Wednesday, 28 September: European bourses closed higher after rallying from Tuesday’s losses, and a calmer sentiment prevailed throughout markets as all eyes were on the OPEC meeting drawing to a close today. Brent crude stabilised somewhat following volatility of the last few days.
Sainsbury’s slipped lower (-3.77%) on the announcement of its second quarter trading statement. The FTSE 100 supermarket chain said total retail sales in the 16 weeks ending September 24 fell by 0.4% year-on-year excluding fuel, making for a flat read inclusive of fuel. Like-for-like retail sales declined by 1.1% excluding fuel and by 0.5% including fuel. Sainsbury’s said its results were hit by continuing deflation in UK food prices, but noted that it achieved like-for-like transaction growth and volume growth. Competition in the sector is becoming increasingly intense as ALDI announced on Monday that it took a hit on its profit margin in order to sustain market share. Argos achieved total sales growth of 3.0% in its second quarter ended August 27, with a like-for-like sales increase of 2.3% year-on-year.
At the close European indices were up with the FTSE 100 +0.61%, the CAC 40 +0.77%, and the DAX 30 +0.74%.