The investor exuberance cooled in Japan today with the Nikkei down -0.76% and a 183-point fall. Big names Sony Corp and Yaskawa Electric fell -5% and -4.5% helping drag the Nikkei below 24,000 to 23,940. A higher yen played its part, up +0.28% and now +1.5% in the last week.
But the bigger story is the dollar spot price at 89.91 (this morning), slipping below 90. Tomorrow comes a European Central Bank rate decision; in the background simmers worsening US-China relations on trade. A consequence of Trump/America first? A fear of the loose cannon sitting in the White House? It’s terrific news for US exports but the US currency is looking like a G10 outsider.
At 9.30am sterling-sensitive UK employment and average weekly earnings data arrives from the Office of National Statistics (ONS). There’s quite a chunk of Eurozone PMI readings also en route. However the UK ONS reading could chuck the pound a wobble, which has crested $1.40 on very thin economic pro-Brexit sentiment. A reality check could be on the cards if average wage growth disappoints, particularly.
- UK FTSE 100 7,731.83 +0.21%
- DAX 13,559.60 +0.71%
- CAC 40 5,535.60 +0.71%
- Euro Stoxx 600 402.81 +0.17%
- Dow 26,071.81 26,210.81 -0.01%
- S&P 500 2,839.13 +0.22%
- Nasdaq 7,460.29 +0.71%
- Nikkei 225 23,940.78 -0.76%
- Gold 1,347.10 +0.40%
- Oil WTI 64.49 +0.03%
JD Wetherspoon like-for-like sales lift
Strong numbers for JD Wetherspoon this morning. The pubs chain says important like-for-like sales surged +6.0% for the first 12 weeks of the second quarter while total sales lifted +4.3%.
Wetherspoon says the better-than-expected sales means year-to-date underlying pre-tax profits will be slightly ahead of expectations. “Similar outperformance in the second half will be more difficult to achieve” it warns.
"We face significant costs in the second half in areas which include labour, business rates and the sugar tax. There will also be some uncertainty as to the effects on our business of the FIFA World Cup.”
Fever-Tree earnings to climb again
Upmarket spirits mixer brand Fever-Tree says 2017 earnings are likely to be “comfortably ahead”. Sales could come in at £169m compared to the £102m it managed last year, overtaking Schweppes as the biggest UK mixer player.
Fever-Tree shares have soared since its stock market debut three years ago. Their original listing price was 134.00p. They’re now worth more than 2,620.00p.
“The group's performance over the Christmas period was particularly notable with impressive rate of sales growth across all channels, formats and flavours,’ Fever-Tree said in a note to investors.