European stocks dive, Aston Martin’s funding fears, Uniper’s big warning and Royal Mail faces strike disruption

“Stock markets were in a terrible mood across Europe, with the FTSE 100 down 1.7%, the CAC 40 dropping by 2.3% and the Dax falling 2.5%. There really is a lack of good news for investors to cling onto, and the near-term outlook looks bleak which is shattering confidence,” says Russ Mould, Investment Director at AJ Bell.

“The list of risers on the FTSE 100 won’t take investors long to read – there is only one stock, being Bunzl. The provider of products that companies need to do business but not actually sell to customers nudged ahead 1.2% after upgrading its guidance for the year.

“Investors hit the brakes on Aston Martin’s shares, which dived 9% after a report implied it was seeking to raise more money to safeguard its future. The company has been a disastrous investment since joining the stock market and anyone looking to back the company now would no doubt want a great deal to compensate for the risks involved.

“A nasty profit warning from Germany energy group Uniper goes to show how Russia’s invasion of Ukraine continues to have far-reaching consequences.

“The company has been forced to buy energy in the market after Gazprom delivered less than half of its contractually committed volumes of gas over the past fortnight.

“Uniper is in a pickle as it can’t yet pass on these higher costs, so there is significant financial pressure on the business.

“It’s no wonder its share price has dived 16% on the news, extending a year-to-date loss to 67%. One might expect to see Uniper go through a very difficult period in the days and months ahead.

“Another company which faces disruption is Royal Mail after its managers voted to strike over a pay dispute.

“Britain is facing the summer of strikes as workers demand fairer treatment in an environment where the cost of living is soaring.

“Transport workers have already caused havoc to the rail network, and it seems more industries could follow suit unless they get a better pay deal. Teachers, nurses and junior doctors are all potential candidates to join the picket lines.

“Royal Mail is no stranger to strikes but it could do without more disruptions to its business, given how group revenue growth ground to a halt in its most recent financial results, and profit fell.”

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