Markets Overview:

UK 100 called to open +40 points at 7615;  Calls for a positive open come on the back of Asian stocks rebounding and U.S. futures edging up as investors dial back concerns about a further deterioration in the security situation in the Middle East.   The Nikkei bounced from yesterdays loss of more than 1% by adding 370 points to close at 23,575, the Hang Seng also delivered a three figure gain, 143 points, to close at 28,369.  During trading in the U.S yesterday, the Dow Jones not only pared the significant initial fall, but closed +68 points at 28,703, the S&P closed +11 points at 3,246, the Nasdaq completed the green sweep to close at 9,071, +50 points.  Oil pulled back from yesterdays 5 month highs of $71 a barrel to trade at $69.25.  Gold also pulled back as tensions eased in the middle east to trade at $1565.

In corporate news this morning:

Aston Martin warns on FY adjusted core earnings as FY core wholesales decline 7% to 5,809. EBITDA to be £130-140m. They state that trading for 2019 has been a very disappointing year.  Challenging trading conditions have resulted in lower sales, higher selling costs and lower margins. 

Premier Oil have announced the proposed acquisitions of the Andrew Area and Shearwater assets from BP for $625 million, and an additional 25%. Premier also announced a proposed extension of its existing credit facilities to 30 November 2023. Production for 2019 was also at the upper end of FY guidance at 78.4 kboepd. 

Morrisons reported a fall in underlying sales in its latest trading statement, blaming a tough economic backdrop and consumer uncertainty. Total group like-for-like sales (excluding fuel and VAT sales tax) fell 1.7% (analysts average forecast of a 2.2% decline). They expect to report a profit for the full 2019-20 year within the current range of analysts' forecasts.

888 Holdings reports continued progress during H2 2019, with December 2019 revenue at an all-time monthly record. The board remains confident of achieving results in line with current expectations.

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

Reporting Today:

Morrisons

Reporting Tomorrow:

Greggs

Upgrades/Downgrades:

Anglo American Downgraded to Hold by Investec (Bloomberg: 10 Buys/ 11 Holds/ 6 Sells)

BAE Upgraded to Overweight by JP Morgan (Bloomberg: 13 Buys/ 10 Holds/ 0 Sells)

BHP Group Downgraded to Hold by Investec (Bloomberg: 6 Buys/ 19 Holds/ 5 Sells)

Marks & Spencer Upgraded to Buy by Berenberg (Bloomberg: 5 Buys/ 11 Holds/ 8 Sells)

Next Downgraded to Hold by HSBC (Bloomberg: 5 Buys/ 11 Holds/ 5 Sells)

Page Group Downgraded to Sell by ABN Amro (Bloomberg: 6 Buys/7 Holds/ 1 Sells)

RSA insurance Upgraded to Overweight by JP Morgan (Bloomberg: 10 Buys/ 6 Holds/ 3 Sells)

Rentokil Downgraded to Neutral by Credit Suisse (Bloomberg: 5 Buys/ 7 Holds/ 4 Sells)

SSE Downgraded to Neutral by Goldman Sachs (Bloomberg: 6 Buys/ 12 Holds/ 1 Sells)

Standard Life Aberdeen Downgraded to Neutral by JP Morgan (Bloomberg: 7 Buys/ 10 Holds/ 1 Sells)

In Focus Today:

Eurozone PMI

U.S ISM Non Manufacturing PMI

This Weeks Ex Dividends:

UK 100 :

Aveva

:

Brewin Dolphin Holdings
Paragon Banking Group
WH Smith
UDG Healthcare
Workspace Group
AJ Bell
QinetiQ Group

For any help you may require placing trades or in terms of market information, put a call in to our trading floor – it’s all part of the service.