ADVFN Morning London Market Report: Monday 13 July 2020

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London open: Stocks rise as investors eye US earnings season


London stocks rose in early trade on Monday, taking their cue from gains in Asia, with investors cautiously optimistic about the US earnings season despite ongoing concerns about the coronavirus pandemic.

At 0840 BST, the FTSE 100 was up 1% at 6,157.41.

The US earnings season gets underway this week with the likes of JPMorganWells Fargo and Citigroup among those slated to report.

Oanda analyst Jeffrey Halley said: “I expect that trading revenues will outperform once again as market volatility continues. More attention is likely to be given, however, to the big banks’ forward guidance on the global economy, and the level of bad debt provisioning.

“Depending on whom you talk to, S&P 500 earnings are forecast to broadly fall by 30% to 40% year-on-year, although within that, there will be apparent winners and losers.”

The positive tone in markets came despite a rise in new coronavirus infections in the US and elsewhere.

“The pandemic will continue to dominate the headlines,” said CMC Markets analyst David Madden. “On Sunday, the WHO said that another record was set for the number of daily cases. For the fourth day in a row, the US registered over 60,000 new cases. Countries like India and Mexico are seeing a rise in the number of new cases too.”

In equity markets, travel stocks paced the gains, with British Airways parent IAGInterContinental Hotels, Premier Inn owner Whitbread, budget airline easyJet and cruise operator Carnival all in the black.

Elsewhere, gold miner Centamin gained after it reported higher second-quarter production and said it was on track to meet full-year guidance as it said the pandemic had not materially affected operations.

Security services firm G4S was the top performer on the FTSE 250 after it said first-half profit would be significantly ahead of market consensus and that it would bring forward its results announcement to the week beginning 20 July.


Top 10 FTSE 100 Risers

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# Name Change Pct Change Cur Price
1 Evraz Plc +3.58% +10.70 309.80
2 Carnival Plc +3.45% +34.00 1,020.00
3 Fresnillo Plc +2.96% +27.80 967.80
4 Scottish Mortgage Investment Trust Plc +2.52% +23.00 934.00
5 Anglo American Plc +2.30% +44.20 1,969.20
6 Smith (ds) Plc +2.29% +6.20 277.30
7 Intercontinental Hotels Group Plc +2.28% +86.00 3,860.00
8 Compass Group Plc +2.24% +25.00 1,140.00
9 Burberry Group Plc +2.16% +33.50 1,583.50
10 Rio Tinto Plc +2.08% +96.00 4,712.00


Top 10 FTSE 100 Fallers

Sponsored by
76.4% of retail CFD accounts lose money.


# Name Change Pct Change Cur Price
1 Micro Focus International Plc -3.09% -10.00 314.10
2 Melrose Industries Plc -1.27% -1.50 116.75
3 Associated British Foods Plc -0.51% -10.00 1,935.00
4 Ocado Group Plc -0.25% -5.00 1,997.00
5 Barclays Plc -0.24% -0.28 117.48
6 Taylor Wimpey Plc -0.14% -0.20 144.80
7 Bunzl Plc -0.05% -1.00 2,196.00
8 Informa Plc -0.05% -0.20 440.10
9 Kingfisher Plc -0.04% -0.10 224.70
10 Admiral Group Plc -0.04% -1.00 2,285.00


Monday newspaper round-up: High street footfall, airport jobs, Itsu

A group of 84 of the world’s richest people have called on governments to permanently increase taxes on them and other members of the wealthy elite to help pay for the economic recovery from the Covid-19 crisis. The super-rich members, including Ben and Jerry’s ice cream co-founder Jerry Greenfield and Disney heir Abigail Disney, called on “our governments to raise taxes on people like us. Immediately. Substantially. Permanently”. – Guardian

Shoppers were allowed to return to the high street in June as stores began to reopen in England and Northern Ireland, but figures show that few chose to do so. Retail footfall collapsed by 65% compared with the same month last year, according to research by data company Springboard. The latest figures are an improvement on the 73% year-on-year decline in May, but highlight the challenges facing retailers and hospitality companies as they try to encourage worried customers to return as the coronavirus lockdown eases. At the same time online shopping has soared, as consumers browse and order from the comfort and safety of their home. – Guardian

Britain has become Europe’s “zombie” capital, accounting for a third of the region’s indebted companies kept alive by record low interest rates and bailouts. The share of UK non-financial businesses which were “zombies” has jumped six percentage points to 15pc in the last year, the highest level in Europe, according to data from Bank of America. – Telegraph

Airports are set to axe up to 20,000 jobs unless the Government intervenes by waiving business rates to help them cope with the Covid-19 crisis, ministers have been warned. The Airports Operators Association (AOA) today announces its appeal for urgent business rates relief to bring the industry in line with the hospitality, leisure and retail sectors and other nations that have benefited from such support. -Telegraph

Itsu has joined the growing list of restaurant chains to explore restructuring options as the coronavirus crisis continues to reshape the high street. The sushi and healthy Asian food chain’s appointment of advisers to look at options including a company voluntary arrangement (CVA) comes as the administrators of Casual Dining Group enter exclusive talks over a sale to Epiris, a private equity firm. – The Times


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