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Morning Report - 4 November 2021

Yesterday’s UK 100 Leaders Price (p) % Chg
PEARSON PLC 607.6 3.0%
FRESNILLO PLC 876.8 2.8%
INTL CONSOLIDATED AIRLINE-DI 167.2 2.3%
SMITH & NEPHEW PLC 1,292.5 1.9%
WPP PLC 1,067.0 1.7%

 

Yesterday’s UK 100 Laggards Price (p) % Chg
DARKTRACE PLC 600.0 -5.1%
COCA-COLA HBC AG-DI 2516.0 -3.4%
NEXT PLC 8036.0 -3.3%
BP PLC 334.9 -2.9%
INFORMA PLC 523.2 -2.2%
Major World Indices Price % Chg 1 YEAR
UK 100 INDEX 7,249 -0.4% 23.2%
DOW JONES INDUS. AVG 36,158 0.3% 29.8%
DAX INDEX 15,960 0.0% 29.5%
NIKKEI 225 29,794 0.9% 27.9%
S&P/ASX 200 INDEX 7,428 0.5% 22.5%
Commodities Units Price % Chg
WTI Crude Oil (Nymex) USD/bbl. 80.54 -0.40%
Brent Crude (ICE) USD/bbl. 81.95 -0.05%
Gold Spot USD/t oz. 1,775 0.3%
Copper (Comex) USd/lb. 436 0.9%

 

The UK 100 is called to open +25 points today at 7273. 

4 hours; 6 Months

Click graph to enlarge

Markets Overview:

The UK 100 is called to open +25 points today at 7273.  The UK 100 is seen starting Thursday on the front foot ahead of todays Bank of England interest rate meeting.  On Wall Street yesterday stocks rose to new records on after the Federal Reserve made the announcement to slow the monthly bond purchases the central bank implemented during the pandemic. The Dow Jones rose 104.95 points to close at 36,157.58, after being down more than 160 points earlier in the session, and closed at a new record. The S&P traded up 0.65% to 4,660.57 to also close at a new all-time high. The Nasdaq added 1% to 15,811.58 and completed a trio of record closes. This is the fourth session in a row that all three major averages closed at new highs.  This morning in Asia, Japan’s Nikkei was up 0.9% at 29,794 whilst Hong Kong’s Hang Seng was nudged 0.14% higher at 25,059. The Shanghai Composite, meanwhile, traded up 0.78% to 3,525.

 

Company News & Broker Comments:

 

Company News:

Aston Martin reports that their Q3 pretax loss has widened YoY to £97.9m from £80.5m.
Boohoo says they have reached a preliminary settlement over the California class action legal claim, that will be covered in full by existing provisions.
BT Group have confirmed their outlook for the FY and next after reporting a 3% decline in H1 revenue to £10.3bn driven by drops in enterprise & global and a flat performance in consumer. They reported adjusted core earnings of £3.75bn (+1%) helped by tight cost management.
Hikma sees FY core operating margin towards the top end of 22-24%.
Sainsbury reported a 23% rise in H1 profit and maintained their FY profit outlook despite uncertainty around supply chains. They reported an underlying profit before tax of £371m (2020: £301m profit) on revenue that rose 5.3% to £15.7bn. British retailers are grappling with delays in their international supply chains that are being compounded by labour shortages in the UK transport and warehousing networks.
 
Smith & Nephew posted Q3 sales that fell short of analysts' expectations, hurt by supply chain constraints and a rebound in COVID-19 cases due to the more infectious Delta variant. Revenue in Q3 rose to $1.27bn, adding that it now expects underlying FY revenue growth at the low end of its forecast range of 10-13%.
Tate & Lyle update that their CFO Vivid Sehgal will leave the company on December 31st due to personal reasons.

 

Broker Comments

Barclays Downgrades Aveva to Equal weight from Overweight (8 Buys / 2 Holds / 0 Sells)
Bernstein Upgrades TUI to Market-perform from Underperform (1 Buy / 2 Holds / 5 Sells)
Deutsche Bank Downgrades Trainline to Hold from Buy (3 Buys / 5 Holds / 0 Sells)

 

 

Reporting Today:

 

Aston Martin Lagonda

BT Group

Derwent London

Electrocomponents

Hikma Pharmaceuticles

Howden Joinery

IMI

Sainsbury's

Smith & Nephew

TI Fluid Systems

Tate & Lyle

Wizz Air Holdings

 

Reporting Tomorrow:

 

Beazley

International Consolidated Airlines Group

Scottish Mortgage Investment Trust

 

 

In Focus Today:

 

 

BoE Interest Rate Decision

BoE's Governor Bailey speech

European Commission releases Economic Growth Forecasts

EU Markit PMI Composite

US Initial Jobless Claims

 

Today's Ex-Dividends:

 

FTSE 100:

 

Unilever

 

FTSE 250:

 

Balfour Beatty
Ashmore
Hilton Foods Group
ContourGlobal
VinaCapital Vietnam Opportunity Fund
Edinburgh Investment Trust

 

 

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