📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Metro Bank Shares Edge Higher As Raiders Circle

Published 10/01/2019, 05:06 AM
Updated 07/09/2023, 06:31 AM

The FTSE 100 has opened marginally down this morning, led south by miner Fresnillo (LON:FRES) and Reckitt Benckiser (LON:RB). Rolls-Royce (LON:RR) 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 (LON:MTRO) 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.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.