Highlights of the Day
Asian Markets
Asian Shares meandered in Asia after markets retreated from their record highs overnight and China reported weak manufacturing data.
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U.S. Markets
Retailers and health-care companies slipped following a slew of analysts’ stock downgrades. The declines weighed on major U.S. stock indexes at the start of a busy week that was set to include another round of earnings results. |
Today's News
UK consumer confidence weakened in October on concerns about wider economic prospects but willingness to buy improved for the third straight month, survey data from GfK showed Tuesday. The consumer sentiment index fell by one point to -10 in October. “As concerns about the wider economic prospects for the UK economy dampen our outlook, consumers are showing no real ‘get-up-and-go’,” Joe Staton, head of Market Dynamics at GfK, said.
Weir Group said its annual operating profits are expected to be slightly lower than previously indicated as a result of project phasing, investment in growth and one-off plant reconfiguration costs. In the third quarter, group orders increased 21%, which the company pinned on a focus on customers and technology in improving markets. “At a group level, we anticipate strong growth in full year constant currency revenues and profits,” chief executive John Stanton said.
Croda International saw continued organic growth in the third quarter driven by Personal Care and has affirmed its full year outlook. The group said the improved sales trend seen in the first half continued in Q3 with constant currency sales up 4.4% in the quarter and 4.0% year to date. Across the three core sectors, constant currency sales in Q3 grew 5.7% (up 4.8% year to date). It said this was driven by a strengthening performance in Personal Care, with constant currency sales up 7.5%, building on the recovery seen in the first half of the year.
WPP said its third-quarter revenue climbed 1.1%, underpinned by currency gains. Revenue in the three months through September rose to £3.649b, though constant currency revenue fell 0.4% and like-for-like revenue fell 2.0%. Turning to the outlook, the company said its 2017 third-quarter forecast will be formally reviewed in the first two weeks of November, but indicates broadly flat like-for-like revenue and net sales growth.
Ryanair posted an 11% increase in net profit after the budget airline experienced robust growth in traffic volumes. Net profit for the six months through September rose to €1.29bn, boosted by 11% growth in traffic volumes and lower fuel costs. Ryanair stuck to its annual earnings guidance, despite recently having to cancel hundreds of flights due to an issue with staff holiday rostering.
DS Smith said trading in the first half of the year was is in line with its expectations, with return on sales broadly consistent with that reported for the full year to 30 April 2017. Return on average capital employed, meanwhile, was at the upper end of the target range, the packaging company said. The integration of recently-acquired Interstate Resources was proceeding “very well”, it added.
BP said its performance in the third quarter of 2017 was well ahead of the previous year, allowing it to turn to profit in the first nine months, as the oil giant also said it intends to launch a share buyback later this year. BP kept its quarterly dividend flat at 10 cents per share for the three months to the end of September, but said it plans to offer a share buyback in the final quarter of the year to offset the dilution that arises from its scrip dividend offer, when shareholders take payouts in shares rather than cash.
Just Eat has increased its full year revenue guidance after a strong performance in the three months to the end of September. Reported revenues were up 47% at £138.6m in the third quarter driven by strong order growth and the inclusion of SkipTheDishes. On a currency neutral basis, revenues grew by 44%. Total orders were up 29% to 43.1 million in the Third Quarter (Q3 2016: 33.3 million). UK orders were 26.2 million (Q3 2016: 21.4 million), up 22% against a comparative period that was impacted by unseasonal weather conditions.
Gold eased as traders took profits following days of gains and as the prospect of increasing U.S. exports dampened overall bullish sentiment that has driven Brent above $60 per barrel.
Oil Prices were largely unchanged after the Bank of Japan kept its monetary policy steady, with investors shifting their attention to other central bank meetings and economic events due this week.
Companies Reporting this week
Day |
Companies |
Today: |
BP * Ryanair * WPP * Just Eat |
Tomorrow: |
Standard Chartered * Next * Paddy Power Betfair |
Thursday: |
BT * Morrisons * Tate & Lyle * Randgold Resources * Royal Dutch Shell |
Friday: |
Smith and Nephew |
Early Market Movements
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,504.1 |
+16.3 |
+0.2% |
UK 250 |
20,211.4 |
-1.9 |
-0.0% |
GER 30 |
– |
– |
– |
FRA 40 |
5,491.8 |
-1.8 |
-0.0% |
U.S. 30 |
23,348.74 |
-85.45 |
-0.4% |
U.S. 500 |
2,572.8 |
-8.2 |
-0.3% |
OIL (BRENT) |
60.77 |
-0.13 |
-0.2% |
GOLD |
1,276.26 |
-0.03 |
-0.0% |
Prices supplied by Saxo Capital Markets UK Limited, part of the Saxo Bank A/S Group of companies. |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Croda International |
4169 |
+155 |
+3.9% |
BP |
518 |
+16.4 |
+3.3% |
Carillion |
47.75 |
+1.75 |
+3.8% |
Royal Mail Group |
372.1 |
-17.6 |
-4.5% |
WPP |
1281 |
-14 |
-1.1% |
Weir |
1940 |
-156 |
-7.4% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
St James’s |
Goldman Sachs |
Neutral |
1174.5 |
1220 |
Saga |
Goldman Sachs |
Buy |
191.71 |
220 |
Royal Mail |
Berenberg |
Hold |
372.5 |
375 |
Entertainment One |
Citigroup |
Buy |
284.7 |
340 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
3:00pm: U.S. CB Consumer Confidence |
119.8 |
121.1 |
– |
Sources:
https://www.wsj.com/articles/global-markets-higher-on-tech-strength-1509327445
http://www.chicagotribune.com/business/sns-bc-financial-markets-20171030-story.html
http://www.stockmarketwire.com/article/5723890/Weir-Group-trims-FY-guidance.html
http://www.stockmarketwire.com/article/5723876/DS-Smith-says-trading-as-expected.html
http://www.stockmarketwire.com/article/5723871/WPP-like-for-like-revenue-falls.html
http://www.stockmarketwire.com/article/5723866/Croda-sees-continued-organic-growth-in-Q3.html
http://www.stockmarketwire.com/article/5723617/Just-Eat-raises-guidance-after-strong-Q3.html
http://www.stockmarketwire.com/article/5723615/Ryanair-1H-profit-up-11pct.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1509434908601942300.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1509431675871718200.html
http://www.reuters.com/article/us-global-oil/oil-eases-on-profit-taking-but-sentiment-remains-strong-as-supply-cuts-bite-idUSKBN1D0026
https://in.reuters.com/article/global-precious/gold-prices-steady-central-banks-in-focus-idINKBN1D004L?il=0