ASOS swings to loss, Spectris reiterates FY guidance

London pre-open

The FTSE 100 was being called to open 16.2 points stronger on Wednesday after closing out the previous session 0.24% higher in the previous session at 6,936.74.

Stocks to watch

Online fashion retailer ASOS announced a review of its business after swinging to a full-year loss and said it would write off up to £130.0m in excess stock amid the cost-of-living crisis.

The company posted a pre-tax loss of £32.0m on Wednesday from a profit of £177.0m and said trading at the start of the new fiscal year had been volatile. ASOS also guided for a loss in the first half driven by "elevated" markdown to clear stock resulting from the change in commercial model.

Electronics manufacturer Spectris reiterated full year like-for-like sales growth guidance on Wednesday, citing "continued strong demand" for its products.

Spectris said sales were up 10% on a like-for-like basis in both the third quarter and the year to date, underpinning expectations for "high single digit organic sales growth" for the full year.

Newspaper round-up

Fracking caused an earthquake every day at the UK's only active site at Preston New Road in Lancashire, analysis has found. Between 2018 and 2019, the site near Blackpool was responsible for 192 earthquakes over the course of 182 days , according to analysis of House of Commons Library data by the Liberal Democrats. – Guardian

The number of people who aren’t working because of caring commitments is the highest since May 2020, with the last year marking a sustained increase in stay-at-home parents and carers after three decades of decline, new analysis from the Guardian reveals. The figures are a stark warning that at a time of record employment vacancies and skills shortages, families are being "priced out and shut out of work" said Labour’s deputy leader, Angela Rayner. – Guardian

Netflix has added subscribers for the first quarter in three to halt the streaming decline trigged by the cost of living crisis. Paid subscribers using the service rose to by 2.4m to 223.1m in the third quarter of 2022. Revenues grew 6pc year-on-year to $7.9bn. Shares rose 15% in after hours trading in New York as investors cheered the unexpectedly strong results. – Telegraph

The boss of Goldman Sachs warned yesterday that there was a "good chance" of recession in the United States and confirmed an overhaul of the bank's structure after its profits almost halved. A robust rise in sales from its bond trading division helped partially to offset a 57% drop in revenue from investment banking amid a sharp slowdown in global dealmaking. – The Times

HSBC misled consumers with its bus-shelter posters proclaiming its green credentials at the time of the global climate-change summit last autumn, the advertising regulator has ruled. Britain’s biggest banking group "omitted material information", the Advertising Standards Authority has judged, ordering HSBC not to show the ads again. – The Times

US close

Wall Street stocks ended the session higher on Tuesday as Q3 earnings continued to roll in.

At the close, the Dow Jones Industrial Average was up 1.12% at 30,523.80, while the S&P 500 advanced 1.14% to 3,719.98 and the Nasdaq Composite saw out the session 0.90% firmer at 10,772.40.

Reporting by Iain Gilbert at Sharecast.com