latest round of flash PMIs. For the region as a whole the manufacturing reading is set to slip from 56.6 to 56.3 month-on-month, while the services figure is forecast to remain unchanged at 55.4. The German and French indices are too bothered about that, however, rising 0.3% and 0.1% respectively as the euro continues shed some of its recent growth against the dollar.
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