A must-read market view and Mulberry's latest crash
20th August 2018 11:30
by Rebecca O'Keeffe from interactive investor
With some major events this week, Rebecca O'Keeffe, head of investment at interactive investor, tells us what investors must watch for and comments on another bad day for Mulberry.
Global markets have opened higher ahead of this week's big events, including meetings between China and the US, the Federal Reserve minutes and the Jackson Hole symposium.
Investors will be hoping that negotiations between China and the US can start to break the trade tariff deadlock, or at the very least open the door to a summit between President Trump and President Xi, which might begin to ease the pressure.
The Federal Reserve minutes on Wednesday are likely to indicate confidence in the US economy, but it is the Jackson Hole symposium, which culminates in a speech from Fed Chair Jerome Powell on Friday, that is likely to provide most interest for investors this week.
His speech is likely to give a good indication of whether another US rate rise is on the cards for September as well as views on the dollar and emerging markets.
US equities have outperformed every other market over the past few months, and the question is whether that is likely to continue or if investors should be starting to consider whether any alternatives are becoming more attractive.
Mulberry Group has a history of profit warnings and owning their shares is not for the faint-hearted, but today's latest warning means their share price has now fallen more than 50% year to date.
Source: interactive investor Past performance is not a guide to future performance
There is no doubt that House of Fraser has compounded their problems, but the underlying UK issues are deep-rooted as they struggle against lower footfall and fewer tourists.
The company is trying to shift its focus internationally and that is helping to mitigate falls in UK demand, but the sustained problems in the UK can't be ignored.
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Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.