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IPFS News Link • Stock Market

Global Stock Rally Fizzles As Europe Slammed By "Retail Apocalypse"

• https://www.zerohedge.com by Tyler Durdan

In an otherwise quiet session as traders prepare for this week's critical Fed meeting, shares in European retailer Asos plunged by over 40% after the company cut expectations for the current financial year.  The last time its shares traded this low was back in 2015/16. The company said it was experiencing a "significant deterioration" in the trading month of November and that conditions remain challenging. Guidance is slashed to 15% from earlier expectation of 20-25%. As Inezfrans notes, "the move lower is absolutely astonishing."

Asos cut its full-year sales-growth guidance on a "significant deterioration" in November, blaming a high level of discounting amid economic uncertainty and low consumer confidence, which has been undermined in the U.K. by the continuing Brexit saga.

The rest of the Europe's big retailers including Marks & Spencer, JD Sports, Next and Boohoo all fell in London, while German giant Zalando has also joining the implosion of the retailers, falling by 15% on Xetra.


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