Markets Overview:

UK 100 is called to open +17 points this morning at 6961. The UK blue-chip index is set to gain in early trading today as investors look to yesterday’s results stateside as an indicator for sentiment. It was equally positive in Asia overnight, with Japan’s Nikkei rising 0.37% while Hong Kong’s Hang Seng was up 0.21%. Stateside yesterday we saw a mixed bag of outcomes, The S&P 500 edged up 0.1% thanks to some late buying and the Dow Jones ended higher, similarly by 0.1%, lifted by price moves in McDonald’s and Goldman Sachs.  The Nasdaq however lagged behind in the face of higher yields, giving up 0.3%.  In focus today will be the Federal Reserve interest decision in the US.

Company News & Broker Comments:

Company News:

Dixons Carphone report that their online sales of electrical goods have more than doubled during their FY and given its strong financial position, have decided to pay back government furlough money.

Fresnillo Q1 silver production was down 2.4% QoQ to 12.6m oz.

Lloyds reported better than expected profits of £1.9bn for Q1 2021, compared to average analyst estimates of £1.1bn (2020: £74m profit). Their profits were boosted by the release of £459m of its provisions for expected bad loans due to the pandemic. This was their CEO Horta-Osorio’s last set of results before leaving to become chairman of Credit Suisse. HSBC executive Charlie Nunn is set to join Lloyds as CEO in August.

LSE reported a 3.9% rise in total income in Q1 as it continued to integrate its $27bn acquisition of data analytics company Refinitiv.

Mulberry says online sales are strong and reports continued growth in Asian markets as they are to outperform forecasts in FY and post a small underlying pretax profit.

Persimmon state that they are experiencing good demand for newly built homes across the UK and its forward sales are strong, as the housing sector reaps benefits from a slew of government measures and low interest rates. Their year-to-date forward sales position stood at £3bn (2020: £2.4bn).

Reckitt Benckiser reported a higher-than-expected jump in quarterly sales as households kept up their heightened cleaning regimens a year into the COVID-19 pandemic. They reported a 4.1% rise in like-for-like sales, higher than the 2.4% growth analysts had expected.

Sainsbury’s reported a 39% fall in FY underlying profit as strong food sales during the COVID-19 pandemic were outweighed by extra costs and a decision to forgo business rates relief. They reported an underlying pre-tax profit of £356m in the year to March 6th, which was in line with guidance.

WPP reiterates 2021 guidance after “strong start” to the year and growth in all business lines.

Goldman Sachs Downgrades IMI to Buy from Conviction Buy (6 Buys / 7 Holds / 0 Sells)

Reporting Today:

GlaxoSmithKline

Lloyds

London Stock Exchange Group

Persimmon

Renishaw

J Sainsbury

WPP Group

Reporting Tomorrow:

Evraz

Natwest Group

Royal Dutch Shell

Schroders

Smith & Nephew

Unilever

Weir Group

In Focus Today:

Fed Interest Rate Decision

FOMC Press Conference

Japanese Retail Trade

Tomorrow’s Ex Dividends:

UK 100:

RELX

Rightmove

London Stock Exchange Group

UK 250:

John Laing Group

Morgan Sindall Group

Foresight Solar Fund

Coats Group

Derwent London

Sanne Group

City of London Investment Trust

Morgan Advanced Materials

HgCapital Trust

Bankers Investment Trust

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