Markets Overview:

UK 100 called to open +23 points at 7633; Asia stocks rallied, recouping some of Tuesday’s sell-off triggered by evidence of the contagiousness of China’s coronavirus and concern with the potential economic implications. Haven assets retreated, while U.S. and European equity futures climbed. Shanghai shares erased losses after Beijing said it will start a nationwide screening effort.  Focus today may be on UK bank’s as the U.K. labour market held up in the face of political turmoil in the three months through November, breaking a run of disappointing data that had boosted bets on a Bank of England interest rate cut this month.  Global indices saw, the Nikkei climbing 166 points to close at 24,031.  The Hang Seng recovering 338 of the 800 points lost on Tuesday morning, to close at 28,323.  During US trading, global concerns around coronavirus weighed on the session, the Dow Jones closing 152 lower at 29,196, a similar story on the S&P dropping 8.83 points to close marginally lower at 3,320 & the Nasdaq also closing marginally lower, at 9,370 an 18 point drop.  Oil prices slipped once more overnight, “Oil markets are likely to take a hit from China’s deadly coronavirus, with aviation fuel suffering the most, if the SARS epidemic in 2003 is any guide” according to Goldman Sachs Group Inc. Gold also slipped as risk on appetite caught a bid.

In corporate news this morning:

Antofagasta quarterly output hurt by Chile protests as they reported a 5.8% drop in 4th quarter copper production, plagued by supply and transportation disruptions because of civil unrest. Copper produced 185.5 kilotonnes (down from 197 kt QoQ). FY copper output came in at 770 kt (+6.2% YoY). 

Burberry sees FY sales growth after strong Christmas trading quarter, driven by Riccardo Tisci’s new collections. Now expects total revenue to grow by a low single digit percentage. Comparable store sales +3%. 

JD Wetherspoon announced that for the first 12 weeks of the second quarter,like-for-like sales increased by 4.7% and total sales by 4.2%. In the year to date , like-for-like sales increased by 5.0% and total sales by 4.9%.

Sage Group has seen group revenue grow by 10.7% to £410m, whilst seeing software subscription grow by 24.8%.

Sainsbury announce that their CEO Mike Coupe will retire and be replaced by Simon Roberts effective from the 1st June 2020. 

Ted Baker announced that Deloitte has concluded its independent review of their inventory and have stated that the value of the stock held on the group’s balance sheet at 26th Jan 2019 was overstated by £58m. This is materially higher than the £20-25m preliminary assessment announced on 2nd Dec 2019. 

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

Reporting Today:

Close Brothers

Sage Group

Antofagasta

Reporting Tomorrow:

Computercenter

Anglo American

In Focus Today:

US Existing Home Sales Data

Tomorow’s Ex Dividends:

UK 100 :

None

:

Stagecoach Group

Pennon Group

City of London Investment Trust

Games Workshop Group

Bankers Investment Trust

Upgrades/Downgrades

Experian Upgraded to Overweight/in-line by Morgan Stanley (Bloomberg: 8 Buys/ 5 Holds/ 3 Sells)

M&G downgraded to Equalweight by Barclays (Bloomberg: 9 Buys/ 4 Holds/ 0 Sells)

Rio Tinto Downgraded to Market Perform by BMO Capital Markets (Bloomberg: 10 Buys/ 13 Holds/ 7 Sells)

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