Australian listed stocks with large business exposures to the UK are getting hammered in trade today.
While the ASX is off 3.5%, the Nikkei in Japan more than 7% and UK stocks expected to open with losses close to 7.5% stocks like the NAB’s former UK operations CYBG Plc, BT Investment Management, and Henderson group are all down between 13-15% on the day.
AS London wakes up, CYBG, which is the NAB’s is the holding company for former NAB subsidiary Clydesdale bank is coming under a little more pressure and has slipped 15.5%. That’s natural given the bank, and the company more broadly, will be at the very epicentre of any weakness in the UK economy and its housing market.
BT Investment Management, which has a big UK investment management in the UK has fallen sharply as well. Again traders are simply saying that the company will take an earnings hit from the uncertainty that is likely to hit the markets and the economy in the months ahead. It’s a similar story with Henderson although the stong rally in that stock in recent week’s may have contributed to the selling.
Elsewhere Westfield, which runs shopping centres in the US, UK and Europe is down 6% and Iress, a company which provides support infrastructure to the global funds management industry across the commonwealth and has a business in the Uk is down 7%.