Highlights of the Day
Asian Markets
Asian stock markets were mixed, as investors kept an eye on the second day of trade negotiations between the U.S. and China. |
U.S. Markets
U.S. stocks rose, as officials from Washington and Beijing kicked off their latest round of negotiations over trade policy. |
Today's News
Greene King on reported sales growth in its financial year to date, boosted by a strong trading over the festive season with record Christmas day sales. For the 36 weeks to January 6, the company reported like-for-like sales up 3.2%. Just in the two weeks covering Christmas and the New Year, Greene King said like-for-like sales were up 11%, with £7.7m achieved just on Christmas day, a “record” according to the firm.
Ferrexpo boosted pellet production by 7.2% during the fourth quarter of 2018, helping lift overall pellet production for the year by 1.6% to 10.6mln tonnes. Overall sales for 2018 will be approximately 10.2 mln tonnes, after sales volumes were curtailed by reduced barge shipments as a result of the low water levels on the Danube River in the second half of 2018.
SIG on said its transformation continues to progress at pace, despite challenging market conditions and lower trading revenue in the second half of 2018. The focus on better pricing management and the planned withdrawal from unprofitable business has reduced revenue in the second half of 2018, SIG said, but increased gross margins above the company’s expectations.
Clarkson confirmed that it expected full year results would be in line with expectations. In its previous update in August last year, the company said its outlook on profits for the full year was unchanged from April, when the company forecasts profits to be ‘materially below those of last year.’
Safestore Holdings on reported doubling its annual profit and boasted of an “encouraging” start to its 2019 financial year, as the company’s board chair announced he will step down. In the year that ended October 31, the self-storage provider’s pretax profit more than doubled to £185.3m from £78.9m the year before.
Morrison Supermarkets on reported a good performance during the key festive trading period, which represented the fourth consecutive Christmas of sales growth for the grocer. For the 9 weeks to January 6, Morrison reported group like-for-like sales excluding fuel up 3.6%, with retail up 0.6% and wholesale up 3.0%. Like-for-like sales including fuel were 3.4% higher.
National Grid said that it has reached a satisfactory agreement over employment terms & conditions with two unions representing workers of the company’s Massachusetts Gas business.
Oil Prices edged up, supported by hopes that U.S.-Chinese talks in Beijing would bring a halt to a trade dispute between the world’s biggest economies, while the start of OPEC-led supply cuts also tightened markets.
Gold Prices fell as risk appetite improved on bets China and the United States may be closing on a trade deal.
Companies Reporting this week
Day |
Companies |
Monday: |
Dunelm |
Tuesday: |
Safestore * WM Morrison * Ferrexpo * Greene King * SIG |
Wednesday: |
Sainsburys * Superdry * Ted Baker * Taylor Wimpey * Greggs * Topps Tiles |
Thursday: |
Tesco * Barratt Developments * Marks & Spencer * Card Factory * |
Friday: |
Mitchells & Butlers * AO World |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
6,826.6 |
+15.7 |
+0.2% |
UK 250 |
18,009.5 |
+33.3 |
+0.2% |
GER 30 |
10,782.3 |
+34.5 |
+0.3% |
FRA 40 |
4,735.8 |
+16.7 |
+0.4% |
US 30 |
23,531.35 |
+98.19 |
+0.4% |
US 500 |
2,549.69 |
+17.75 |
+0.7% |
Oil (Brent) |
57.42 |
+0.09 |
+0.2% |
GOLD |
1,283.27 |
-5.94 |
-0.5% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Smurfit Kappa |
2142 |
+62 |
+3.0% |
Just Eat |
626.1 |
+17.7 |
+2.9% |
Electrocomponents |
529.3 |
+28.3 |
+5.7% |
Morrison (WM) |
212.75 |
-6.9 |
-3.1% |
Smiths Group |
1350 |
-35 |
-2.5% |
SIG |
111.5 |
-5.1 |
-4.4% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
Melrose Industries |
Merrill Lynch |
Buy |
166.3 |
240 |
SSE |
Goldman Sachs |
Buy |
1055 |
1298 |
Next |
HSBC |
Buy |
4575 |
5900 |
Easyjet |
Berenberg |
Sell |
1100 |
1010 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
9.30pm: U.K. Halifax HPI m/m |
-1.4% |
0.5% |
– |
Sources
https://www.marketwatch.com/story/asian-markets-mixed-as-us-china-trade-talks-head-into-second-day-2019-01-07
https://www.wsj.com/articles/u-s-stock-rally-buoys-markets-in-asia-11546838162
https://uk.reuters.com/article/us-global-oil/u-s-oil-prices-edge-up-on-trade-talk-hopes-opec-cuts-idUSKCN1P201C
https://uk.reuters.com/article/global-precious/precious-gold-steady-as-dollar-sags-on-fed-rate-pause-bets-idUKL3N1Z811R
https://www.londonstockexchange.com/exchange/news/alliance-news/detail/1546935246546278300.html
https://www.londonstockexchange.com/exchange/news/alliance-news/detail/1546934760366252300.html
https://www.londonstockexchange.com/exchange/news/alliance-news/detail/1546934192476218500.html
https://www.londonstockexchange.com/exchange/news/alliance-news/detail/1546932876856163000.html
https://www.londonstockexchange.com/exchange/news/alliance-news/detail/1546932189806099900.html
http://www.stockmarketwire.com/article/6269089/Clarkson-expects-full-year-results-to-meet-expectations.html
https://www.bbc.co.uk/news/live/business-46757959
https://www.proactiveinvestors.co.uk/companies/news/212118/ferrexpo-boosts-production-sales-volumes-fall-on-logistical-issues-212118.html