I’m sure the three winners of the huge lottery jackpot in America last night may hesitate before throwing their new found wealth into equities. It was a typically volatile day for global equities, global growth worries compounding as Japanese machinery orders fell during November at their biggest rate in 18 months, not to mention oil dipping below $30 yesterday – and as we write it barely sits above.
These ongoing worries clearly reflected in today’s session for the FTSE, with the main index closing down 0.72% at 5918.23. Some of the main stories from the day include Home Retail’s latest trading update. Argos experienced their record sales day on Black Friday, although like-for-like sales fell 2.2%. The Group have stated that they’re in talks with the proposed sale of Homebase, which would leave them to focus on the transformation plan at Argos. This potentially nudges the door a little further open for Sainsbury’s, regarding their prospective acquisition. Shares finished the day up 2.21%.
Tesco shares have performed well all week, and following the release of their results they have seen shares rise 6.13%, after a strong Christmas trading period put down to lower prices and increased staff. Group sales have fallen for the latest quarter but on a LFL basis they rose 2.1% over the six week Christmas period. The business continues its uphill battle however the recent solid results provide a glimmer of hope for now.
News that broke later in the day caused Renault shares to plummet after police raids were carried out on the company. The investigation has seemingly so far come away empty handed, apart from the large chunk they’ve taken off the car manufacturer’s stock market valuation. Merci beaucoup.