General Electric Share Price Falls 7%
Low volatility has returned to US stock markets with both the major indices having another boring session. Under the covers, however, General Electric (GE) (a constituent of the Dow) fell 7.2%, its largest one day fall in over eight years. The falls came after the company announced a turnaround plan that involved cutting the dividend and trimming the size of the board. The Nasdaq 100 was also flat although Tesla (TSLA) had a 4.1% bounce after a month of declines. Despite today’s bounce, the stock is still down 10% for the month as investors worry that the company’s production schedule for the new Model 3 won’t be achieved.
The British pound has been falling this week as the Brexit process continues to be messy. Members of Parliament can’t agree on whether the country should go with a ‘soft’ or ‘hard’ Brexit. Confidence in Theresa May appears to be waning and there is a risk that she could face a leadership challenge.
Silver prices had a strong session overnight jumping 1.2% to US$17.05 per ounce. Gold was also higher although it was up only 0.46%.
Today, Chinese industrial production and retail sales data will be released. These are important indicators of the health of the Chinese economy. ASX 200 futures are pointing to a lower open this morning, down 22 points in overnight trading.
– Chinese Industrial Production & Retail Sales 1:00pm AEDT
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This article was written by William O’Loughlin – Investment Analyst, Rivkin Securities Pty Ltd. Enquiries can be made via email@example.com or by phoning +612 8302 3633.