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Morning Report - 5 August 2021

Yesterday’s UK 100 Leaders Price (p) % Chg
ENTAIN PLC 1,912.5 6.1%
SSE PLC 1,525.0 4.0%
LEGAL & GENERAL GROUP PLC 271.5 2.9%
ABRDN PLC 295.0 2.9%
SCOTTISH MORTGAGE INV TR PLC 1,341.5 2.4%

 

Yesterday’s UK 100 Laggards Price (p) % Chg
PEARSON PLC 786.2 -3.6%
FRESNILLO PLC 811.4 -3.2%
JUST EAT TAKEAWAY 6242.0 -2.3%
OCADO GROUP PLC 1800.0 -2.2%
JOHNSON MATTHEY PLC 2938.0 -1.5%

 

Major World Indices Price % Chg 1 YEAR
UK 100 INDEX 7,124 0.3% 16.7%
DOW JONES INDUS. AVG 34,793 -0.9% 27.9%
DAX INDEX 15,692 0.9% 24.0%
NIKKEI 225 27,728 0.5% 23.2%
S&P/ASX 200 INDEX 7,511 0.1% 25.2%

 

Commodities Units Price % Chg
WTI Crude Oil (Nymex) USD/bbl. 68.12 -0.04%
Brent Crude (ICE) USD/bbl. 70.28 -0.14%
Gold Spot USD/t oz. 1,810 -0.1%
Copper (Comex) USd/lb. 434 0.1%
The UK 100 is called to open -18 points today at 7105.

1 day; 6 Months

Click graph to enlarge

Markets Overview:

The UK 100 is called to open -18 points today at 7105.  Calls for a slightly weaker open today come as investor focus will likely be on the Bank of England interest rate decision at midday. Consensus is that there is unlikely to be any immediate change to policy today, but outlook will be of interest for possible timelines for the curtailment of bond-buying stimulus and ultimately the path to rate rises.  It was a tougher session on Wall Street yesterday, the Dow Jones was down 323 points or 0.9% to 34,792. The S&P 500 slipped 0.46% to 4,402 whilst the Nasdaq ended the session in positive territory, up 0.13% at 14.780. Elsewhere, the small-cap centred Russell 2000 index was down 1.23% at 2,196.  In Asia, Japan’s Nikkei climbed 112 points or 0.4% to trade at 27,697 whilst Hong Kong’s Hang Seng was 0.36% lower at 26,331. The Shanghai Composite meanwhile was only down 0.1% at 3,474.

 

Company News & Broker Comments:

Company News:

Glencore will return $2.8bn to shareholders after soaring commodity prices helped the mining and trading company to a record performance for H1. EBITDA rose 79% to $8.7bn, beating analysts' average forecasts of $8.4bn.
Hammerson reported a 14% rise in HY adjusted profit, thanks to a recovery in retail and lower costs, but flagged that footfall was yet to rebound to pre-pandemic levels.
Rolls-Royce said it was on track to meet its forecasts for 2021, reassuring investors that despite a muted recovery in long-haul travel across the world, its cost-cutting and disposal plans were making good progress. They have stuck to their guidance given in March for free cash flow to be £2bn for 2021 and for cash flow to turn positive in H2 2021.
Savills posts H1 underlying pretax profit of £66.1m (2020: £13.2m profit).
Serco reported a 58% jump in H1 profit, benefiting from COVID-19 test-and-trace contracts and its U.S and Australian acquisitions as it stuck to its annual profit and revenue outlook. Underlying trading profit for H1 was £123m (2020: £78m profit).
WPP reports that underlying net sales jumped 19.3% in Q2 beating expectations and taking H1 growth to 11% as clients ramped up spending in the COVID recovery. They have upgraded their FY outlook to growth of 9-10%.

Broker Comments:

Goldman Sachs Downgrades Lloyds to Sell from Neutral (9 Buys / 6 Holds / 1 Sells)
Goldman Sachs Downgrades Natwest to Buy from Conviction Buy list (6 Buys / 9 Holds / 1 Sell)
JP Morgan Downgrades BAE Systems to Neutral from Overweight (9 Buys / 7 Holds / 0 Sells)

 

Reporting Today:

 

Evraz

Frasers Group

Glencore

Hammerson

Meggitt

Mondi

Rolls Royce

Savills

Serco

WPP

 

Reporting tomorrow:

Hikma Pharmaceuticals

London Stock Exchange Group

 

In Focus Today:

BoE Interest Rate Decision

BoE's Governor Bailey speech

German Factory Orders

EU Economic Bulletin

US Initial Jobless Claims

US Goods and Services Trade Balance

Today'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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