UK December sales boost supermarkets, pubs
Building on a positive close on Wall Street European stocks are trading higher this morning although the DAX has been slowed down by signs of lower industrial production and manufacturing in Europe’s biggest economy.
In London Christmas sales data is giving reason for optimism as retail facing businesses ended up less hurt by Brexit than expected. Asda chalked up the biggest increase in sales among all the supermarkets but Tesco (LON:TSCO) also managed to boost sales, in contrast to Sainsbury (LON:SBRY) and Morrisons (LON:MRW).
Whether to celebrate Christmas or to drown their Brexit worries, Britons frequented pubs more often this December, according to pub operator Greene King (LON:GNK) which posted double digit sales growth. Tesco (LON:TSCO), Next (LON:NXT) and Ocado (LON:OCDO) are leading the FTSE 100 gainers this morning while Greene King (LON:GNK) notched up a 4% increase in share price.
China trade talks keeps Wall Street on the upward trajectory
China and the US are on their second day of face-to-face negotiations over trade and the best sign so far has been the absence of negative comments.
US stocks are bubbling higher as investors hope that the discussions will yield a resolution to the protracted trade dispute between the two countries and allow technology companies to regain momentum lost through lower Asian sales.
The US government remains in partial shutdown, now on its 17th day, and although some government departments are operating again a large number of employees remain on forced leave. President Trump is due to make a speech Tuesday evening on the disputed financing of the Mexican wall, the reason for his standoff with the government, but it seems unlikely that the Democrats will yield to his demands on the financing. However, Wall Street seems to largely be ignoring the friction between Trump and Congress, focusing instead on the upcoming earnings season which is still expected to show good signs of economic growth.
The dollar is mixed against major currencies, almost flat against the pound but lower against the yen and the Canadian dollar.
Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient.
Any references to historical price movements or levels is informational based on our analysis and we do not represent or warrant that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness, nor does the author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions."