Tuesday, 31 January: FTSE indices were mixed on the whole, after miners provided brief support to the FTSE 100 in early trade which was later pared back as sterling strength negated dollar inflows into larger UK stocks. Despite this, the primary FTSE index outperformed its continental peers, closing -0.27% as sterling’s fall against the euro neutralised the weaker dollar effect. Euro strength was prompted as the Eurozone economy was reported to be growing at a faster rate than the US. Figures indicated a fourth quarter pickup of 1.7%, compared with 1.6% for the US, the first time this has happened since the crisis year of 2008. However, looking at euro indices you wouldn’t know – the CAC 40 and DAX 30 closed -0.75% and -1.25% respectively.
The fallout from Trump was notable as negative sentiment weighed on indices yesterday, illustrated by a surge of 12.29% in volatility(VIX), rising the most since November 3rd as equity markets had their worst day of the year. Haven assets continued to see money flow through today on the back of this, with gold peaking its head above $1213/oz as trade in New York approached lunchtime, and the yen strengthened a shade under 1.00% against the dollar.
Britvic(+6.36%) traded higher as the soft drinks producers issued a solid trading update, reporting revenue growth in the first quarter and that the business was on track to deliver in line with full year expectations. Revenue growth was recorded in each of its key markets, with a 2.2% rise in GB, 6.3% increase in France, 7.9% growth in Brazil and 20% growth in the international division on the whole. This was enough for analyst at UBS & Shore Capital to sustain their ‘buy’ ratings on the stock.
Ocado(+2.64%) was another stock that investors took a shine to as the online grocer reported results for its recently ended financial year. Revenue growth rose on the back of an increase in the number of active custometrs and average orders per week.