Highlights of the Day
Asian Markets
Asian shares pared gains, pulling away from the cusp of a record high, while the yen stole the currency spotlight and jumped after the Bank of Japan’s slight reduction to its bond purchases reminded investors that it will eventually normalise policy. |
U.S. Markets
U.S. Shares edged higher, approaching record highs after the U.S.500 extended its winning streak, while the dollar steadied against its major counterparts.
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Today's News
Prime Minister Theresa May was under pressure from Tory MPs to show more political bite in a shake-up of junior Government posts after a cautious Cabinet reshuffle was seen to be blighted by blunders. The PM was thwarted in a planned bid to reshape her top team as education secretary Justine Greening quit rather than switch to the Work and Pensions portfolio, and Health Secretary Jeremy Hunt was reported to have dug in after turning down the role of Business Secretary. As May turned her attention to junior ministerial roles, she faced calls to be more courageous in bringing about change and diversity to refresh the look of the government.
Morrison W. Supermarkets posted strong sales in final months of the year and enjoyed a particularly strong Christmas trading period. Total sales for the 10 weeks to January 7 grew by 2.8% including fuel and 2.6% excluding fuel. Like-for-like sales over the period grew by 3.0% including fuel and 2.8% excluding fuel. Morrisons said sales were especially strong over the Christmas and New Year period with like-for-like sales growth of 3.7% for the six weeks to January 7.
Persimmon upgraded its annual profit guidance after it grew revenue in 2017 by 9%, underpinned by higher completion rates and selling prices. Revenue for the year through December grew to £3.42bn, up from £3.14bn. “We anticipate our pre-tax profits for the year will be modestly ahead of market consensus,” the company said. Legal completion volumes increased by 6% to 16,043 and the group’s average selling price increased by 3% to around £213,300 per home.
Unite Group said it achieved occupancy levels of 99% for the currency academic year as demand for accommodation remained high. The company said the sales cycle for the 2018/19 academic year was well underway, with 66% of rooms already sold and 56% guaranteed by nominations agreements. The level of 2018/19 sales made so far supports the outlook for 3.0-3.5% rental growth on a like-for-like basis, the company added.
SIG said trading in recent months had met its expectations, with group revenue from continuing operations for 2017 rising strongly. Revenue growth of 7.5% to £2.8bn included currency movements contributing 3.8% and acquisitions 0.2%, the company said. Like-for-like revenue for the year grew by 4.0%, in line with management’s expectations. SIG, however, also announced that it had overstated cash and trade payables associated with the issue of cheques around previous period ends. Although there was no impact on the current year’s trading statement,
BGEO Group property and casualty insurance subsidiary, Aldagi, signed a major third-party partnership agreement with JSC Liberty Bank to enhance the distribution capabilities of its motor third party liability insurance business. Liberty Bank is the third largest bank in Georgia by total assets, and enjoys the largest branch and service outlet network in the country. As part of the partnership agreement, Aldagi’s MTPL products will be offered to the bank’s clients through Liberty Bank’s large retail footprint in exchange for a commission fee based on the premium of each underwritten insurance policy.
Gold inched down early as the dollar held steady amid expectations of more U.S. interest rate hikes this year.
Oil Prices prices hit their highest since 2015 again as speculators bet on further price rises amid OPEC-led production cuts and a dip in American drilling activity, though some warned the rally could run out of steam.
Companies Reporting this week
Day |
Companies |
Today: |
Safestore Holdings |
Wednesday: |
Supergroup |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,727.4 |
+30.9 |
+0.4% |
UK 250 |
20,889.6 |
+33.0 |
+0.2% |
GER 30 |
13,385.5 |
+17.7 |
+0.1% |
FRA 40 |
5,496.9 |
+9.5 |
+0.2% |
U.S. 30 |
25,283.00 |
-12.87 |
-0.1% |
U.S. 500 |
2,747.7 |
+4.6 |
+0.2% |
OIL (BRENT) |
68.11 |
+0.33 |
+0.5% |
GOLD |
1,317.46 |
-2.94 |
-0.2% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Pets at Home |
174.05 |
+6.4 |
+3.8% |
Morrisons |
234 |
+7.1 |
+3.1% |
Sainsbury |
247.9 |
+6.9 |
+2.9% |
Just Group |
155.3 |
-12.4 |
-7.4% |
RSA |
615.8 |
-4.8 |
-0.8% |
Standard Chartered |
790.2 |
-5.2 |
-0.7% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
Informa |
Berenberg |
Buy |
735.4 |
825 |
Vodafone |
Bernstein |
Outperform |
239.2 |
270 |
Whitbread |
Credit Suisse |
Outperform |
3980 |
4950 |
Pearson |
JP Morgan |
Neutral |
728.6 |
763 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
4:00pm: U.S. JOLTS Job Openings |
6.00m |
6.05m |
– |
Sources:
https://uk.reuters.com/article/uk-global-markets/asian-shares-edge-up-yen-jumps-as-boj-trims-bond-buying-idUKKBN1EY02T
https://economictimes.indiatimes.com/markets/stocks/news/asian-shares-dollar-steady-nikkei-rallies/articleshow/62423853.cms
https://uk.webfg.com/news/news-and-announcements–/uk-retail-sales-remain-lacklustre-amid-household-income-squeeze—brc–3063028.html
http://www.stockmarketwire.com/article/5808107/Unite-Group-says-student-accommodation-demand-high.html
http://www.stockmarketwire.com/article/5808089/BGEO-inks-partnership-deal-with-Liberty-Bank.html
http://www.stockmarketwire.com/article/5808087/SIG-says-trading-in-line-over-stated-cash-position.html
http://www.stockmarketwire.com/article/5808048/Persimmon-upgrades-guidance-as-revenue-rises.html
http://www.stockmarketwire.com/article/5807796/Morrisons-posts-jump-in-Christmas-sales.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1515478934429856700.html
https://uk.reuters.com/article/us-global-oil/u-s-oil-prices-hit-highest-since-2015-but-doubts-loom-over-rally-idUKKBN1EY059
https://uk.reuters.com/article/global-precious/precious-gold-prices-dip-on-outlook-for-u-s-rate-hikes-idUKL4N1P4165