Highlights of the Day
Asian Markets
Asian stocks traded mixed after global markets advanced overnight as recent trade fears waned. Financials, oil producers and shippers gained, but declines were seen in consumer goods sectors. |
U.S. Markets
The Dow Jones Industrial Average gained more than 400 points as U.S. stocks surged thanks to a less-aggressive stance on trade taken by Chinese President Xi Jinping. |
Today's News
EasyJet said late that it had submitted a revised expression of interest for a restructured Alitalia as part of a consortium. “Given the nature of the process, the content of the expression of interest is subject to confidentiality,” it said.
Tesco declared its first year-end dividend since 2014 as it reported a 28% rise in underlying operating profits thanks to improved margins and surging cash generation. The supermarket giant turned over £57.5bn in the 52 weeks ended 24 February, which was up 2.8% on the prior year or 1.3% if exchange rate benefits are excluded, with UK like-for-like sales up 2.2% in spite of the drag of a 0.4% decline in general merchandise. City analysts were expecting revenue of £57.66bn, according to FactSet.
Facebook Inc Chief Executive Mark Zuckerberg said the company is working with Special Counsel Robert Mueller in his investigation of Russian interference in the 2016 election, while pledging to invest more into stopping such foreign intervention. “This is an arms race,” the social media giant’s co-founder and chief executive said in testimony to a joint hearing of the Senate Judiciary Committee and the Senate Committee on Commerce, Science and Transportation.
In its interim results up to 28 February 2018, Asos maintained its full-year guidance, and revealed revenues rose 27% to £1,158.1m compared to the same period last year, supported by strong UK and international growth. Retail sales grew 27% on a reported basis and 26% on a constant currency basis. UK retail sales grew by 22% to £414.5m from £340m despite a challenging market, aided by new category expansion and proposition enhancements such as ‘Try Before You Buy’.
McCarthy & Stone said its first-half profit halved after it completed less buildings amid ‘subdued’ market conditions. Pre-tax profit fell 52% to £10.5m, as revenue edged up by 1% to £239.6m, as a 12% fall in completions was offset by a 15% rise in average selling prices. The company bumped up its interim dividend to 1.9p per share, from 1.8p in the previous corresponding period. ‘Trading was constrained by the ongoing subdued conditions in the secondary market and the lower number of new first occupations resulting from a pause in build start activity following the EU Referendum in June 2016,’ the company said.
Hammerson said it had received a slightly higher bid from French property firm Klepierre SA which it judged as still “very significantly” undervaluing the UK-based shopping centre owner and operator. London and Johannesburg-listed Hammerson said it received a new 635 pence per share offer from Klepierre late on Monday. The revised proposal would comprise 50% in Klepierre shares and the remainder in cash.
Page Group said it grew earnings by 10.3% in its fiscal first quarter after a fall in UK profit was offset by growth in overseas markets. Gross profit rose to £187.7m, as UK earnings fell by 7.1% but European, Asia-Pacific and Americas earnings rose by 18.2%, 13.8% and 20.4%, respectively. ‘We are pleased with the strong group performance in the first quarter, which was achieved despite the timing of Easter, and we are encouraged by the growth seen in the majority of our markets,’ chief executive Steve Ingham said.
Vedanta Resources reported that its fourth-quarter average gross production across assets was 190,172 barrels of oil equivalent per day or boepd, up 3% from last year. The segment exited the end of March 2018 with gross production run-rate of over 200,000 boepd, excluding internal gas consumption. All three blocks – Rajasthan, Ravva and Cambay continued to record a plant uptime of over 99%.
Interserve said that it is seeking to convene a general meeting to obtain shareholder approval to increase its borrowing limit as it expects significant balance sheet writedowns.
Gold Prices futures marked a third straight session of gains, buoyed by a weaker U.S. dollar and uncertainty surrounding U.S. reaction to a possible chemical-weapons attack in Syria.
Oil Prices eased away from 2014 highs reached the previous session as escalating Middle East tensions were offset by increasing inventories and production in the United States.
Companies Reporting this week
Day |
Companies |
Monday: |
None of Note |
Tuesday: |
None of Note |
Wednesday: |
Tesco |
Thursday: |
Saga |
Friday: |
None of Note |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,249.0 |
-17.8 |
-0.2% |
UK 250 |
19,647.5 |
-27.9 |
-0.1% |
GER 30 |
12,367.2 |
-30.1 |
-0.2% |
FRA 40 |
5,293.2 |
-14.3 |
-0.3% |
U.S. 30 |
24,408.0 |
+428.90 |
+1.8% |
U.S. 500 |
2,656.9 |
+43.7 |
+1.7% |
OIL (BRENT) |
70.77 |
-0.27 |
-0.4% |
GOLD |
1,345.16 |
+5.52 |
+0.4% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Tesco |
218.4 |
+8.1 |
+3.9% |
Paddy Power Betfair |
7170 |
+65 |
+0.9% |
Vedanta |
731.3 |
+23.7 |
+3.4% |
Carnival |
4498 |
-102 |
-2.2% |
Centrica |
140.55 |
-2 |
-1.4% |
McCarthy and Stone |
126.8 |
-10.3 |
-7.5% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
BHP Billiton |
Deutsche Bank |
Buy |
1434.2 |
1700 |
St James’s Place |
Barclays |
Overweight |
1072.5 |
1375 |
HSBC |
Deutsche Bank |
Hold |
673.5 |
680 |
Lloyds |
Deutsche Bank |
Buy |
67.06 |
78 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
8.30am: U.K. Manufacturing Production m/m |
0.1% |
0.2% |
– |
8.30am: U.K. Goods Trade Balance |
-12.3bn |
-12.0bn |
– |
12.30pm: U.S. CPI m/m |
0.2% |
0.0% |
– |
12.30pm: U.S. Core CPI m/m |
0.2% |
0.2% |
– |
2.30pm: U.S. Crude Oil Inventories |
-4.6m |
-0.6m |
– |
Sources
https://www.cnbc.com/2018/04/10/asia-markets-trade-concerns-stocks-and-currencies.html
https://www.marketwatch.com/story/us-stocks-primed-to-rally-hard-on-xis-promise-to-open-chinas-markets-2018-04-10
https://www.reuters.com/article/us-global-oil/oil-dips-on-rising-u-s-supplies-market-still-tense-on-conflict-in-syria-idUSKBN1HI04C
https://www.marketwatch.com/story/gold-loses-haven-bid-as-chinas-pledge-on-foreign-access-car-tariffs-rallies-stocks-2018-04-10
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1523430224952327900.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1523424815631980600.html
https://uk.webfg.com/news/news-and-announcements/interserve-seeks-shareholder-approval-to-up-borrowing-limit–3235741.html
https://uk.webfg.com/news/news-and-announcements/easyjet-submits-revised-expression-of-interest-for-alitalia-as-part-of-consortium–3235675.html
https://uk.webfg.com/news/news-and-announcements/tesco-pays-out-on-soaring-profits-as-lewis-turnaround-continues–3235641.html
http://www.stockmarketwire.com/article/5927637/Page-Group-first-quarter-profit-up-10-point-3pct-as-offshore-strength-offsets-weak-UK.html
http://www.stockmarketwire.com/article/5927633/Asos-maintains-full-year-guidance-amid-strong-UK-international-growth.html
http://www.stockmarketwire.com/article/5927631/McCarthy-Stone-profit-halves-amid-subdued-trading-conditions.html
https://www.nasdaq.com/article/vedanta-resources-q4-average-gross-production-up-3-20180411-00064