Highlights of the Day
Asian Markets
Asian stock markets surged as traders turned optimistic after trade talks between the U.S. and China were extended for a third day. |
U.S. Markets
Signs of progress between the U.S. and China on trade negotiations propelled U.S. stocks higher, their third consecutive session of gains. |
Today's News
Sainsbury’s has seen sales fall over Christmas after general merchandise trading was hit by consumer caution. Like-for-like retail sales, which exclude sales from new stores, fell by 1.1% across the Christmas period. General merchandise sales, including at Sainsbury’s-owned Argos, fell by 2.3% and overall clothing sales by 0.2%.
Taylor Wimpey said it will report full-year results in line with expectations and reiterated its previous guidance for 2019 volumes to be similar to 2018, given current market conditions, with significant volume growth potential for 2020 onwards. In a full-year trading update, the company said its total home completions increased by 3% in 2018 to 14,947, including joint ventures, up from 14,541 in 2017.
Centamin’s annual gold production fell 13% following an ‘operationally challenging’ year, but was roughly in-line with expectations provided October last year. Full-year gold production for 2018 was 472,418 ounces, a 13% reduction on the previous year, and roughly in line with the already lowered guidance of 480,000 ounces.
Greggs upgraded its expectations for full-year pre-tax profits as its savoury mince pies and newly launched vegan-friendly menu items drove a ‘strong end’ to 2018. Greggs said it expected to deliver underlying profit before tax of at least £88m for 2018, ‘slightly ahead’ of its previous guidance of £86m.
Ted Baker said it had boosted sales during the Christmas trading period, though it noted that trading conditions continued to be challenging. Sales for the five-week period from 2 December rose 12.2% on-year, and 10.5% on a constant currency basis.
Softcat said it was trading ‘materially’ ahead of its expectations following ‘strong’ trading since the end of November. ‘As we approach the end of our first half, we are now materially ahead of where we expected to be at this stage of the year,’ the company said in a short trading update for its fiscal first half through January.
Unite Group said the valuation of its two key investment vehicles had risen, for both the fourth quarter and the full year. Unite UK Student Accommodation Fund’s property portfolio was independently valued at £2.25bn at the end of December, representing a like-for-like increase of 1.1% during the quarter and 5.0% over the full year.
Fresnillo confirmed the appointment of Mr Andre Sougarret Larroquete as Chief Operating Officer. In his role, Mr Larroquete would oversee the safe and efficient running of the company’s existing mines.
Topps Tiles has hailed its “robust” performance during the first quarter of its financial year despite a decrease in like-for-like revenues. The retailer has confirmed that its like-for-like revenue for the 13 weeks to 29 December 2018 decreased by 1.4 per cent compared to the same period in 2017 when sales increased by 3.4 per cent.
Oil Prices rose, extending gains from the previous session on hopes that Washington and Beijing may soon resolve trade disputes
Gold Prices held steady as a surge in risk appetite on hopes of a Sino-U.S. trade deal offset support from expectations of a pause in U.S. Federal Reserve rate hikes.
Companies Reporting this week
Day |
Companies |
Monday: |
Dunelm |
Tuesday: |
Safestore * WM Morrison * Ferrexpo * Greene King * SIG |
Wednesday: |
Sainsburys * 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 |
6,915.8 |
+54.2 |
+0.8% |
UK 250 |
18,241.0 |
+65.3 |
+0.4% |
GER 30 |
10,871.6 |
+67.6 |
+0.6% |
FRA 40 |
4,810.9 |
+37.6 |
+0.8% |
US 30 |
23,787.45 |
+256.10 |
+1.1% |
US 500 |
2,574.41 |
+24.72 |
+1.0% |
Oil (Brent) |
59.43 |
+0.71 |
+1.2% |
GOLD |
1,282.54 |
-2.85 |
-0.2% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Taylor Wimpey |
146.2 |
+5.8 |
+4.1% |
Mediclinic |
330.25 |
+10.65 |
+3.3% |
SoftCat |
674 |
+85 |
+14.4% |
Royal Bank of Scotland |
222.8 |
-3 |
-1.3% |
Prudential |
1407.5 |
-18 |
-1.3% |
Ibstock |
210.6 |
-4.4 |
-2.1% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
WM Morrison |
UBS |
Buy |
212.6 |
285 |
Rolls Royce |
Goldman Sachs |
Conviction Buy List |
850 |
1242 |
BAE Systems |
Goldman Sachs |
Buy |
474.8 |
634 |
BP |
Berenberg |
Buy |
519.8 |
600 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
8.00pm: U.S. FOMC Meeting Minutes |
– |
– |
– |
Sources
https://www.marketwatch.com/story/asian-markets-rally-on-optimism-over-us-china-trade-talks-2019-01-08
https://www.wsj.com/articles/stocks-rise-on-hopes-for-progress-on-trade-11546938524
https://www.reuters.com/article/us-global-oil/u-s-oil-prices-rise-above-50-on-trade-talk-hopes-idUSKCN1P302J
https://uk.reuters.com/article/global-precious/precious-gold-steady-as-market-awaits-news-on-trade-deal-idUKL3N1Z9051
http://www.stockmarketwire.com/article/6270684/Unite-Group-student-accommodation-asset-values-rise-in-2018.html
http://www.stockmarketwire.com/article/6270683/Softcat-trading-materially-ahead-of-previous-expectations.html
http://www.stockmarketwire.com/article/6270699/Fresnillo-appoints-Andre-Sougarret-Larroquete-as-Chief-Operating-Officer.html
http://www.stockmarketwire.com/article/6270688/Centamin-annual-gold-output-meets-guidance-despite-falling-13pct.html
http://www.stockmarketwire.com/article/6270642/Greggs-lifts-profit-guidance-as-vegan-options-prove-popular.html
http://www.stockmarketwire.com/article/6270682/Ted-Baker-raises-Christmas-sales-in-challenging-market.html
https://www.proactiveinvestors.co.uk/companies/news/212209/taylor-wimpey-sees-2019-volumes-similar-to-2018-levels-given-current-market-conditions-212209.html
https://www.bbc.co.uk/news/live/business-46758169
https://www.bbc.co.uk/news/business-46807144
https://www.insidermedia.com/insider/midlands/robust-performance-hailed-by-topps-tiles-despite-sales-slip