- A recent report has highlighted the current wages in the UK are lagging far behind soaring inflation as living standards suffered the biggest slump since 2013.
- Experts have warned that the slow economic growth and the latest jobs data in February could lead to stagflation.
London’s blue-chip FTSE 100 index closed on a negative note on Tuesday at 7,577 points, down a 0.55%, after a report revealed that real wages in the UK are lagging far behind soaring inflation as living standards are seeing the biggest slump since 2013. According to the Office for National Statistics, the average earning stood at 4.1%, excluding bonuses from December 2021 to February 2022, but dropped 1.3% when adjusted for inflation. Experts have warned that the slow economic growth and the latest jobs data in February can lead to stagflation.
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However, the US stock market opened on a positive note after the latest consumer inflation rose to 8.5% in March exacerbated by the Russia-Ukraine war and overall higher prices.
Let us look at 4 FTSE-listed stocks that are in the spotlight due to various reasons.
Asos Plc (LON: ASC)
Asos Plc is a global online fashion and cosmetic retailer that offers over 85,000 products that are sourced from over 850 best local and global third-party brands.
The company announced that it may lose £14 million because of suspending its Russian operations, which would also cut revenue growth by 2%, as the market previously accounted for about 4% of its business. The online fashion retailer reported a 1% increase in total revenue to £2,004.1 million in H1 2022, from £1,975.9 million in the same period of 2021 and its adjusted profit before tax stood at £14.8 million, down from £112.9 million in H12021. Sales in the UK grew by 8% to £895.5 million, but the company said it missed out on sales for events in January.
With a market cap of £1,611.04 million, the Main Market-listed company’s share value has depreciated by -70.25% over the last one year and its year-to-date return stands at -34.80% as of 13 April 2022. Asos Plc’s shares were trading at GBX 1,560.00, down by 3.23% at 8:05 AM (GMT), as of 13 April 2022.
EasyJet Plc (LON: EZJ)
EasyJet Plc is an international low-cost airline group that operates domestic and international scheduled services on over 1,000 routes in over 30 countries. It is the seventh-largest airline globally.
The airline company reported that its summer booking in the last six weeks reached pre-pandemic levels. The company said that the first half losses have reduced year-on-year, and it has ramped up its capacity throughout the quarter, operating at 80% of the 2019 capacity in March alone. The low-cost airline group expects to report a loss before tax in the range of £535 million and £565 million for the six months ended 31 March 2022.
With a market cap of £4,187.25 million, the FTSE 250-listed company’s share value has depreciated by -41.74% over the last one year and its year-to-date return stands at -2.27% as of 13 April 2022. EasyJet Plc’s shares were trading at GBX 544.40, down by 1.45% at 8:05 AM (GMT), as of 13 April 2022.
Power Metal Resources Plc (LON: POW)
Power Metal Resources Plc is a metals exploration and development company that focuses on projects, including gold exploration in North America, and Australia, and base metal exploration in Africa.
The company reported that its subsidiary First Development Resource (FDR) has completed a comprehensive geophysical desktop study for its flagship Wallal gold project in Australia and it is planning to list on the London capital markets in Q3 2022.
In a separate report, the company announced updates of its 49.9% owned joint-venture subsidiary New Ballarat Gold Corporation Plc, which focuses on the Victorian Goldfields of Australia. It said that the first phase of diamond drilling at Mt Linton and O’Loughlin’s prospects is now completed.
With a market cap of £19.80 million, the FTSE AIM All-Share-listed company’s share value has depreciated by -40.53% over the last one year and its year-to-date return stands at -8.16% as of 13 April 2022. Power Metal Resources Plc’s shares were trading at GBX 1.35, at 8:05 AM (GMT), as of 13 April 2022.
Shell Plc (LON: SHEL)
The global energy and petrochemical company has recently agreed with German utility company Uniper to produce blue hydrogen at Uniper’s Killingholme power station site in the east of England with a capacity of up to 720 megawatts, which can be used for the transport, power, and decarbonise industry.
With a market cap of £163,204.66 million, the FTSE 100-listed company’s share value has appreciated by 55.10% over the last one year and its year-to-date return stands at 34.05% as of 13 April 2022. Shell Plc’s shares were trading at GBX 2,168.50, up by 14% at 8:05 AM (GMT), as of 13 April 2022.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.