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Morning Report - 27 January 2022

Yesterday’s UK 100 Leaders Price (p) % Chg
INTL CONSOLIDATED AIRLINE-DI 158.9 7.4%
OCADO GROUP PLC 1,508.5 5.7%
SHELL PLC 1,912.2 5.6%
SHELL PLC 1,909.8 5.4%
AVEVA GROUP PLC 2,861.0 4.0%
Yesterday’s UK 100 Laggards Price (p) % Chg
FRESNILLO PLC 687.8 -14.6%
SAGE GROUP PLC/THE 713.0 -6.5%
UNILEVER PLC 3831.0 -2.7%
ROYAL MAIL PLC 430.8 -2.6%
LONDON STOCK EXCHANGE GROUP 7224.0 -2.5%
Major World Indices Price % Chg 1 YEAR
UK 100 INDEX 7,470 1.3% 12.3%
DOW JONES INDUS. AVG 34,172 -0.4% 10.5%
DAX INDEX 15,459 2.2% 11.5%
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. 87.08 1.73%
Brent Crude (ICE) USD/bbl. 89.68 1.68%
Gold Spot USD/t oz. 1,817 -1.7%
Copper (Comex) USd/lb. 446 0.2%

 

The UK 100 is called to open -90 points today at 7382.

1 Day; 12 Months

Click graph to enlarge

Markets Overview:

 

The UK 100 is called to open -90 points today at 7382.  The UK's blue-chip index looks set to give up all of yesterdays gains following US the US Federal reserve's meeting yesterday, there was no change to policy at the actual meeting of the FOMC, which sets US interest rates and monetary policy, but comments afterwards from Powell indicated that can change very quickly if required.  On Wall Street, the Dow Jones fell 129.64 points, or 0.4%, to 34,168.09. The Dow was up more than 500 points at one point, but rolled over after the Fed’s update. The S&P fell 0.2% to 4,349.93. The Nasdaq Composite finished little changed at 13,542.12, buoyed by Microsoft’s post-earnings gain.  It was a tough session in Asia this morning, the Nikkei in Japan and South Korea’s Kospi both plunged more than 3%.

China’s Shanghai Composite fell 1% while Hong Kong’s Hang Seng index slumped 2.55%.

 

Company News & Broker Comments:

 

Company News:

Anglo American reported that its Q4 overall production was broadly flat, helped by higher rough diamond production at De Beers that countered a 4% drop in copper output for the three months ended Dec 31st.

 

 

Antofagasta: The U.S. Department of the Interior cancelled two mineral leases for Antofagasta Plc's proposed twin metals copper and nickel mine in Minnesota.

 

 

Diageo reported a H1 rise in sales of 15.8% as more consumers bought high-end spirits and bars increased orders as they reopened after coronavirus lockdowns.

 

 

EasyJet update that the Omicron variant was impacting its performance this quarter, but it expected to see strong demand this summer when its capacity will be near pre-pandemic levels. They flew 64% of pre-pandemic capacity in its first quarter to end-December, but its 77% load factor missed its forecast of over 80% after Omicron dented customer demand in December.

 

 

Hammerson expects 2021 adjusted earnings to be in the range of £75-80m. As FY20 rent collections came in at 97% of billable rent and FY21 collections at 88%.

 

 

St James Place said that its funds under management hit a record £153.99bn in Q4, as it brought in £2.91bn of net inflows. Total net inflows during 2021 came to £11.04bn, representing an 8.5% of opening funds under management.

 

 

Whitbread promotes Hemant Patel to CFO.

 

Broker Comments

Exane BNP Upgrades HSBC to Outperform (8 Buys / 10 Holds / 2 Sells)

 

 

Jefferies Downgrades Fresnillo to Hold from Buy (4 Buys / 9 Holds / 0 Sells)

 

 

RBC Downgrades Fresnillo to Sector Perform from Outperform (4 Buys / 9 Holds / 0 Sells)

 

 

RBC Downgrades Polymetal to Sector Perform from Outperform (9 Buys / 3 Holds / 0 Sells)

 

 

RBC Upgrades Experian to Sector Perform from Underperform (6 Buys / 5 Holds / 0 Sells)

 

 

 

Reporting Today:

 

Anglo American

 

Britvic

 

Diageo

 

Dr Martens

 

Greencore Group

 

IG Group Holdings

 

Intermediate Capital Group

 

Mitie Group

 

Rank Group

 

St James Place

 

 

 

 

Reporting Tomorrow:

 

 

 

Paragon Banking Group

 

 

 

In Focus Today:

 

 

German Gfk Consumer Confidence Survey

 

US Durable Goods Orders

 

US Gross Domestic Product Annualized

 

US Initial Jobless Claims

 

US Nondefense Capital Goods Orders ex Aircraft

 

US Personal Consumption Expenditures Prices

 

US Pending Home Sales

 

Japanese Tokyo Consumer Price Index

 

 

 

 

Today'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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