LVMH Shows How FX Swings Threaten Earnings, Pose Risk for Market

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 43 sec. here
  • 17 min. at publisher
  • 📊 Quality Score:
  • News: 72%
  • Publisher: 50%

Business News

Consumer Goods,Retail,Consumer Discretionary

Months of wild currency swings are hitting company profits, threatening stock markets that are priced for perfection.

--

Currency swings “could potentially be the difference between a positive earnings season and a negative earnings season,” said Michael Field, European strategist at Morningstar. Companies are likely to remain wary of yen appreciation and may also lower earnings guidance, said JPMorgan strategists including Rie Nishihara.

Wall Street economists expect that a win for Donald Trump in next month’s US election would support the dollar, as his trade policies would potentially drive up inflation and interest rates. A prolonged trade war would also weigh on global risk sentiment, further supporting haven demand for the currency.

In Europe, several corporates have already raised currency-related losses at the start of the earning season, including warnings from British American Tobacco Plc and rival Imperial Brands Plc.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 83. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Premarket: Global stocks bask in China stimulus glowYen swings higher on Ishiba win
Source: globebusiness - 🏆 31. / 66 Read more »