Markets Overview:

UK 100 called to open flat at 7620; on the back of the first decline in Asian trading in five sessions on Wednesday as traders mulled signs that U.S.-China tensions will extend beyond the scheduled signing of a phase-one trade deal. U.S. equity futures fell, along with shares across most of Asia, after reports that a swathe of tariffs on China will stay in place until after November. The Nikkei closed at 23,916 (-108 points) & The Hang Seng closed at 28,732 (-152 points). Trading in the US yesterday saw the Dow Jones once more rally to all time highs during the session before practically paring gains by the close, trading at 28,939 (+32 points), the S&P traded similarly, closing at 3,283 (-5 points), the Nasdaq also followed this pattern, closing at 9,251 (-22 points). Crude oil edged ever closer to $65 a barrel once more, trading at $64.98 at time of writing, whilst gold once more caught a bid, trading at $1552.

In corporate news this morning:

Diploma reported a positive start to the year with overall trading in line with expectations. Reported Group revenues in the first quarter ended 31 December 2019 +9% over the comparable period.  At constant exchange rates, Group revenues +11%, with acquisitions completed last year contributing 9% and underlying growth of 2%. The Group’s operating margin in the first quarter remained in line with expectations.

Persimmon reported revenues for the year of £3.65bn, -2.4% reduction on the prior year (2018: £3.74bn). New housing revenues -3.5% to £3.42bn (2018: £3.55bn). New home legal completion volumes were 15,855 (2018: 16,449). Average selling price of c.£215,700 was in line with last year (2018: £215,563). This performance reflects the continued strength of the Group’s Westbury Partnerships business.

SSE is completing today the sale of SSE Energy Services Group (It’s household energy and services business in GB) to OVO Energy for £500m. 

Tullow Oil expects to report a $1.5 billion writedown after lowering its long-term oil price assumptions by $10 to $65 a barrel, coupled with a reduction in reserves in Ghana and disappointing exploration wells. 

Vistry released results this morning for the business operating as Bovis homes, delivering another record year of profits, slightly ahead of market consensus.  A Significant step up in average weekly sales rate to 0.58 for 2019. Controlled period end with total completions up 3% to 3,867. Operating margin progression despite backdrop of market uncertainty.  Home Builders Federation Customer Satisfaction score of above 90% for Q3, equivalent to 5-star rating

Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Reporting Today:

Persimmon

Tullow oil

Genel energy

Diploma

Reporting Tomorrow:

Associated British Foods (ABF)

Dechra Pharmaceuticals

Hays

Halfords

John Wood

Whitbread 

Upgrades/Downgrades:

Royal bank of Scotland downgraded to underweight by Barclays (Bloomberg: 7 Buys/ 13 Holds/ 4 Sells)

Intertek Group downgraded to sell by Goldman Sachs (Bloomberg: 3 Buys/ 6 Holds/ 11 Sells)

Shaftesbury PLC downgraded to underperform by Jefferies (Bloomberg: 0 Buys/ 8 Holds/ 5 Sells)

Royal Dutch Shell Upgraded to Buy by Berenberg (Bloomberg: 17 Buys/ 7 Holds/ 2 Sells)

In Focus Today:

UK Consumer Price Index (CPI)

Eurozone industrial production

Tomorrow’s Ex Dividends:

UK 100 :

SSE, Compass Group, Ashtead Group

:

Scottish Investment Trust, Shaftesbury, Future

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