The FTSE has opened marginally down this morning, led south by miner Fresnillo and Reckitt Benckiser. Rolls Royce shares are also in the red this morning. Metro Bank was in focus as its shares dropped on news that Fitch had downgraded the bank. Ratings are critical for the profitability of bank and this was not good news for Metro.
Metro Bank shares took a hit last week following its failed £200 million bond offer. Shares sank to 175 on the news and have recovered slightly since the start of this week. A number of activist investors, among them US fund Elliott Advisers, are known to be looking at Metro Bank as a possible turnaround or break up proposition.
Australia cuts rates
The Royal Bank of Australia cut rates to 0.75% which did not surprise analysts but has them worried about how low Australia can now go. RBA Governor Lowe said in his speech that the Australian economy was at a turning point and that further easing was possible. Australia has been seeing some positives, like rising house prices and wage growth, but it seems the RBA was not feeling in positive mood.
Slew of economic data ahead
There is plenty of economic data out today with UK manufacturing data followed by the Eurozone CPI. The US reports its Purchasing Managers Index this afternoon, which will also be closely watched by investors trying to gauge the health of the major economies. Concerns remain about the health of the global economy and whether China and the US are going to start to slow down in tandem.
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