Highlights of the Day

Asian Markets

Asian Markets saw their losses deepen, with investors cautious ahead of a deadline when tariffs from the U.S. and China are due to be implemented.

U.S. Markets

U.S. stock-market indexes were closed yesterday due to Independance Day, however U.S. stock futures were moving higher.

Today's News

Glencore said it would buy back shares worth up to $1bn (£756.14m) in a programme of purchases running to the end of 2018. Glencore said the programme will be split into two halves, the first £350m worth of shares to be bought by Citigroup Global Markets by Aug. 7 and the remainder at the discretion of the broker.

 

Superdry declared a special dividend as annual revenue climbed, though profit dipped following the impairment of the Berlin Kranzler store. Revenue rose 16% to £872.0m in the year to April 28, though pretax profit fell 23% to £65.3m. This reflected the fair value movement on forward exchange contracts as well as an impairment of the Berlin Kranzler store.

 

EazyJet, the low cost airline carried 7,901,285 passengers in June, a 2.3% rise from a year ago. The load factor rose to 95.4% in June from 94.8% the same month a year ago. On a rolling 12-month basis, easyJet carried 83,273,673 passengers – up 6.6% from a the same month a year ago, while the load factor rose by 1.5% to 93.5%.

 

Purplebricks reported a Group adjusted operating loss of £21.3m for the year ending 30 April 2018 despite strong revenue growth in the UK and Australia. This compares with a £5.1m Group loss in 2017. While the UK made an adjusted EBITDA profit of £8.1m, a significant increase on £1.7m last year, Australia saw an adjusted EBITDA loss of £11.8m and the US a £16.0m loss. This reflected the firm’s investment in launching and establishing these early-stage businesses, the company said.

 

Associated British Foods said its full-year outlook on performance was unchanged as profits at retailer Primark are expected to top previous expectations while AB Sugar profits would fall short. For the 40 weeks ended 23 June, group revenue from continuing businesses grew 3% compared with the same period last year at constant currency and 2% ahead at actual exchange rates.

 

Persimmon reported a 5% rise in first half revenue, fuelled by improved house sales and a 1.2% rise in average prices. Total revenue rose to £1.84bn from £1.75bn in the six months ended June 30. Smaller rival Bovis Homes Group also reported better-than-expected rise in sales.

 

Oil Prices fell after U.S. President Donald Trump sent a strident tweet demanding that OPEC cut prices for crude.

 

Gold Prices were fairly flat after a slip in global equities due to trade concerns still looming.

Companies Reporting this week

Monday:
Tuesday:
Wednesday: Sainsbury (J), Topps Tiles
Thursday: Purplebricks, Persimmon,Ferrexpo, Associated British Foods
Friday:

Early Market Movements

UK 100 7,574.6 +1.5 +0.0%
UK 250 20,641.3 -11.3 -0.1%
GER 30 12,363.1 +45.4 +0.4%
FRA 40 5,328.1 +7.6 +0.1%
US 30
U.S. 500
OIL (Crude) 77.71 -0.53 -0.7%
GOLD 1,254.99 +0.00 +0.0%

UK Risers & Fallers (8:15am)

Glencore 326.9 +7.45 +2.3%
Barratt Developments 500.8 +7.9 +1.6%
ElectroComponents 761.4 +33.4 +4.6%
Associated British Foods 2603 -114 -4.2%
Next 5862 -84 -1.4%
Sophos 497.5 -118 -19.2%

Latest Broker Views

Cairn Energy Barclays Overweight 239 295
Premier Oil Barclays Sector Perform 118.4 170
Tullow Oil Barclays Overweight 229.9 285
Beazley RBC Outperform 568 675

Forthcoming Economic Data

11.00am: UK BOE Gov Carney Speaks
1.30pm: US Unemployment Claims 227k 225k
3.00pm: ISM Non-Manufacturing PMI 56.5 56.5
4.00pm: Crude Oil Inventories -9.9m -4.4m

 

Sources:

https://www.marketwatch.com/story/us-stock-futures-rise-as-traders-but-not-trade-tensions-take-a-break-2018-07-04

http://www.stockmarketwire.com/article/6040701/EasyJet-passenger-numbers-load-factor-increase-in-June.html

http://www.stockmarketwire.com/article/6040697/Purplebricks-reports-Group-adjusted-operating-loss-of-pound21-point-3m-despite-strong-revenue-growth-in-UK-Australia.html

http://www.stockmarketwire.com/article/6040699/Associated-British-Foods-sees-higher-profits-at-Primark-full-year-outlook-unchanged.html

https://uk.reuters.com/article/uk-glencore-buyback/glencore-announces-1-billion-share-buyback-idUKKBN1JV0KD?il=0

http://www.cityam.com/288726/superdry-has-announced-second-special-dividend-off-back

 

Subscribe to our Award-winning Newsletter

We provide daily market data in the form of our award-winning newsletter, The Morning Call and The Market Close.
You can subscribe to this information at any time to help you make the most of your investment.

Quick Sign-up

Recommendations: Collins Sarri Statham Investments Ltd (CSS) does not in any of its publications take into account any particular recipient's investment objectives, financial situation, and specific needs and demands. Therefore, all CSS publications are, unless otherwise specifically stated, intended for informational and/or marketing purposes only.CSS shall not be responsible for any loss arising from any investment based on a perceived recommendation.

No publication (including recommendations) shall be construed as a representation or warranty that the recipient will profit, nor avoid sustaining losses, from trading in accordance with a trading strategy set forth in a publication.

Risk Warning: Trading in the products and services offered by Collins Sarri Statham Investments Ltd (CSS) may, result in losses as well as profits as the value of investments may go down as well as up. You may not get back the full amount you have invested.

Any reference to past performance should not be viewed as an indication of any future performance.

Investments held in overseas markets are subject to the effects of changes in exchange rates which will impact on the value of the underlying investment.

Investments made in AIM and penny shares carry an increased risk due to the difficulty in creating a market in these shares. There may be a substantial difference in the buy and sell price.

Leveraged products such as Contracts for Difference (CFDs), derivatives, commodities & Foreign Exchange (FX), carry a higher risk to your capital. They can lose their value rapidly and you may lose substantially more than your initial investment.

Speculative trading is not suitable for all investors: The information contained herein is based on materials and sources that we believe to be reliable however we make no representation or warranty, either express or implied, in relation to the accuracy, completeness or reliability of the information contained herein. Please note that the figures shown may, in some instances, be rounded to the nearest penny. Prices can move sharply from those quoted in this document. Current prices can be verified by calling one of our brokers. CSS is under no obligation to update the information contained herein. Neither CSS, nor its affiliates, nor its employees shall have any liability whatsoever for any indirect or consequential loss or damage arising from the use of this document.

Get Started with CSS

Open an Account

Subscribe to our award winning daily newsletter

Voted "Best Market Newsletter" in 2012, 2014, 2015 and 2017 by the City of London Wealth Management Awards

Subscribe to our newsletter (Popup)

By signing up to our free email, you are consenting to receive these promotions. The newsletter is sent up to three times per day during the week and up to once per day over the weekend and is directed at UK residents. The newsletter contains company news, market movements, CSS research and promotions and breaking economic news. Occasionally our newsletter will contain advertisements from trusted partners. However, we will never give, sell or rent your email address to any other companies. If you want to stop receiving our free emails you can unsubscribe at any time by clicking on the link at the bottom of each email. You can read our privacy policy here.

Sending
No, thank you I am already subscribed