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Morning Report - 29 July 2021

Yesterday’s UK 100 Leaders Price (p) % Chg
FRESNILLO PLC 806.4 7.0%
ST JAMES’S PLACE PLC 1,592.5 5.6%
INTL CONSOLIDATED AIRLINE-DI 181.9 3.8%
ROLLS-ROYCE HOLDINGS PLC 101.7 3.5%
SCOTTISH MORTGAGE INV TR PLC 1,315.5 2.9%
Yesterday’s UK 100 Laggards Price (p) % Chg
RECKITT BENCKISER GROUP PLC 5519.0 -3.2%
HSBC HOLDINGS PLC 396.6 -1.7%
ITV PLC 117.8 -1.3%
BRITISH AMERICAN TOBACCO PLC 2734.0 -1.3%
ASHTEAD GROUP PLC 5560.0 -1.2%
Major World Indices Price % Chg 1 YEAR
UK 100 INDEX 7,017 0.3% 14.4%
DOW JONES INDUS. AVG 34,931 -0.4% 31.6%
DAX INDEX 15,570 0.3% 21.4%
NIKKEI 225 27,782 0.7% 24.0%
S&P/ASX 200 INDEX 7,417 0.5% 23.5%
Commodities Units Price % Chg
WTI Crude Oil (Nymex) USD/bbl. 72.72 0.46%
Brent Crude (ICE) USD/bbl. 75.07 0.44%
Gold Spot USD/t oz. 1,817 0.6%
Copper (Comex) USd/lb. 451 0.6%
The UK 100 is called to open +20 points today at 7035.

1 day; 5 Months

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Markets Overview:

The UK 100 is called to open +20 points today at 7035.  Calls for a positive open today come as the US federal reserve announced its decision to keep its interest near zero.  It was a mixed session on Wall Street yesterday, the Dow Jones finished Wednesday 127 points lower or 0.36% at 34,930 whilst the S&P dipped by just 0.01% to end the session at 4,400.  The Nasdaq however rose by 102 points or 0.7% to finish at 14,762. Similarly, the small-cap focussed Russell 2000 index added 1.51% to 2,224.  In Asia this morning, Japan’s Nikkei climbed 177 points or 0.64% to 27,757, it was a standout performance in Hong Kong on the Hang Seng advancing 790 points or 3.1% to 26,264. In China, the Shanghai Composite moved up 1.4% to 3,408.  Oil prices were stronger overnight, Brent crude changing hands at $75.16 per barrel, up 0.9%, while WTI crude is trading at $72.82 per barrel, up 1.6%.  Traditional safe haven Gold is also higher this morning, trading at $1,817 per ounce, up 0.48%.

Company News & Broker Comments:

Company News:

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Anglo American are to return an additional $2bn to its shareholders through a share buyback programme and a special dividend of $0.80 per share.
AstraZeneca's COVID-19 vaccine sales more than tripled to $894m in Q2, but they shaved off 1 US cent from earnings.
BAE Systems lifted its annual guidance due to a good operational performance and said as a result it planned to raise the dividend by 5% and launch a £500m share buyback programme. They expect FY underlying earnings per share to grow by 3-5%.
BT Group reported better-than-expected 3% rise in adjusted Q1 earnings, which it said reflected improved trading across most of its business and underpinned its confidence it was on the path to growth.
Compass Group reports Q3 margins are at the top end of forecasts, with trading expected to be around 80-85% of pre-pandemic levels in Q4.
Diageo reported better-than-expected rise in organic net sales growth for FY, boosted by higher prices and retailer restocking in North America.
Evraz reports that their Q2 crude steel output was 3.368m tonnes, down 1.3% Q-o-Q.
Lloyds posted a pre-tax profit of £3.9bn for H1, ahead of the £3.1bn average analysts forecasts complied by the bank. They also announced an interim dividend of 0.67p after they released £656m of its bad loan provisions, after upgrading its economic forecasts following a rapid rollout of vaccines in Britain. There were also £425m of 'redemption charges' including compensation for historic fraud at its HBOS Reading branch.
Pets at Home sees their FY underlying pretax profit to be around £130m.
 
Royal Dutch Shell boosted its dividend and launched a $2bn share buyback programme after Q2 profits jumped to their highest in over two years following a sharp rise in oil and gas prices.
 
Sage Group sees FY revenue growth to be slightly above previous guidance of 3-5%.
Schroders reported a 33% rise in H1 profits, as strong investor sentiment on the back of vaccinations and stimulus measures pushed assets under management to a new high.
Smith & Nephew reports that their H1 revenue rose 27.8% to $2.599bn.

Broker Comments:

 

HSBC Downgrades Pennon Group to Reduce from Hold (0 Buys / 12 Holds / 1 Sell)
HSBC Downgrades Wizz Air to Reduce from Hold (7 Buys / 6 Holds / 4 Sells)

 

Reporting Today:

Anglo American

Astrazeneca

BAE Systems

BT Group

Compass Group

Diageo

Drax Group

Elementis

Evraz

Indivior

Informa

Intermediate Capital Group

Lloyds Banking Group

National Express Group

Pets at Home

RELX

Rentokil

Royal Dutch Shell

Sage Group

Schroders

Segro

Smith & Nephew

Weir Group

 

Reporting Tomorrow:

Aveva Group

Essentra

Glencore

International Consolidated Airlines

Jupiter Fund Management

Natwest Group

Pearson

Rightmove

 

 

In Focus Today:

German Harmonised Index of Consumer Prices

US GDP Annualised

German Unemployment

EU Consumer Confidence

EU Business Climate

US Initial Jobless Claims

Today's Ex-Dividends:

 

FTSE 100:

 

SSE

Royal Mail

 

FTSE 250:

 

BB Healthcare Trust

Sequoia Economic Infrastructure Inc Fnd

QinetiQ Group

Hipgnosis Songs Fund

Bankers Investment Trust

Monks Investment Trust

 

 

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