Significant news from Saudi Arabia and Russia this morning: the top two oil producers have agreed oil output cuts until March 2018. Merkel oil. Euro
JC Penney has revealed weak first quarter numbers with its stock price hitting $4.74, near an all-time low, at one point.
In the US, some shock for retailer Macy’s: shares fell 17% as the retailer revealed a profits slump with profits coming in at just 24 cents a share compared to an estimated 35 cents.
Bank of England warns spending confidence will take time to recover meanwhile US shares take a hit, the worst daily decline since April.
London’s Big Board was up 0.59% higher on Wednesday at 7,385.24 edging closer to 7,400 helped by strong gains for oil players.
The FTSE 100 neared 7,400 ending the day at 7,388.13 though it hit 7,398.58 at one point. The two biggest climbers were Hargreaves Lansdown and Associated British Foods
ITV ad revenues come under pressure but Barratt Developments predicts record sales year.
SSE and Centrica shares hit on Tory plans to cap prices
Apple shares shift higher meanwhile Conservatives confirm energy rate bill cap
Monday saw the FTSE 100 finish just three points higher at 7,300.86, up 0.05%. The top risers included Intu Properties, up 2.15% to 275.50p and Paddy Power Betfair, up 2.10% to 8,250p. Centrica shares lifted 1.86%. There was also some support for high street retailer Next, up 1.84%.
A touch of euphoria, then a fall back to reality. That was the currency markets reaction to the decisive Macron victory in Paris on Sunday which took 66% of the total vote. In Asia Japanese stocks surged following the news with the Nikkei 225 up 2.3% initially.
Some investor relief after Emmanuel Macron claimed an emphatic victory in the French election yesterday. The Nikkei climbed by more than 2% to a 17-month high. The euro also climbed to a one-year peak of almost 1.24.60 against the yen. However Macron’s victory had been priced in, to some degree, by the markets.
US jobs growth steps up but oil prices continue to struggle
On Tuesday Sainsbury’s revealed a shock first quarter 8.2% profits cut to £503m. Tesco responded with a trolley wobble of its own, its shares dipping 3.5% almost immediately. The three major supermarkets, Tesco, Sainsbury’s and Morrisons slashed fuel prices on Wednesday – 2p off diesel and 1p off petrol – in a bid to retain market share.
IAG shares rose 5% this morning to 600.17p as the owner of British Airways and Iberia revealed a 10% surge in operating profits – hitting €170m – for the first quarter of 2017. The new numbers appear impressive given that the first quarter is traditionally slow for the airline.