Wall Street sell-off weighs on FTSE

Wall Street sell-off weighs on FTSE

Adam Vettese, analyst at investment platform eToro, says: “After two back-to-back sell offs on Wall Street, we’ve seen some of the negative sentiment being mirrored this side of the Atlantic, with the FTSE 100 suffering a sharp drop in early trading. The index had clawed back some of the losses by the afternoon in London, though, with support coming from surprisingly soft eurozone inflation data, solidifying expectations for an ECB rate cut in the summer.

“The rough start to the second quarter stateside is compounded by an SEC filing from technology bellwether Intel revealing a $7 billion operating loss by its chip manufacturing business. The filing contains details of a reporting structure that includes a new segment, Intel Foundry, which deals with semiconductor development and manufacturing. In a press release alongside the filing, the company said ‘Intel Foundry’s operating losses are expected to peak in 2024.’ Intel shares were down more than 5% in early trading on Wall Street, after shedding more than 1% on Tuesday.”

Appetite returning for Hilton Food Group products as results come in line with expectations

Adam Vettese, analyst at investment platform eToro, says: “Recovery has been a bit of a slog for Hilton Food Group but they seem to be turning the corner with a little more meat on the bone in this latest set of results. Profits are in line with expectations as cost pressures continue to ease, runaway inflation caused big problems for the firm with raw material prices going through the roof and high rates hiking up financing costs. The company did well to consolidate during this period, adjusting to changing tastes and preferences, particularly in the meat alternatives market. 

“Hilton Food Group will be eagerly awaiting the first rate cut if it comes in June to take some more pressure off but despite the challenging conditions have still managed to raise the dividend by 7.7%. Shares have had a solid start to the year but there is still some way to go to reach the 2022 high a little over 40% away, investors may well see some value in a recovery play here given its relatively low prices against historic multiples.”