Central banks around the world are dancing on a tightrope, and must use all their capacities to fight against inflation, which is pushing them to raise interest rates and thus risk causing an economic slowdown. For global courier and express shipping giant FedEx, that’s no longer a possibility but a fact, as the firm has withdrawn its financial guidance for the fiscal year and added concern to the market.
Chief Executive Officer Raj Subramaniam said: “Global volumes declined while macroeconomic trends deteriorated significantly towards the end of the quarter, both internationally and in the United States”.
In total, the slowdown in global economic activity resulted in a shortfall of $500 million for FedEx Express and $300 million for FedEx Ground during the quarter, the company said, then pointing fingers at “macroeconomic weakness in Asia” as well as the “challenges” in Europe.The warning comes as consumers around the world grapple with rising prices. FedEx stock plunged more than 16% in trading after the close on Wall Street yesterday below $171.
In the monthly timeframe (see below), the FedEx stock price went below its cloud, below its Kijun (green line), and below its Chikou Span (yellow line) followed by the Lagging Span (white line) which indicates a bearish momentum. The next Suport is at $160.8 and the $149.9 in order to fill the gap; in the event of a reversal, the first ressistance to be reached is at $177.8.
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