Highlights of the Day
Asian Markets
The month long global stock rally continued, with Asian stocks mostly higher and Japan’s Nikkei making a fresh run at its best close since 1996. |
U.S. Markets
All main U.S. stock indexes closed higher, with the U.S.30 finishing at its 47th record for 2017, as optimism appeared to grow ahead of the start of the earnings season |
Today's News
Mondi warned that underlying performance for the full financial year will be modestly below market expectations due to continuing cost pressures and negative currency movements. The packaging and paper company reported an 8% rise in adjusted operating profit for the third quarter ended September 30 to EUR245m on the back of increased average selling prices and higher sales volumes. The quarterly results were dented by increased costs and negative currency movements.
Hargreaves Lansdown said that it has made a “solid start” to the new financial year for net new business and revenue. The fund supermarket reported assets under administration of £82.0bn as at September 30, up 4% since June 30. Net new business in the three month period to September 30 totaled £1.54bn and revenue grew 15% to £104.1m on last year.
A price cap on energy bills proposed by the prime minister last week is unlikely to take effect before winter. Theresa May had promised to revive a plan to cap charges for an extra 12 million consumers. Howewer, Ofgem said it would ensure that all consumers on standard variable tariffs would be protected as soon as possible “if legislation is in place”. Until then a more limited price cap will be extended to another one million low income households, Ofgem said. Restrictions on the cost of gas and electricity for those with pre-payment meters already saves some four million households about £80 a year.
The UK Competition and Markets Authority said it has considered undertakings offered by Tesco’s Tesco Opticians and Vision Express (UK) Ltd regarding a merger, and says there are reasonable grounds it may accept them. The CMA said the undertakings, or a modified version of them, could ease their concerns over a lessening of competition. It said it now has until December 7 to consider the merger, though this could be extended to February 6 next year if there are “special” reasons.
Dunelm reported a jump in total like-for-like sales, but said the addition of Worldstores – which it acquired last November – has hit margins. In the 13 weeks to 30 September, total LFL sales were up 9.3% to £214.3m, with total group sales up 24.8% to £247.9m. The company said LFL sales were boosted by favourable weather comparatives and “strong” growth across the business, especially online, where LFL sales grew 46% to £19.9m.
PageGroup saw third quarter profit rise, though performance in its UK operations lagged behind the rest of the world. Total gross profit for the quarter, which ended September 30, rose to £177.3m from the comparative period’s £158.6m, a rise of 8.8% at constant currency and 12% at reported rates. However, UK gross profit fell by 7.6% at both rates to £34.9m from £37.8m, with the company blaming the UK’s withdrawal from the EU and general political uncertainty.
Ultra Electronics Group said it has won a £9.0m contract from the Airline Operators Committee at London Heathrow Airport following a competitive tender process. Under the contract’s terms, Ultra’s Airport Systems business will supply its baggage reconciliation, segregation, reflighting, tracking and reporting software as a managed service solution over the course of five years.
John Wood Group said that it has secured a new multi-million dollar maintenance service contract from French oil giant Total SA. Under the five-year contract, the UK oil and gas services company will provide onshore maintenance services to Total’s Lindsey oil refinery located in Lincolnshire, UK. The contract will commence on January 1, 2018, and includes a two-year extension option.
Oil prices edged up, on signs that markets are gradually tightening after years of oversupply, although the outlook for 2018 remained less certain.
Gold climbed to their highest settlement in two weeks on, tallying a third session gain in a row as the U.S. dollar continued to weaken.
Companies Reporting this week
Day |
Companies |
Today: |
Dunelm * PageGroup * Premier Foods * Telford Homes |
Tomorrow: |
WH Smith * Sky * Booker * Citigroup * JPMorgan Chase * Hays |
Friday: |
Man Group * Hargreaves Lansdown * Ashmore * Provident Financial |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,533.6 |
-4.7 |
-0.1% |
UK 250 |
20,134.0 |
-12.3 |
-0.1% |
GER 30 |
12,965.5 |
+16.3 |
+0.1% |
FRA 40 |
5,359.0 |
-4.6 |
-0.1% |
U.S. 30 |
22,830.68 |
+69.61 |
+0.3% |
U.S. 500 |
2,550.6 |
+5.9 |
+0.2% |
OIL (BRENT) |
56.63 |
+0.02 |
+0.0% |
GOLD |
1,287.72 |
-0.31 |
-0.0% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Dunelm |
739.5 |
+38.5 |
+5.5% |
Smith & Nephew |
1394 |
+35 |
+2.6% |
Royal Mail |
392.15 |
+9.55 |
+2.5% |
Provident Financial |
770.5 |
-66 |
-7.9% |
Mondi |
1953 |
-136 |
-6.5% |
PageGroup |
504 |
-21.5 |
-4.1% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
Just Eat |
Goldman Sachs |
Conviction Buy |
693 |
900 |
TalkTalk Telecom |
UBS |
Neutral |
216.78 |
210 |
Bovis Homes |
HSBC |
Buy |
1154 |
1283 |
Ferguson |
UBS |
Neutral |
5225 |
5350 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
3:00pm: U.S. JOLTS Job Openings |
6.17m |
6.13m |
– |
7:00pm: U.S. FOMC Meeting Minutes |
– |
– |
– |
Sources
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1507704320680229400.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1507704213140226100.html
http://www.stockmarketwire.com/article/5699402/Countryside-confident-as-completions-and-orderbook-rise.html
http://www.digitallook.com/news/news-and-announcements/dunelm-lfl-sales-up-but-margins-hit–2907168.html
http://www.bbc.co.uk/news/business-41578950
http://www.marketwatch.com/story/asian-markets-flirt-with-milestones-as-monthlong-rally-continues-2017-10-10
http://www.marketwatch.com/story/us-stock-futures-inch-higher-as-investors-count-down-to-earnings-season-2017-10-10
http://www.marketwatch.com/story/gold-rises-on-track-for-longest-string-of-gains-in-5-weeks-2017-10-10
http://www.reuters.com/article/us-global-oil/oil-rises-on-signs-of-tighter-market-but-2018-looks-more-uncertain-idUSKBN1CG023