The US dollar could be checked by a ‘soft’ US consumer inflation report, out later. If inflation is positive, it could support moves to hike US interest rates. If not, expect the dollar to slip. It’s anticipated the June inflation reading will come in at 1.7% higher year–on-year and 0.2% higher on a month-on-month basis.
Shortly after 7am the euro was at $1.1408, down -0.02% while the pound was at $1.2957, up more than 0.50% on the day. Last night the Dow Jones ended 20.95 points higher at 21,553.09 while the Nasdaq was up 13 points at 6,274, both close to record highs.
Aside from US inflation, look out for EU balance of trade figures later this morning; University of Michigan Confidence numbers emerge at 3pm.
- UK FTSE 100 7,413.44 -0.05%
- Dow 21,553.09 +0.10%
- S&P 500 2,447.83 +0.19%
- Nasdaq 6,274.44 +0.21%
- Nikkei 225 20,137.66 +0.19%
- DAX 12,641.33 +0.12%
- CAC 40 5,235.40 +0.25%
- Gold 1,216.20 -0.08%
- Oil WTI 46.12 +0.09%
DCC predicts profit uptick
We start with FTSE 100 marketing and sales operator DCC. Profits are heavily tilted towards the second half but DCC claims the full year numbers will “be another year of profit growth”.
Dublin-based DCC is cautious on currency squalls: “Were current foreign exchange rates to prevail for the remainder of the year, the Group would benefit modestly…from a favourable translation of non-sterling profits into sterling.”
German growth powers Hays
Next to FTSE 250 recruiter Hays for the quarter ending 30 June. Full-year operating profits are likely to come in ahead of current market expectations – around £209.5m – says Hays.
There's overall growth of 7% and a record quarterly net fee performance claims Hays, plus an 11% growth surge from Continental Europe & Rest of World. Hays’ German performance was 16% up.
“Looking ahead, conditions remain good in the vast majority of our international markets,” Hays said this morning. “In the UK, market conditions remain stable overall.” Hays' share price, currently 167.50p, is up more than 67% in the last year.
Lastly, Dixons Carphone says it’s off-loading The Phone House Spain for €55m less capital adjustments; proceeds will be returned to the business says Dixons. The deal should be done by the company’s second quarter.
Dixons pulled its Phone House operation in Germany and Portugal in 2015. The owner of Currys has seen its share price slip more than 25% year-to-date to 264.50p.
Breaking news: Visa tells BBC Radio 5 that it will push incentives at business to become cashless.