Morning Report - 2nd November 2022

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Morning Report - 2 November 2022

Yesterday’s UK 100 Leaders	Price (p)	% Chg
INTL CONSOLIDATED AIRLINE-DI	121.6	5.5%
CENTRICA PLC	76.6	4.7%
NATWEST GROUP PLC	234.8	4.4%
FLUTTER ENTERTAINMENT PLC-DI	11,580.0	3.0%
COCA-COLA HBC AG-DI	1,902.5	2.7%

Yesterday’s UK 100 Laggards	Price (p)	% Chg
INTERTEK GROUP PLC	3654.0	-2.8%
CRODA INTERNATIONAL PLC	6760.0	-1.5%
MONDI PLC	1462.5	-1.5%
RS GROUP PLC	958.5	-1.4%
SPIRAX-SARCO ENGINEERING PLC	10750.0	-1.4%

Major World Indices	Price	% Chg	1 YEAR
UK 100 INDEX	7,186	1.3%	-1.2%
DOW JONES INDUS. AVG	32,653	-0.2%	-9.4%
DAX INDEX	13,339	0.6%	-15.6%
NIKKEI 225	27,663	-0.1%	-6.3%
S&P/ASX 200 INDEX	6,987	0.1%	-4.6%

Commodities	Units	Price	% Chg
WTI Crude Oil (Nymex)	USD/bbl.	89.04	0.76%
Brent Crude (ICE)	USD/bbl.	95.18	0.56%
Gold Spot	USD/t oz.	1,651	0.2%
Copper (Comex)	USd/lb.	348	0.3%

The UK 100 is called to open +54 points this morning at 7159.

4 hours; 8 Months

Click graph to enlarge

Markets Overview:

The UK 100 is called to open +20 points this morning at 7205. The UK blue-chip index looks set to make a firmer start on Wednesday with investors looking ahead to the fed’s interest rate decision this evening, with a rise of 75bp expected. On Wall Street yesterday, US markets fell for the second day in a row with the Dow Jones losing 80 points, or 0.24%, at 32,653, the S&P ending 16 points lower, or 0.41%, to 3,856 and the Nasdaq slipping 97 points, or 0.89%, to 10,891. In China, markets continued to rally on the prospect of the Chinese government pivoting away from its zero-Covid policy. The Shanghai Composite was up 0.9%, while the Hang Seng index in Hong Kong also made strong gains.

Company News & Broker Comments:

Company News:

Aston Martin have warned that higher costs from supply chain and logistical disruptions would hurt margins and they have tempered their delivery volume outlook for 2022 to 6,200-6,600 units.

GlaxoSmithKline beat analyst expectations for its Q3 sales and profit, months after executing a rehaul of the business with the spinoff of its consumer health unit Haleon. They reported an adjusted profit of 46.9 pence on sales of about £7.83bn, compared with company-compiled analyst consensus of 40.1 pence on sales of £7.32bn.

Next reaffirmed FY guidance that was cut in September as they reported a 0.4% rise in FY price sales in Q3, slightly ahead of its expectations. They still expect full price sales for the rest of its 2022-23 year to fall 2% and report a FY pretax profit of £840m, up 2.1% v 2021-22.

Ryanair's October passenger numbers came in at 15.7m, +38% from 11.4m YoY.

Smurfit Kappa expects its core profit this year to increase by 33% to 2.3bn euros, after it increased its third-quarter prices further. Their EBITDA increased 43% YoY at the end of September.

Wizz Air posted a H1 operating loss of 63.8m euros after a disruption-hit Q1 was offset by a strong summer recovery.

Broker Comments:

Bernstein Downgrades ITM Power to Market-perform from Outperform (9 Buys / 4 Holds / 2 Sells)

Goldman Sachs Downgrades British American Tobacco to Neutral from Buy (11 Buys / 2 Holds / 0 Sells)

JP Morgan Downgrades Ocado to Underweight from Neutral (7 Buys / 7 Holds / 2 Sells)

Liberum Downgrades Boohoo to Sell (5 Buys / 14 Holds / 2 Sells)

Reporting Today:

GSK

Morgan Sindall

Smurfit Kappa

Wizz Air

Reporting Thursday:

BT Group

Helios Towers

Hikma Pharmaceuticals

Sainsbury

Smith & Nephew

Trainline

In Focus Today:

German Trade Balance s.a

German S&P Global/BME Manufacturing PMI

German 10-y Bond Auction

German Unemployment Rate s.a

US ADP Employment Change

Fed Interest Rate Decision

Fed's Monetary Policy Statement

FOMC Press Conference

Tomorrow's Ex-Dividends:

UK 100 companies going ex-dividend on 3rd November 2022:

None

UK 250 companies going ex-dividend on 3rd November 2022:

Ashmore Group

GCP Infrastructure Investments

VinaCapital Vietnam Opportunity Fund

Renishaw

Hilton Food Group

Edinburgh Investment Trust

European Opportunities Trust

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