Markets fall sharply, Clarkson profits dip and John Wood shares slump as Sidara walks away

“Friday’s brutal sell off has continued into the new week as investors mull the prospect that the much-touted US soft landing looks like being a whole lot bumpier than markets had hoped,” says AJ Bell Head of Financial Analysis, Danni Hewson.

“Circuit breakers have been firing on Asian markets as stocks tumbled, with investors scurrying to price the impact a stalling US economy is likely to have. Friday’s jobs figures dropped like a bucket of cold water on markets already chilled by mixed earnings updates and concern about levels of spending by big tech companies on AI plans.

“London markets haven’t escaped the Monday meltdown with just a handful of companies on the FTSE 100 opening on the front foot and a smorgasbord of sectors losing ground, including miners and oil giants.

“For the more domestically focussed FTSE 250 the whisper of US recession fears has bumped up against concern about the level of violence that’s been seen in some UK towns and cities over the weekend.

“Horrendous scenes of hotels on fire and streets littered with debris are likely to impact consumer confidence and footfall levels, which are crucial to retailers and hospitality venues.

“Then there’s the potential insurance claims stemming from the damage inflicted by flying bricks and Molotov cocktails.

“For a UK economy struggling to find growth this chapter, particularly at this time, is a massively unwelcome one.

Clarkson

“Shipping services provider Clarkson dropped its own pebble in the volatile pond as it revealed a drop in first half profits stemming from geo-political tensions in the Middle East.

“But its outlook was considerably brighter with the broker maintaining its full year forecast and hiking its dividend as it pointed to strong forward orders.

“The tonne-mile, which represents how much it charges to get one tonne of goods one mile, is expected to rise 5.4% over the second half of the year as demand picks up.

“But with so much global unpredictability investors are wary.

John Wood

“Disappointment coupled with uncertainty sent shares in John Wood Group plunging a whopping 37% as it updated markets that an anticipated takeover by engineering firm Sidara wouldn’t go ahead.

“The Dubai company had been wooing John Wood for months, with three offers failing to win over the board of the Scottish company.

“But a couple of extensions later Sidara is walking away. The global outlook has shifted, market volatility has gripped investor sentiment and Sidara might well be breathing a sigh of relief that the lengthy courtship ended as it did, when it did.

“Companies are battening down the hatches as they consider the state of the world and prepare to ride out the potential storm.”

These articles are for information purposes only and are not a personal recommendation or advice.