Today's Markets: Meggitt takeover gets EU approval, ASOS, plus easyJet updates

As war rages in eastern Europe, the chances of the UK defence/aviation industry losing one of its key players to foreign ownership has moved a step closer. The £6.4bn takeover of Coventry-based Meggitt (MGGT) has been cleared by the European Commission, after US buyer Parker-Hannifin satisfied its competition requirements.

Kwasi Kwarteng, UK Business Secretary, is yet to approve the deal in response to growing concerns over national security concerns, rather than any anti-trust issues, but the fate of Meggitt, along with UK stablemate Ultra Electronics (ULR), has come under greater scrutiny since Russia’s invasion of Ukraine.

At least the deteriorating global security situation provides some respite from Covid-19, at least in terms of the news cycle. That may not last, as reports emerge that hundreds of container ships are parked offshore in China, as Beijing’s determination to eradicate the fast-spreading omicron variant have resulted in staff shortages, stalling the unloading of vessels. The problem is particularly acute in Shanghai, the world’s largest port based on cargo throughput. If the restrictions placed on the city’s populace drag on, it is likely to result in further disruption across global supply chains at a time when governments are already fretting over a slowdown in consumer spending.

The slowdown in the global economy is directly linked to high energy prices, so negative news on crude pricing could have a silver lining. The price of Brent crude slipped into reverse due to worries that the Covid-19 restrictions will cut demand in China, while speculation mounted that record volumes of crude from strategic reserves are about to find their way onto the market.

The furrowed brows meant that values for most Asian and European markets slipped in initial trading, following on from negative signals from Wall Street, ahead of US inflation data.