Wednesday, 12 September: Unfortunately, the record refuses to change and trade worries continue to loom over global markets and investors. Yesterday’s provocation from China contacting the WTO in regard to the US wasn’t enough to falter Wall Street, which had a strong session on Tuesday. However overnight Asian markets fell, the Nikkei dropped 0.27% alongside the Hang Seng’s fall of 0.28%. European shares overcame early speculation of a downbeat session and broadly all posted healthy gains, with the FTSE eventually closing 0.55% higher. London shares have the added Brexit turmoil to deal with and consequent currency havoc. With rumours plaguing May’s leadership the pound has fallen lower, to cut a long story short, it creates yet another obstacle in the Brexit deal process. Of course, with the pound falling, those listed on the FTSE whom generate most their revenue outside the UK, are given an extra boost, hence explaining the FTSE outperforming many other large European bourses today.
Galliford Try and Dunelm were two of the largest climbers on the day, both residing on the FTSE 250. Home furnishing retailer Dunelm saw shares end close to 12% higher after reporting a boost to pre-tax profit for full-year 2018 after lower booked costs associated to their Worldstores acquisition. Revenue climbed 9.9% and it seems the business look to take a more direct marketing approach in the UK, raising brand awareness through multichannel campaigns. Galliford Try beat market expectations with higher adjusted pre-tax profit, with the group’s housing business Linden performing strongly. Overall fiscal profit has more than doubled with broad improvement across all divisions, causing shares to close the day 10.5% higher.
Goals Soccer Centres have been the latest ‘victim’ of the weather, with first half results swinging to a pre-tax loss from the impact of cold weather earlier in the year. The beast from the east provided a scapegoat for far too many players looking for an excuse on the Whatsapp group. Shares did however close 3.5% higher today following the trading statement, as they have commented on a strong start to the second half. Likely helped by a hoard of slab head wannabes and the improved weather we saw this summer, with brokers believing LFL sales have recovered so strongly they are ahead year-to-date.
As we commence, oil has breached $80 p/bbl during the day’s session after sanctions imposed on Iran and Wall Street has begun well, with the Dow already 0.5% higher. The squeeze on the oil supply also comes as US production is expected to dwindle, explaining the price surpassing $80 for the first time since May.