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Morning Report - 20 January 2021

Yesterday’s UK 100 Leaders Price (p) % Chg
Smith & Nephew plc 1,624 3.47%
Hargreaves Lansdown plc 1,600 2.76%
HSBC Holdings plc 411.45 2.1%
Pearson plc 679.0 1.86%
Scottish Mortgage Investment Trust plc 1,241 1.55%
Yesterday’s UK 100 Laggards Price (p) % Chg
Entain plc 1,245.0 -11.92%
WPP plc 789.80 -3.54%
Barclays plc 146.86 -2.95%
Standard Chartered plc 476.6 -2.91%
Flutter Entertainment 14,400 -2.64%
Major World Indices Price % Chg 1 YEAR
UK 100 INDEX 6,713 -0.1% -12.5%
DOW JONES INDUS. AVG 30,943 0.4% 5.4%
DAX INDEX 13,815 -0.2% 2.1%
NIKKEI 225 28,633 1.4% 19.1%
S&P/ASX 200 INDEX 6,743 1.2% -4.6%

 

Commodities Units Price % Chg
WTI Crude Oil (Nymex) USD/bbl. 52.95 1.13%
Brent Crude (ICE) USD/bbl. 55.85 2.01%
Gold Spot USD/t oz. 1,841 0.0%
Copper (Comex) USd/lb. 361 0.3%

 

UK 100 called to open +18 points this morning at 6730.

1 Hour; 14 Days

Click graph to enlarge

Markets Overview:

 

UK 100 called to open +18 points this morning at 6730.  A positive open is expected in London today as markets welcome pledge from new US Treasury Secretary Yellen to “act big” on stimulus,  to help the US economy rebound from Covid-19.  Traders today traders await the inauguration of new US president Joe Biden and the formal end of the Trump era.  Stocks in Asia overnight were mostly higher on Wednesday.  Hong Kong’s Hang Seng gained 0.81%, mainland China saw stocks gain on the Shanghai composite, adding 0.33% while South Korea’s Kospi was 0.68% higher.  Japan’s Nikkei however was an exception among its peers, falling 0.38% during a session that saw some Asian markets climb to record highs, before giving back some of the gains by session close.

 

Company News:

Antofagasta reports that their copper production for the FY was 733,900 tonnes. They finished the year strongly, achieving FY production guidance and lower cash costs than in 2019.

 

BHP has forecast record iron ore production for its fiscal year 2021 as it looks to cash in on high prices for the commodity following the restart of its Brazilian operations.

 

Burberry report that underlying sales fell 9% in Q3 as the COVID-19 pandemic closed shops and meant fewer tourists were visiting its European stores. Comparable store sales in Europe, the Middle East, India and Africa declined by 37% in the quarter, but they remained confident in the future, buoyed by sales growth of 11% in Asia Pacific stores.

 

Dixons Carphone reported a 11% rise in the sales of electricals over Christmas as strong online performance more than offset the closure of stores during COVID-19 lockdowns. They forecast FY 2020-21 profits to be in line with market expectations despite current store closures. They have also appointed Bruce Marsh as CFO with effect from July 12th.

 

IAG has agreed to buy Spain’s Air Europa for 500m euros under an amended deal.

 

JD Wetherspoon have raised £93.7m in its second cash call from investors since the start of the COVID-19 pandemic, as the government’s order to close hospitality venues hammers its finances. They state that 8.4m new shares have been placed by Investec Bank at a price of 1,120p per share.

 

London Stock Exchange state it should complete its $27bn acquisition of Refinitiv on Jan 29th.

 

WH Smith says that it expects a monthly cash burn of around £15-20m during the current coronavirus-led lockdown in Britain. They also said that trading during Christmas was ahead of its expectations.

 

 

Reporting Today:

 

Antofagasta Holdings*

BHP Group Plc

Burberry Group plc

Cairn Energy plc

City of London Investment Group plc

CMC Markets Plc

Diploma plc

J D Wetherspoon plc**

WH Smith Plc

 

 

Reporting Tomorrow:

 

 

AJ Bell Plc

Arrow Global Group plc

Close Brothers Group plc

Countryside Properties Plc

Sage Group plc

IG Group Holdings Plc

 

In Focus Today:

 

 

PBoC Interest Rate Decision

UK Consumer Price Index

UK Retail Price Index

Eurozone Consumer Price Index

German Producer Price Index

 

 

Tomorrow’s Ex Dividends:

 

UK 100:

 

None

 

UK 250:

 

None

 

 

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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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