Anonymous ID: 67c5fc Dec. 17, 2018, 5:12 a.m. No.4345600   🗄️.is 🔗kun   >>6044

Global Stock Rally Fizzles As Europe Slammed By "Retail Apocalypse"

 

Another attempt to rally S&P futures overnight has fizzled, this time as a result of weakness in Europe and a mixed session in Asia, following a sharp decline in European retailers due to a record plunge in UK online retailer Asos Plc which collapsed after warning that Christmas shopping got off to a disastrous start, dragging its shares to a 2 year low and hitting the sector.

 

In an otherwise quiet session as traders prepare for this week's critical Fed meeting, shares in European retailer Asos plunged by over 40% after the company cut expectations for the current financial year. The last time its shares traded this low was back in 2015/16. The company said it was experiencing a “significant deterioration” in the trading month of November and that conditions remain challenging. Guidance is slashed to 15% from earlier expectation of 20-25%. As Inezfrans notes, "the move lower is absolutely astonishing."

Asos cut its full-year sales-growth guidance on a “significant deterioration” in November, blaming a high level of discounting amid economic uncertainty and low consumer confidence, which has been undermined in the U.K. by the continuing Brexit saga.

 

The rest of the Europe's big retailers including Marks & Spencer, JD Sports, Next and Boohoo all fell in London, while German giant Zalando has also joining the implosion of the retailers, falling by 15% on Xetra.

 

Commenting on Europe's "retail apocalypse", Bloomberg notes that the gloomy update from the online retailer - which competes with Amazon.com and has furnished fashions to the likes of Meghan Markle - shows that retail weakness is widespread in the runup to the holidays. Last week, Sports Direct International Plc Chief Executive Officer Mike Ashley said sales were “unbelievably bad” in November, sending the shares off a cliff.

 

"This goes against the script,” said Stephen Lienert, a credit analyst at Jefferies. “It was supposed to be bricks and mortar that’s dying and online is the future, but that headline gets ripped up today."

 

The Asos news shows that retailers can’t rely on online operations to make up for a decline in stores this year. If December doesn’t improve, the New Year may bring more profit warnings, or worse, to the sector. Meanwhile, other retailers such as Debenhams Plc and Marks & Spencer, which are in the midst of turnaround plans, may be particularly vulnerable. The U.K.’s shopping districts have already been decimated by a series of collapses, including the insolvency of department-store chain House of Fraser, which Ashley rescued earlier this year.

 

Investors in retail debt are also feeling the pain. Debenhams’ 200 million pounds of bonds due July 2021 have plummeted 35 pence on the pound since the start of the year to 64 pence, the lowest since the notes were sold in 2014, according to data compiled by Bloomberg.

 

Europe's Stoxx 600 Index dropped to session lows, down 0.5% following the Asos plunge and retail sector weakness. In contrast, mining shares are up 1% after China managed to close modestly higher after the PBOC injected a net CNY150BN in reverse repo liquidity after 36 days of silence. Among Europe's other biggest decliners are Novartis -1%, Adidas -3.4% and H&M -7.2%.

 

Earlier in the session, Asian markets began the week cautiously following the downbeat lead from Wall Street in which the three major indexes closed lower by around 2% each with the Dow plunging almost 500 points to its lowest level since early May, led

lower by shares in Apple and Johnson & Johnson, while the S&P and Nasdaq were dragged down by tech names as the sector

lagged. Australia's ASX 200 (+1.0%) was buoyed by material and mining names after MOFCOM confirmed the suspension of retaliatory tariffs on US vehicles and auto parts, while Nikkei 225 (+0.7%) initially outperformed on currency effect as the export-heavy index benefitted from the weaker JPY. Elsewhere, Hang Seng (Unch) and Shanghai Comp. (+0.1%) traded choppy and swung between gains and losses in which the indices initially dipped in the red as industrial names were again pressured in a continuation from the weak IP data last week, housing names then provided the bourses with some support amid an improvement in house prices data.

 

Futures on the Dow, S&P and Nasdaq fluctuated before dipping in the red, dragged lower by Europe's weakness.

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Although the retail numbers are important it is this anon's opinion that it is not what is driving this current reversal. The system is scared and it needs UP in a BIG way…futures say they will not get it.

regular charts to come. Need coffee

 

https://www.zerohedge.com/news/2018-12-17/global-stock-rally-fizzles-europe-slammed-retail-apocalypse

Anonymous ID: 67c5fc Dec. 17, 2018, 5:19 a.m. No.4345644   🗄️.is 🔗kun   >>5676

Reversal from last night's action. This will accelerate the issues that the system has in slowing down requests (redemptions) for your own $$. Anon warned about this weeks ago. Believe we are about to get 'real' and see the Wall St. douche-bags pulling the old tricks to keep you out and take your money.

 

The futs indicate a small gap down however it will get ugly quickly if there is no 'UP'.

Anonymous ID: 67c5fc Dec. 17, 2018, 5:28 a.m. No.4345687   🗄️.is 🔗kun

The left side, UK oil, is not a good read however US is trading and still range bound. It is currently retracing it's earlier HOD.

Asia closed and although Japan was up a bit the rest were not what was needed to juice Europe or us.

 

Europe is it's normal, irrelevant, self..jmo.

 

In short this does not look good for the entrenched system. All the hedge funds, bucket shops, institutions etc are going to be crapping pants if they do not get 'UP'.

Anonymous ID: 67c5fc Dec. 17, 2018, 6:11 a.m. No.4346000   🗄️.is 🔗kun   >>6043

>>4345979

sick of these wall st pricks taking our/your hard earned money. Have 30 years exp and seen much.

If I can use that to help just one person not get fleeced by a broken, dead system then it's worth it.

Anonymous ID: 67c5fc Dec. 17, 2018, 6:13 a.m. No.4346018   🗄️.is 🔗kun

Just remember this is NOT actionable advice for any one individual. Providing color to help you make own decisions.

The system does not give much in the way of balanced information as all they want is your money and 'UP'.

Anonymous ID: 67c5fc Dec. 17, 2018, 6:19 a.m. No.4346077   🗄️.is 🔗kun

>>4346043

They are along for the ride too. The downer for me is that there are literally 100's of people who do know what has gone on and they all decided that the paycheck was going to keep them quiet. I also understand that voicing a dissenting opinion gets you banned, fired or worse…death. Plenty of suspicious deaths going back a number of year's.

It's a mess