Highlights of the Day
Asian Markets
Asian stocks wobbled but still marked a 10-year peak, cheered by record highs on Wall Street, while shares of Apple Inc’s suppliers dipped following the release of the latest iPhone. |
U.S. Markets
Wall Street scored fresh records as concerns over North Korea and US hurricanes faded, but London dipped as strong inflation data sent the pound to a one-year dollar peak. |
Today's News
US and Russia plan to soon begin discussions at the expert level on the status of a nuclear arms reduction treaty signed in 2010, said Russian Deputy Foreign Minister Sergei Ryabkov. Ryabkov and US Deputy Secretary of State Thomas Shannon were in agreement that the treaty should be implemented without exception, said the Russian leader, according to the Interfax news agency. The New START treaty foresees the reduction of both countries’ nuclear arsenals to only 1,550 warheads and 800 launch systems.
Balfour Beatty has agreed to sell its 95% share in Blackpool Airport to Blackpool Council, for £4.25 million in cash. Balfour Beatty said: “The sale of Blackpool Airport further simplifies the portfolio, in line with the group’s strategy.”
Dunelm suffered a fall in pre-tax profits but said sales increased in its second and final full-year under former boss John Browett. The homeware specialist’s underlying pre-tax profit fell 15.2% to £109.3m in the year to July 1 – a 28.3% slump on a reported basis. This figure includes costs of around £28m relating to the retailer’s acquisition of the Worldstores group last year. Dunelm sales rose 8.5% in what Dunelm described as “subdued” homewares and furniture markets. Excluding Worldstores, revenue nudged up 2.3%.
Galliford Try’s revenues – including joint ventures – rose by 6% to £2,820m in the year ended 30 June following a strong underlying performance. Group revenues of £2,662m rose by 7%. Pre-tax profits were down 57% at £58.7m but pre-exceptional profit before tax rose buy 9% to £147.6m. The group has declared a final dividend of 96.0p per share – up 17%. Chief executive Peter Truscott said: “I am pleased to announce strong operating progress in the financial year, which has been supported by robust market conditions.
Soco International reported an increase in return to shareholders to $21.0m via a final dividend of 5p per share for 2016, paid on 16 June 2017. Ongoing balance sheet strength; half year-end cash and liquid investments balance of $132.0m with no debt. $42.7m collected in March in association with the 2005 sale of Mongolia assets. Low cash operating costs just under $13/bbl. Cash capital expenditure down to $15.5m. Revenues up at $74.0m.
Oil prices were mixed, dampened by reports of rising U.S. crude stockpiles but retaining some of the gains made in the previous session after OPEC said it expected higher demand for its crude next year.
Gold prices steady amid firmer equities, with safe-haven demand for the metal supported after U.S. President Donald Trump urged tougher measures against North Korea.
Companies Reporting this week
Day |
Companies |
Today: |
Dunelm Group * Galliford Try* Soco International |
Tomorrow: |
Morrison Supermarkets * Next * Booker Group |
Friday: |
J.D. Wetherspoon |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,356.2 |
-44.5 |
-0.6% |
UK 250 |
19,596.2 |
-69.7 |
-0.4% |
GER 30 |
12,499.2 |
-25.6 |
-0.2% |
FRA 40 |
5,207.0 |
-2.0 |
-0.0% |
U.S. 30 |
22,118.86 |
+61.49 |
+0.3% |
U.S. 500 |
2,496.5 |
+8.4 |
+0.3% |
OIL (BRENT) |
53.80 |
-0.04 |
-0.1% |
GOLD |
1,326.24 |
-1.30 |
-0.1% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
TBC Bank |
1621 |
+34 |
+2.1% |
Easyjet |
1202 |
+8.0 |
+0.7% |
Micro Focus |
2413 |
+15 |
+0.6% |
Esure |
252.6 |
-11.5 |
-4.4% |
Tesco |
181.95 |
-3.1 |
-1.7% |
Whitbread |
3704 |
-57 |
-1.5% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
Ferguson |
Bernstein |
Outperform |
4653 |
5570 |
Intertek |
RBC Capital |
Underperform |
4977 |
4100 |
Bodycote |
Deutsche Bank |
Buy |
954 |
990 |
Go-Ahead Group |
RBC Capital |
Sector Perform |
1548 |
1700 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
9:30am: U.K. Average Earnings Index 3m/y |
2.1% |
2.3% |
– |
9:30am: U.K. Unemployment Rate |
4.4% |
4.4% |
– |
1:30pm: U.S. PPI m/m |
-0.1% |
0.3% |
– |
3:30pm: U.S. Crude Oil Inventories |
4.6m |
4.1m |
– |
Sources:
https://www.reuters.com/article/us-global-markets/asian-shares-touch-10-year-peak-as-wall-st-hits-records-idUSKCN1BO02T
https://www.rappler.com/business/182003-us-stocks-end-records-strong-pound-weighs-ftse
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1505282406955689400.html
http://www.stockmarketwire.com/article/5662708/Balfour-Beatty-sells-Blackpool-Airport.html
http://www.stockmarketwire.com/article/5662703/Galliford-Try-hikes-divi-after-strong-underlying-performance.html
https://www.digitallook.com/news/news-and-announcements/halfords-poaches-dixons-director-to-be-new-ceo–2856492.html
https://www.retail-week.com/sectors/home-and-diy/dunelm-profits-hit-by-worldstores-in-subdued-full-year/7025939.article
https://uk.reuters.com/article/global-precious/precious-gold-little-changed-amid-firmer-equities-idUKL4N1LU182
https://uk.reuters.com/article/uk-global-oil/oil-prices-mixed-as-u-s-stockpile-rise-takes-shine-off-opec-higher-demand-view-idUKKCN1BO02B