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Morning Report - 3 August 2022

Yesterday’s UK 100 Leaders	Price (p)	% Chg
HALEON PLC	310.5	4.3%
BP PLC	403.4	2.8%
STANDARD CHARTERED PLC	583.0	2.6%
NATIONAL GRID PLC	1,147.0	2.5%
PEARSON PLC	870.0	2.0%

Yesterday’s UK 100 Laggards	Price (p)	% Chg
TAYLOR WIMPEY PLC	120.1	-6.2%
BARRATT DEVELOPMENTS PLC	477.5	-5.6%
BERKELEY GROUP HOLDINGS/THE	4085.0	-5.0%
PERSIMMON PLC	1825.0	-4.2%
KINGFISHER PLC	249.4	-3.7%

Major World Indices	Price	% Chg	1 YEAR
UK 100 INDEX	7,409	-0.1%	4.3%
DOW JONES INDUS. AVG	32,396	-1.2%	-7.0%
DAX INDEX	13,449	-0.2%	-13.5%
NIKKEI 225	27,595	-1.4%	-0.2%
S&P/ASX 200 INDEX	6,998	0.1%	-6.4%

Commodities	Units	Price	% Chg
WTI Crude Oil (Nymex)	USD/bbl.	93.70	-0.76%
Brent Crude (ICE)	USD/bbl.	100.54	0.51%
Gold Spot	USD/t oz.	1,758	-0.1%
Copper (Comex)	USd/lb.	347	-1.3%

The UK 100 is called to open -18 points this morning at 7404.

1 hour; 20 Days

Click graph to enlarge

Markets Overview:

The UK 100 is called to open -18 points this morning at 7404. Stocks slumped on Tuesday on Wall Street as investors digested increasing tensions between the U.S. and China. The S&P slipped 0.67% to end at 4,091.19 after being down nearly 1% earlier in the session. The Dow Jones also shed 402.23 points, or 1.23%, to finish at 32,396.17. The Nasdaq fell 0.16% to 12,348.76, even though Uber jumped 18.9% following earnings.

Company News & Broker Comments:

Company News:

Ferrexpo reported a H1 underlying EBITDA of $486m (-44% YoY) due to lower production and higher energy costs. Their pellet sales are largely limited to European customers due to Russia blockade. Iron ore pellet prices have been strong due to reduced supply from Russia.

Hiscox reports a H1 pretax loss of $107.4m (2021: $133.4m profit) as gross written premiums written increased to $2.65bn (2021: $2.43bn). They expect the favourable rate momentum to continue through 2022 and into 2023.

Rolls-Royce says the Spanish government has approved 1.8bn euro sale of ITP Aero to Bain Capital, which will be used to help rebuild their balance sheet.

Ryanair report July passenger numbers of 16.8m (Up from 9.3m in July 2021).

Taylor Wimpey expects their annual operating profit to be around the top end of the current market consensus range, helped by strong demand for its homes as they maintained volume growth targets for the year. They reported a H1 pretax profit of £334.5m (2021: £287.5m profit). They state that house price growth has fully offset build cost inflation.

Broker Comments:

Citi Group Downgrades Centrica to Neutral from Buy (4 Buys / 3 Holds / 1 Sell)

JP Morgan Upgrades BAE Systems to Overweight from Neutral (8 Buys / 8 Holds / 0 Sells)

Reporting Today:

Endeavour Mining

Ferrexpo

Hill & Smith Holdings

Hiscox

IP Group

Taylor Wimpey

Reporting Thursday:

ConvaTec Group

Glencore

Hikma Pharmaceuticals

Meggitt

Mondi

Morgan Sindall

Rolls Royce

Serco Group

In Focus Today:

Chinese Caixin Services PMI

German Trade Balance s.a.

German S&P Global/BME Composite PMI

EU S&P Global Composite PMI

UK S&P Global/CIPS Composite PMI

EU Retail Sales

US S&P Global Composite PMI

US S&P Global Services PMI

US ISM Services PMI

Tomorrow’s Ex-Dividends:

FTSE 100:

BT Group

Lloyds Banking Group

Schroders

Reckitt Benckiser Group

Unilever

RELX

Rentokil Initial

FTSE 250:

Currys

Vesuvius

Tyman

GCP Infrastructure Investments

City of London Investment Trust

Games Workshop Group

Aberforth Smaller Companies Trust

Lancashire Holdings

Inchcape

Schroder Oriental Income Fund

Mediclinic International

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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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