Attention may well be very much focused on how events across the Atlantic unfold in today’s Presidential vote, but closer to home it’s been a busy start to the session in London as traders digest a wealth of earnings updates from some of the UK’s largest companies.
By Tony Cross, Monk Communications
Associated British Foods is impressing once again and even though the collapse in the Pound is seen as something of a double edged sword, the improved margins in the food business and increased selling space at Primark is being well received, making the shares the best performer in early trade.
Marks and Spencer may have disappointed at the top line this morning as was expected with underlying profits for the first half of the year off by almost 20%, but more news of strategic change and expanding the overseas footprint using a franchise model is being seen as positive for the high street stalwart, again driving shares higher. At the other end of the leaderboard, Imperial Brands is struggling with its latest results including news of capital spending plans that are going to weigh in the medium term.
We have UK manufacturing production data due for release later today and this could provide some direction for markets in general – especially on the basis that volumes will likely be depressed as we wait for an outcome from US polling which we think will be seen before London opens for business tomorrow. A Clinton win may be looking more likely than it was a week ago and is by all accounts the market’s preferred outcome, but we’ve been surprised before – and the risk of Trump not accepting defeat gracefully needs to be taken into account, too.
