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Morning Report - 3 August 2021

Yesterday’s UK 100 Leaders	Price (p)	% Chg
MELROSE INDUSTRIES PLC	167.3	4.5%
ROLLS-ROYCE HOLDINGS PLC	104.0	4.3%
ANGLO AMERICAN PLC	3,319.5	4.0%
INTL CONSOLIDATED AIRLINE-DI	174.5	3.8%
JD SPORTS FASHION PLC	925.0	3.1%

Yesterday’s UK 100 Laggards	Price (p)	% Chg
PEARSON PLC	827.6	-4.8%
SMITH & NEPHEW PLC	1433.5	-2.0%
UNILEVER PLC	4128.0	-0.6%
RELX PLC	2105.0	-0.4%
LONDON STOCK EXCHANGE GROUP	7472.0	-0.2%

Major World Indices	Price	% Chg	1 YEAR
UK 100 INDEX	7,083	0.7%	20.5%
DOW JONES INDUS. AVG	35,051	0.3%	32.6%
DAX INDEX	15,574	0.2%	26.6%
NIKKEI 225	27,781	1.8%	28.0%
S&P/ASX 200 INDEX	7,491	1.3%	26.4%

Commodities	Units	Price	% Chg
WTI Crude Oil (Nymex)	USD/bbl.	71.93	-2.73%
Brent Crude (ICE)	USD/bbl.	73.56	-2.45%
Gold Spot	USD/t oz.	1,815	0.0%
Copper (Comex)	USd/lb.	447	-0.3%

The UK 100 is called to open flat today at 7081.

1 day; 6 Months

Click graph to enlarge

Markets Overview:

The UK 100 is called to open flat today at 7081. Calls for an unmoved open come on the back of a mixed session on Wall Street yesterday, with the Dow Jones and S&P 500 falling 0.3% and 0.2% while the Nasdaq was only just above flat as treasury yields were sent lower. Asian stocks followed the US lead and were mostly in the red this morning too, with the Nikkei down 0.6% and the Shanghai Composite and Hang Seng both 0.3% lower.

Company News & Broker Comments:

Company News:

BP will lift its dividend by 4% and ramp up share buybacks after Q2 profits rose to $2.8bn on the back of higher oil prices, beating average analysts' expectations of $2.15bn. They have increased their dividend to 5.46 cents per share and they also plan to repurchase $1.4bn of its shares in the coming months after generating surplus cash of $2.4bn in H1.

Direct Line reported a jump in H1 earnings as they faced lower claims than usual because the pandemic kept people off the roads. They reported an operating profit of £369.9m for H1 (2020: £264.9m profit).

Greggs returned to H1 profit after a strong recovery in sales in the wake of easing of COVID-19 restrictions, and said it expected annual profit to be slightly ahead of its previous expectations. They reported an underlying H1 pretax profit of £55.5m (2020: £64.5m loss).

Standard Chartered posted a 57% rise in H1 pretax profit, higher than expected, as the bank benefited from an economic recovery from the coronavirus pandemic. Statutory pretax profit rose to $2.55bn in H1 (2020: $1.63bn).

Travis Perkins raised its 2021 earnings outlook, driven by strong performance in their merchanting business. They expect annual adjusted operating profit from continuing operations to be at least £310m, above the £300m it forecast in June.

Broker Comments:

Berenberg Downgrades Meggitt to Hold from Buy (5 Buys / 8 Holds / 2 Sells)

Berenberg Upgrades Rightmove to Hold from Sell (2 Buys / 6 Holds / 6 Sells)

Morgan Stanley Upgrades Playtech to Equal weight from Underweight (4 Buys / 2 Holds / 1 Sell)

Reporting Today:

Coats Group

Direct Line Insurance Group

Dominos Pizza

Fresnillo

Greggs

Standard Chartered

Travis Perkins

Ultra Electronics Holdings

Reporting tomorrow:

Centamin

Ferrexpo

Ibstock

Legal & General

Morgan Sidall

Taylor Wimpey

In Focus Today:

US Factory Orders

This Week's Ex-Dividends:

FTSE 100:

Lloyds Banking Group

Reckitt Benckiser Group

Unilever

RELX

Rentokil Initial

FTSE 250:

CMC Markets

Man Group

GCP Infrastructure Investments

FDM Group (Holdings)

City of London Investment Trust

Vesuvius

Tyman

Tritax Big Box REIT

Inchcape

Aberforth Smaller Companies Trust

Schroder Oriental Income Fund

Lancashire Holdings

Avon Protection

Games Workshop Group

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