Shares in Royal Mail tumble after FedEx fails to deliver
Shares in Royal Mail sank to a fresh low on Wednesday, after US parcel firm FedEx cut its full-year outlook and warned of weakness in Europe.
FedEx Corp.
$265.84
10:59 26/04/24
FTSE 100
8,139.83
17:09 26/04/24
FTSE 350
4,470.09
16:59 26/04/24
FTSE All-Share
4,423.59
17:14 26/04/24
Industrial Transportation
4,387.46
16:59 26/04/24
International Distributions Services
271.20p
16:40 26/04/24
United Parcel Service Inc.
$147.59
10:59 26/04/24
By 1330 GMT, Royal Mail was trading down 3% at 277p. Earlier in the session it had touched 274p, a joint record low.
Investors were unnerved by the latest numbers from FedEx, which is largely regarded as a bellwether US stock. It blamed slowing global trade as it downgraded the bottom end of its earnings guidance for 2019, by $1.70 a share to between $15.50 and $16.60 a share, and announced a raft of cost saving measures.
Chief executive Frederick Smith said: "While the US economy remains solid, our international business weakened during the quarter, especially in Europe. We are taking action to mitigate the impact of this trend through new cost-reduction initiatives."
Michael Hewson, chief markets analyst at CMC Markets, said: "Royal Mail shares have slipped to a new record lows on the back of the FedEx’s poor numbers last night after the close in the US.
"Europe was a particular weak spot and the weak outlook saw UPS shares also come under pressure in aftermarket trading."
Shares in fellow American parcel firm United Parcel Service fell 4% in pre-market trading on Wednesday, while FedEx tumbled nearly 8%.