Markets Overview:

UK 100 called to open +30 points this morning at 7166;  On the back of upbeat rhetoric from President Trump on A US-Sino trade deal, this comes as Beijing underscores demands to cut tariffs.  This sentiment saw the Dow Jones recover from a down day to close out the trading session +28 points, the S&P +5 points and the Nasdaq +5 points completing a US green sweep.  During Asian sessions the Nikkei continued this green feel closing +65 points, while the big winner was the Hang Seng +191 points, could we see this positive sentiment filter through to European equity markets? The UK Index has once again bounced from the bottom of its two month Channel, is this the beginning of a return towards the higher end of that channel? 40 points lower? Or 250 points higher? Also in focus overnight was The OPEC+ meeting, OPEC ministers agreed in principle to deepen their output-cuts target by 500,000 barrels a day, but stopped short of nailing down a formal agreement, could we see further movement on this today? Oil prices wobbled slightly overnight but held firm at $63.75 as trading session continued. Gold pulled back slightly from yesterday’s highs of $1480 to settle at $1473, further signs of risk on appetite in the markets.

In corporate news this morning:

Associated British Foods plc is holding its Annual General Meeting today

Berekley Group this morning delivered results showing, 1,389 homes delivered – Berkeley delivers more than 10% of London’s new private and affordable homes; Pre-tax profit now returned to normal level, following successful delivery of a number of Central London developments acquired in the period from 2009 to 2013; £276.7 million of pre-tax profit (2018: £401.2 million), with EPS down 28.3%, as anticipated &  On target to deliver £3.3 billion of pre-tax profit in the six years to 30 April 2025.  Rev -43%; Gross Profit -30.3%; Operating expenses +1%; Operating profit -36%; P{rofit before tax -31%; EPS -28.3%

Vodafone is replacing the standard credit card-sized SIM holder with a new half-sized format that reduces by 50% the amount of plastic used to produce SIMs as part of a wider strategy to minimise the company’s use of all non-essential plastics.

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

Upgrades/Downgrades:

Countywide Upgraded to Hold by Numis (Bloomberg: 1 buys/ 1 holds/ 1 sells)

Great Portland Estates Upgraded to Buy by Panmure Gordon & Co (Bloomberg: 4 buys/ 7 holds/ 8 sells)

International Consolidated Airlines Group (IAG – Owner of British Airways) Upgraded to Outperform by MainFirst Bank (Bloomberg: 25 buys/ 5 holds/ 0 sells)

Marks & Spencer Upgraded to Neutral by JP Morgan (Bloomberg: 3 buys/ 9 holds/ 11 sells)

In Focus Today:

US Non Farm Payrolls

US Michigan Consumer Sentiment

OPEC meeting day 2

Companies reporting today:

Berkeley Group

Companies reporting Next Week:

Monday: None

Tuesday: Ashtead Group

Wednesday: British American Tobacco, Ted Baker, Tui

Thursday: Dixon’s Carphone, Superdry, Versarian, Ocado, PZ Cussons, Serco Group

Friday: Balfour Beatty

(Full list available on Week in advance)

This morning’s Ex-Dividends:

UK 100

3i Group – 1.6%

Associated British Foods (ABF – Owner of Primark) – 1.37%

Marston’s – 3.72%

Cineworld – 1.34%

Cranswick – 0.54%

(Full list available on Week in advance)

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