Skip to content

Morning Round-Up: Carillion, GKN and Martin Luther King Day

Morning Round-Up: Carillion, GKN and Martin Luther King Day

The FTSE is flat in early trading this morning despite further records in the US markets on Friday, buoyed by results from banks JP Morgan and Wells Fargo.

GKN was this morning’s best performer following last week’s rebuffed Melrose Industries offer, up 2.2% while the big story surrounds Carillion as the government contractor enters compulsory liquidation.

CMC Markets analyst, Michael Hewson commented “The likelihood of a government bailout would appear to be remote, though the outstanding public sector contracts are set to taken in-house and run by the UK government. In terms of assets Carillion based on its 2016 accounts has tangible plant and machinery of £144m, a fraction of its overall debts, not to mention the £800m pensions liabilities.”

The Dollar remains weak against the Pound and the Euro. FxPro analyst, Edward Anderson noted “Recent inflation and retail sales data from the US has done little to halt the recent USD sell-off. With the global economy accelerating at a higher pace than the US and the tightening of global monetary policy the USD will continue to suffer.”

The US equity markets finished the week with another record breaking session “buoyed by results from banks JP Morgan and Wells Fargo and Energy names were supported by oil prices continuing to push higher.” suggested Accendo Markets analyst, Mike van Dulken. “A weaker USD helped even after supportive macro data, perhaps fuelled by President Trump threatening the Iranian nuclear deal and NAFTA.”

“Given that today’s Martin Luther King Day, meaning there’s no chance of an energy-injection from the US, trading may remain relatively subdued, especially with the Carillion crisis casting a shadow over the UK economy.” added Spreadex analyst, Connor Campbell.

Share this article

Invest with these platforms

Hargreaves Lansdown

IG

Interactive Brokers

Interactive Investor

Charles Stanley

IG

Interactive Brokers

Charles Stanley

Looking for great investing ideas? Get our free newsletter.
Join our UK news channel on WhatsApp

This article does not constitute investment advice.  Do your own research or consult a professional advisor.

Learn with our free 'How to' Guides

Our latest in-depth company reports

On the podcast

Sign up for great investing stock tips

Thanks to our Site Partners

Our partners are established, regulated businesses and we are grateful for their support.

Aquis
CME Group
FP Markets
Pepperstone
Schroders

TMX
WisdomTree
ARK
FxPro
CMC Markets
Back To Top