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Morning Report - 7 December 2021

Yesterday’s UK 100 Leaders Price (p) % Chg
INTL CONSOLIDATED AIRLINE-DI 142.3 8.1%
FLUTTER ENTERTAINMENT PLC-DI 10,625.0 5.9%
MELROSE INDUSTRIES PLC 150.6 4.4%
ROLLS-ROYCE HOLDINGS PLC 129.7 3.8%
BURBERRY GROUP PLC 1,832.0 3.8%
Yesterday’s UK 100 Laggards Price (p) % Chg
OCADO GROUP PLC 1582.0 -2.7%
DARKTRACE PLC 416.2 -2.5%
POLYMETAL INTERNATIONAL PLC 1332.5 -1.7%
PERSIMMON PLC 2771.0 -1.3%
SCOTTISH MORTGAGE INV TR PLC 1385.0 -0.8%
Major World Indices Price % Chg 1 YEAR
UK 100 INDEX 7,232 1.5% 10.3%
DOW JONES INDUS. AVG 35,227 1.9% 17.2%
DAX INDEX 15,381 1.4% 15.9%
NIKKEI 225 28,456 1.9% 7.2%
S&P/ASX 200 INDEX 7,314 1.0% 9.6%
Commodities Units Price % Chg
WTI Crude Oil (Nymex) USD/bbl. 70.54 1.51%
Brent Crude (ICE) USD/bbl. 73.92 1.15%
Gold Spot USD/t oz. 1,782 0.2%
Copper (Comex) USd/lb. 431 -0.7%

 

The UK 100 is called to open +37 points today at 7269.

4 hours; 9 Months

Click graph to enlarge

Markets Overview:

 

 

The UK 100 is called to open +37 points today at 7269.  The UK’s blue chip index once more looks set to start in the green today, this follows a bumper session both here and Stateside yesterday.  Wall Street was led higher by a 2.1% gain from the small caps of the Russell 2000 index, a 1.9% rise for the Dow Jones, a 1.2% for the S&P 500 and 0.9% for the Nasdaq, as yields recovered most of the ground lost at the end of last week, markets were driven by hopes that the omicron Covid variant will not be as bad as feared.  Sentiment continued to be positive overnight and this morning in Asia, The Nikkei in Japan jumped 1.89% and South Korea’s Kospi rose 0.62%.  China’s Shanghai Composite slipped 0.14% while Hong Kong’s Hang Seng index surged 2.09%.

 

 

 

Company News & Broker Comments:

 

 

Company News:

Ashtead reports a H1 pretax profit of $889.8m (2020: $645.8m) with an interim dividend of 12.5 cents per share (2020: 9.76 cents). They now expect FY results to be ahead of prior expectations.
Babcock cautions inflation and supply chain issues after they swing to a H1 pretax profit of £58.8m (2020: £811.6m loss).
 
British American Tobacco has backed its FY profit and sales forecast, buoyed by more people switching to their vaping and oral nicotine products. They state that 3.6m more customers used their non-combustible products, bringing the total customer base to 17.1m. They also kept their FY forecast for constant currency revenue growth above 5% and mid-single digit EPS growth in 2021.
Ferguson posts a Q1 operating profit of $739m and raises their FY expectations after strong Q1.
GlaxoSmithKline says sotrovimab COVID-19 treatment is effective against the Omicron variant.
Page Group expects their FY operating profit to be in the region of £165m.

 

Broker Comments

Barclays Upgrades Berkeley Group to Equal Weight from Underweight (6 Buys / 7 Holds / 3 Sells)
Deutsche Bank Downgrades Barclays to Hold from Buy (14 Buys / 5 Holds / 0 Sells)
Deutsche Bank Upgrades Natwest to Buy from Hold (6 Buys / 10 Holds / 0 Sells)
Deutsche Bank Upgrades HSBC to Hold from Sell (7 Buys / 9 Holds / 3 Sells)
Jefferies Downgrades AstraZeneca to Hold from Buy (14 Buys / 3 holds / 0 Sells)
JP Morgan Downgrades St James’s Place to Neutral from Overweight (6 Buys / 8 Holds / 0 Sells)

 

 

Reporting Today:

 

 

Ashtead

Babcock

Ferguson

Monks Investment Trust

Paragon Banking Group

 

 

Reporting Tomorrow:

 

 

Berkeley

SSP

Tui

 

 

In Focus Today:

 

 

EU Gross Domestic Product s.a.

Japanese Gross Domestic Product

UK BRC Like-For-Like Retail Sales

Chinese Trade Balance

Japanese Leading Economic Index

EcoFin Meeting

German Industrial Production s.a.

EU ZEW Survey – Economic Sentiment

German ZEW Survey – Economic Sentiment

US Nonfarm Productivity

This Week’s Ex-Dividends:

 

FTSE 100:

 

Intermediate Capital Group

 

FTSE 250:

 

XP Power

Homeserve

Investec

Liontrust Asset Management

Redde Northgate

Assura

 

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