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Morning Report - 26 January 2022

Yesterday’s UK 100 Leaders	Price (p)	% Chg
OCADO GROUP PLC	1,427.5	5.1%
STANDARD CHARTERED PLC	512.2	5.0%
ABRDN PLC	239.4	4.5%
BP PLC	379.7	4.3%
SHELL PLC	1,812.0	3.7%

Yesterday’s UK 100 Laggards	Price (p)	% Chg
AUTO TRADER GROUP PLC	635.4	-3.6%
RIGHTMOVE PLC	635.2	-2.6%
AVEVA GROUP PLC	2750.0	-2.3%
EVRAZ PLC	487.0	-1.9%
BARRATT DEVELOPMENTS PLC	604.2	-1.7%

Major World Indices	Price	% Chg	1 YEAR
UK 100 INDEX	7,371	1.0%	10.8%
DOW JONES INDUS. AVG	34,298	-0.2%	10.8%
DAX INDEX	15,124	0.8%	9.0%
NIKKEI 225	27,011	-0.4%	-5.4%
S&P/ASX 200 INDEX	6,962	-2.5%	2.0%

Commodities	Units	Price	% Chg
WTI Crude Oil (Nymex)	USD/bbl.	85.50	-0.12%
Brent Crude (ICE)	USD/bbl.	88.31	0.12%
Gold Spot	USD/t oz.	1,847	-0.1%
Copper (Comex)	USd/lb.	449	0.8%

The UK 100 is called to open +50 points today at 7350.

1 Day; 12 Months

Click graph to enlarge

Markets Overview:

The UK 100 is called to open +50 points today at 7326. Yesterdays significant bounce looks set to continue today for the UK 100 following what was another rollercoaster session on Wall Street yesterday, the Dow Jones fell 67.77 points, or 0.2%, to close at 34,297.73. During the session, the index swung from a nearly 819-point deficit at its lows to a roughly 226-point rally at its highs during the session. The S&P dipped 1.2% to 4,356.45. The technology-heavy Nasdaq Composite fell 2.3% to 13,539.30 as analysts predict, the Federal Reserve may tighten monetary policy. The session In Asia was mixed this morning, Japan’s Nikkei dipped 0.44% to 27, 011 and Hong Kong’s Hang Seng was ever so slightly higher, edged up 0.08% at 24,262. The Shanghai Composite gained 0.66% to 3,455.

Company News & Broker Comments:

Company News:

Fresnillo sees 2022 attributable silver production in the range of 50.5-56.5 Moz.

Pets at Home report a FY22 pretax profit of £140m, ahead of consensus of £135m.

Sage Group report that their Q1 revenue increased 8% to £429m and that total group revenue increased 5% to £458m. They attribute the boost to growth from cloud native and cloud connected solutions.

Tullow Oil expects its 2021 free cashflow to come in higher than previously forecast at $250m and expects this year's cash flow to come in at $100m at an oil price of $75 a barrel. They have hedged 50-75% of its output of around 60,000 barrels of oil equivalent per day between $51 and $78 a barrel to 2024.

Wizz Air posted a Q3 operating loss of £213.6m euros and said the Q4 loss was likely to be slightly higher than that, before an expected improvement in the spring. The emergence of Omicron variant has hit demand in the later part of Q3 and they expect to be impacted by ongoing travel uncertainty in January, February and part of March.

Broker Comments

Berenberg Downgrades Abrdn to Hold from Buy (5 Buys / 6 Holds / 1 Sell)

Goldman Sachs Upgrades B&M to Neutral from Sell (5 Buys / 7 Holds / 2 Sells)

JP Morgan Upgrades Intertek to Overweight from Neutral (6 Buys / 9 Holds / 1 Sell)

Reporting Today:

Capricorn Energy

Reporting Tomorrow:

Carnival

Crest Nicholson

Pets at Home

Quilter

Wizz Air

In Focus Today:

German IFO – Business Climate

German IFO – Current Assessment

German IFO – Expectations

US Housing Price Index

S&P/Case-Shiller Home Price Indices

US Consumer Confidence

This Week's Ex-Dividends:

FTSE 100:

FTSE 250:

Victrex

Paragon Banking Group

Sequoia Economic Infrastructure Inc Fnd

City of London Investment Trust

Pennon Group

Schroder Oriental Income Fund

Bankers Investment Trust

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This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

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