Markets Overview:

UK Index called to open -4 points at 7207;  This comes after yesterday afternoons rally as fresh hopes of a Brexit deal were muted, seeing some of the most Brexit sensitive stocks rising as much as 8% intra-day (Lloyds Bank, Royal Bank Of Scotland, Barratt Developments to name but three).  After the close, Boris Johnson's DUP allies in Northern Ireland threw a dash of cold water on hopes for an imminent Brexit deal, saying, "Gaps remain and further work is required." The PM proposed making a cash payment to the region, but the DUP wants "billions not millions," the FT reported.  Stateside trading saw a green sweep across equity markets, as talks progressed further towards a trade deal between the US & China, this positive sentiment continued into Asian trading with all baring the CSI 300 in the green.  Crude regained some of the ground lost yesterday to settle at $59.22 whilst gold suffered from risk on sentiment and fell to $1480.

In corporate news this morning:

ASOS reported FY 2019 results with retail sales +13% and profit before tax fell by 68% to £33.1m (2018: £102m). Total orders placed +14% YoY. Net debt of £90.5m reflecting elevated capex investment in support of the global logistics platform. CEO states the trading period was more disruptive than they originally anticipated and there remains a lot of work to be done to get the business back on track.

Barratt Developments issued a trading update that they have started the new financial year well, with a good sales rate and healthy forward order book. 

Mediclinic announced HY 2019 update that Hirslanden delivered growth +5% in revenue, Southern Africa +7%, group level revenues +6.5% and EBITDA +5%. 

Rio Tinto released their Q3 production results with improved production in iron ore +5% YoY, bauxite +9%, aluminium -3%, Mined Copper -1%, titanium dioxide slag +8% and iron ore pellets +3%.

Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Upgrades/Downgrades:

GlaxoSmithKline Upgraded to a Hold rating by Intron Health (Bloomberg: 9 buys/ 19 holds/ 1 sells)

Go-Ahead Group Upgraded to a Buy rating by HSBC (Bloomberg: 4 buys/ 3 holds/ 0 sells)

Hammerson Downgraded to a Sector Perform rating by RBC Capital Markets (Bloomberg: 8 buys/ 9 holds/ 4 sells)

ITV Downgraded to a Hold rating by ISS-EVA (Bloomberg: 8 buys/ 12 holds/ 1 sells)

Just Eat Upgraded to a Hold rating by Numis Securities (Bloomberg: 7 buys/ 9 holds/ 2 sells)

St Modwen Downgraded to a Hold rating by ISS-EVA (Bloomberg: 4 buys/ 1 holds/ 0 sells)

Workspace Group Downgraded to Underweight rating by ISS-EVA (Bloomberg: 7 buys/ 9 holds/  1 sells)

In Focus Today:

UK Consumer Price Index (CPI)

UK Retail Price Index (RPI)

US Retail Sales Data

Companies reporting today:

ASOS, Nanoco, BHP, Mediclinic, Segro

Companies reporting tomorrow:

Dominos, Money Supermarket, National Express, Rentokil, Unilever, WH Smith

Companies reporting this week:

Dechra Pharmaceuticals, Intercontinental Hotels Group, London Stock Exchange Group

(Full list available on Week in advance)

Tomorrow's Ex-Dividends:

Smiths Group - 2.1%

BAE - 1.7%

Marshalls - 3.2%

(Full list available on Week in advance)

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