Asian stocks continued to rise during Tuesday as investors piled back into risk. Gold was down -0.52% while the Nikkei 225, up +1.14%, saw its best numbers for almost a month, boosted by the falling yen. Japan Steel Works lifted by almost +16%.
European and US stocks closed robustly higher yesterday as Hurricane Irma’s damage trail was slightly downgraded. Goldman Sachs says the combined force of Harvey and Irma will leave a significant hole in global oil demand. Meanwhile Russia’s Rosneft is expecting oil prices to average $40-$43 next year according to Oilprice.com.
Despite Theresa May’s 326-290 victory in the House of Commons early this morning senior Tories are still pushing for major amendments. This morning sterling was up +0.11% overall to $1.3183 despite hitting an intraday $1.32 high yesterday. The euro was at $1.1964, up +0.02%. New UK inflation numbers emerge at 9.30am. They're likely to see an August climb to +2.8% given recent rises in the price of petrol and diesel.
- UK FTSE 100 7,413,59 +0.49%
- Dow 22,057.37 +1.08%
- S&P 500 2,488.11 +1.08%
- Nasdaq 6,432.26 +1.13%
- Nikkei 225 19,767.53 +1.14%
- DAX 12,475.24 +1.39%
- CAC 40 5,176.71 +1.24%
- Gold 1,328.70 -0.52%
- Oil WTI 47.95 -0.25%
JD Sports sales rev up
We commence with a +41% revenues climb for JD Sports Fashion for the 26 weeks to 29 July to £1,367.2m. Operating profit lifts +33% to £103.3m while basic earnings per share is up +36% to 102.7p.
JD Sports now anticipates full year numbers to be at the upper end of market expectations which currently range from £268m-£290m currently. JD shares are up +7.5% YTD at 340p.
“We have strengthened our foundations by significant progression internationally,” it says, “both in-store and online so that the JD fascia now has a much broader store and multichannel consumer reach and brand influence globally.”
Ashtead Group earnings climb
We move onto equipment rental player Ashtead Group. Rental revenues improve +17% to £828.8m with operating profit up +18% to £431.1m. Earnings per share are substantially up, +21%, to 31.5p.
“The reported results,” says chief exec Geoff Drabble, “were impacted favourably by weaker sterling but, with +17% growth in Group rental revenue at constant exchange rates, we have continuing good momentum.”
Drabble adds Ashtead saw significant expenditure in the quarter, spending £377m on capital expenditure and £116m on bolt-on acquisitions. The share price is up +36.5% in the last year. Ashtead looks likely to benefit from the US post-Hurricane re-build works.
Breaking news: Hastings insurance group has confirmed it did have talks with the AA regarding its insurance division. "The board confirms that the company did have preliminary discussions with the AA regarding a potential partnership with its insurance division, which have ceased."