Easyjet drops despite 15% increase pre-tax profit
Compass Group topped the FTSE leader board, bucking the broader market trend thanks to impressive results. However, the market wasn’t so impressed with Easyjet’s results. As the low-cost airline reported that Brexit uncertainty had not hit led to a drop in demand, with a 15.6% increase in annual pre-tax profits the share price dived over 5%. This is most likely because investors are focused on rising costs, not encouraging for a low-cost airline, which by its very nature must keep costs to an absolute minimum. Costs after fuel being stripped out rose by 5.3%, a concern as we head into the seasonally more challenging winter months.
Oil sheds 4%
Oil plummeted across the session on Tuesday, falling deeper into bear market territory. Concerns of supply outstripping waning demand pulled the black gold 4% lower. Today’s decline saw oil hit its lowest level since October 2017 as it reaches declines of 30% since its four year high just six weeks ago.
Fears of slowing global growth are fuelling concerns over global demand, just at a time when Saudi Arabia, Russia and the US continue to ramp up production. The most recent Baker Hughes rig count increased by 2 last week, taking the number of rigs to 888, the highest number since March 2015. With oil trading heavily lower, the energy sector pipped tech stocks as the worst performer on the S&P.
Bitcoin bloodbath
After months of steady trading on Bitcoin, the past few sessions have seen volatility return with vengeance. Bitcoin dropped 7% today, extending Monday’s 14% losses as concerns following a hard fork in Bitcoin cash The price has rebound off $4411 however remains in a bear trend and firmly below its 200 day moving average.