Highlights of the Day
Asian Markets
Asian markets traded mixed in what proved to be a choppy session after the U.S. Federal Reserve raised interest rates for the first time this year. |
U.S. Markets
U.S. stocks dropped after the Federal Reserve upgraded its economic outlook and increased interest rates. The central bank also increased its rate-hike forecast for next year. |
Today's News
The US Federal Reserve raised its benchmark interest rate Wednesday by a quarter point to a target range of 1.5% to 1.75% – the first hike under Chairman Jerome Powell. Wall Street had overwhelmingly expected the action, with the Fed more than two years into a course of slowly tightening monetary policy. The hike is “another step in a process of gradually scaling back monetary policy accommodation as the economic expansion continues,” Powell said.
The Trump administration plans to announce sanctions against China on Thursday after determining that the country is encouraging the theft and transfer of intellectual property from US businesses. The White House said the actions come after years of talks about the issue that failed to produce change. The actions are expected to include tariffs, as well as other measures. The plans have stoked fears of a wider trade war.
Reckitt Benckiser said it has ended talks with US firm Pfizer Inc over a takeover of the latter’s Consumer Healthcare business. Chief Executive Rakesh Kapoor said: “Our priority remains organic growth, including the completion of the integration of Mead Johnson Nutrition and creating further value from reorganising into two new business units – Health and Hygiene Home.
Ted Baker grew its group revenue up 11.4% (9.6% in constant currency) to £591.7m in the 52 weeks ending 27 January, but warned of challenging external trading conditions at the start of the 2018 financial year. Profit before tax increased by 12.3% to £68.8m (2017: £61.3m). However, it said the recent unseasonal weather across Europe and the East Coast of America has had an impact on the early part of trading for spring/summer and it expects external trading conditions will remain challenging across many of its global markets.
SOCO International, made a loss of $157.3m in 2017, compared with $4.2m the year before. Excluding E&E write offs, the loss was $5m. Revenue totalled $156.2m, compared with $154.6m the year before, with an average realised crude oil price of $56/bbl (2016: $45/bbl), a premium to Brent of over $2/bbl.
Halma, the group, said profits for the year to 31 March would be in line with current market forecasts as growth continued in the second half, though currency benefits have waned. Almost all trends of the first half rolled on in the second half, with order intake remaining ahead of revenue, growth in revenue and profit continuing at the constant currency level from all major geographic regions, with Asia Pacific maintaining the strongest performance.
Workspace Group has been granted planning permission for a significant mixed-use redevelopment at its Chocolate Factory and Parma House properties in Wood Green, north London, it announced on Thursday. The company said the planning consent was for an “extensive” redevelopment across the 2.3 acre site, with 230 new homes, including 35% affordable housing, and 26,000 square feet of new office space, with the loss of 89,000 square feet of office and light industrial space.
Rio Tinto said it has agreed the sale of its interest in the Winchester South coal project for $200.0m. Rio Tinto is to sell its 75% interest in Winchester South, located in Queensland, Australia, to Whitehaven Coal Ltd. The consideration is an initial $50.0m on completion, with the rest payable over the next 12 months.
Gold Prices edged higher, adding to gains in the previous session on the back of a weaker dollar after the U.S. Federal Reserve disappointed investors expecting more hawkish comments on interest rate rises.
Oil Prices rose, lifted by a surprise draw on U.S. crude inventories as well as ongoing dollar weakness
Companies Reporting this week
Day |
Companies |
Monday: |
None of Note |
Tuesday: |
None of Note |
Wednesday: |
Kingfisher * Ferrexpo |
Thursday: |
Ted Baker * Allied Minds |
Friday: |
Next |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
6,986.6 |
-52.4 |
-0.7% |
UK 250 |
19,607.1 |
-60.9 |
-0.3% |
GER 30 |
12,191.8 |
-117.4 |
-1.0% |
FRA 40 |
5,200.6 |
-39.2 |
-0.8% |
U.S. 30 |
24,682.31 |
-44.96 |
-0.2% |
U.S. 500 |
2,711.9 |
-5.0 |
-0.2% |
OIL (BRENT) |
69.31 |
-0.16 |
-0.2% |
GOLD |
1,331.70 |
-0.54 |
-0.0% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Reckitt Benckiser |
6025 |
+399 |
+7.1% |
Rentokil Initial |
280.9 |
+7 |
+2.6% |
Allied Mind |
114.7 |
+6.7 |
+6.2% |
Micro Focus |
927.2 |
-45.4 |
-4.7% |
Halma |
1151 |
-33 |
-2.8% |
Ted Baker |
2812 |
-109 |
-3.7% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
Just Eat |
Goldman Sachs |
Conviction Buy List |
706.4 |
1010 |
GlaxoSmithKline |
MS |
Equal-Weight |
1296.2 |
1400 |
Reckitt Benckiser |
Societe Generale |
Buy |
5626 |
6500 |
Kingfisher |
JPMorgan |
Underweight |
301.6 |
275 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
9.30am: U.K. Retail Sales m/m |
0.1% |
0.4% |
– |
12.00pm: U.K. MPC Official Bank Rate Votes |
0-0-9 |
0-0-9 |
– |
12.00pm: U.K. Monetary Policy Summary |
– |
– |
– |
12.00pm: U.K. Official Bank Rate |
0.50% |
0.50% |
– |
12.30pm: U.S. Unemployment Claims |
226k |
225k |
– |
Sources
https://www.cnbc.com/2018/03/21/asia-markets-fed-dollar-oil-and-stocks-in-focus.html
https://www.cnbc.com/2018/03/21/us-stock-futures-dow-data-fed-decision-and-politics-on-the-agenda.html
https://www.reuters.com/article/global-oil/oil-prices-rise-on-surprise-u-s-crude-inventory-draw-idUSL3N1R4040
https://uk.reuters.com/article/global-precious/precious-gold-up-on-faltering-dollar-after-fed-comments-idUKL3N1R4196
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1521707005108049500.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1521704751727909800.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1521699708557532500.html
https://uk.webfg.com/news/news-and-announcements/halma-second-half-goes-to-plan-currency-benefits-evaporate–3206082.html
https://uk.webfg.com/news/news-and-announcements/workspace-gets-planning-permission-for-large-wood-green-project–3206126.html
http://www.stockmarketwire.com/article/5903394/SOCO-International-loss-widens.html
http://www.stockmarketwire.com/article/5903390/Ted-Baker-warns-of-challenging-trading-conditions.html
http://www.bbc.co.uk/news/business-43494001