SWOT Analysis: Signet Jewelers Experiences 20 Percent Bump in Premarket Trading
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- In a great example of gold’s Love Trade, a strong U.S. economy empowered consumers to spend their discretionary income on gifts for their loved ones â€“ in particular, gold jewelry. Signet Jewelers, the parent company for Kay Jewelers, experienced a startling 20 percent increase in premarket trading after an unexpected bump in sales. Last quarter, the company reported only a 1.7 percent rise. Tiffany & Co. posted a strong second quarter as well, increasing its global sales by 12 percent. The jeweler announced plans to expand its brick-and-mortar presence in China. This move is well-timed as nationwide gold consumption in China is up 0.3 percent. Gold bar sales in China are down 16 percent, which is completely offset by the gain in jewelry.
- The International Monetary Fund (IMF) approved adding the yuan, China’s currency, into the IMF’s foreign exchange basket. This is the first time the IMF has ever added a new currency to its foreign exchange basket. The IMF’s acceptance opens the door for potentially putting the yuan on par with the U.S. dollar, according to Reuters. Meanwhile, Shandong Gold, a state owned Chinese gold mining company, is preparing to raise $1 billion via a Hong Kong listing.
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