skip to Main Content

Free Newsletter: Actionable insight every morning for the self-directed investor. Find out more


The major drag on the UK index this Wednesday was Next, which plunged more than 10% after revealing a rather troublesome post-Christmas trading statement. With full price sales dipping 0.4% across the holiday period the retailer was forced to lower its annual pre-tax profit guidance to £792 million from the previously stated £785 million to £825 million. On top of that Next warned that it was ‘preparing the company for tougher times’ thanks to the impending sales-impact of rising inflation in 2017. Understandably this news had wider ramifications for the retail sector as a whole, with Debenhams, Primark-owner Associated British Foods and Marks & Spencer all slipping between 4% and 5%.

This retail revolt left the FTSE flat at 7175, with solid gains in the commodity and banking sectors helping to prevent the index from dipping into red-territory. A flash of green for the pound also hampered the FTSE this Wednesday, with sterling taking 0.3% off the dollar and 0.1% off the euro. Still to come this morning is December’s construction PMI, with analysts expecting a slight decrease from 52.8 to 52.6 month-on-month.

The Eurozone was hardly much more interesting this Wednesday; the DAX and CAC both rose a meagre 0.1% as they await the region’s services PMIs. The Eurozone-wide figure is set to be confirmed at 53.1, a decline from November’s 53.8.

Become a better investor with SharePad Designed to give you the confidence to pick your own investments, Sharepad gives you access to a wealth of information on UK, US & European stocks. Find out more

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Connor Campbell

Connor Campbell

Connor joined Spreadex in 2014 as part of a newly expanded financial analyst team after graduating from the University of Southampton with an MA in English. His focus is on providing Spreadex's customers with up-to-date and informative news, and is responsible for the market analysis found on the Spreadex website.

Connor produces three daily market updates, a daily stock earnings preview, a weekly financial market preview piece every Friday, a round-up of all the big financial stories making the weekend press every Monday morning and regular stock market features.

Stocks in Focus

Here are some of the smaller companies we are following most closely. They all represent significant growth stories in our view. Our in-depth reports go into more detail on why we like them.


Back To Top