The FTSE 100 is playing catch-up with the rest of Europe following the UK bank holiday yesterday. The positive sentiment in the US on the back of the trade deal with Mexico has boosted sentiment in Europe. Trade concerns have been hanging over global markets for months, and the US-Mexico deal proves that there is light at the end of the tunnel.
Bunzl (LON:BNZL) shares are in demand after the company posted a 5% rise in first-half revenue and a 3.86% increase in an adjusted profit before tax. The company raised the interim dividend by 9%, and it is worth noting the firm has a 25 year track record of lifting the dividend. Bunzl said it is confident that its prospects are positive, but expressed concerns regarding North American tariffs and Brexit. The share price has been broadly pushing higher since March, and if the positive move continues it could target the 2,500p region.
Lloyds (LON:LLOY) shares are a little higher this morning after the bank confirmed it completed the £1 billon share buyback scheme that it announced in February. This is a sign the bank is in rude health as it has spare cash to return to shareholders. The stock has been in a downward trend since January, and while it remains below the 64p region its outlook might remain negative.
CRH (LON:CRH) share price is under a little pressure this morning after the JP Morgan trimmed its price target for the company to €36, from €37.
EUR/USD has been helped by the dip in the US dollar. The greenback still hasn’t recovered from the comments made by Federal Reserve chief Jerome Powell on Friday. The central banker issued an optimistic outlook for the US economy, but said there is no risk of over-heating, and traders used this as an excuse to dump the US dollar. France and Italy released consumer confidence reports this morning, and French repot met economists’ expectations, while the Italian update came in just shy forecasts.
At 3pm (UK time) the US Conference Board will release the latest consumer confidence report, and the consensus estimate is 126.8, and that compares with July’s 127.4
Ionis Pharmaceuticals (NASDAQ:IONS) will be in focus today after the FDA decided not to approve its application for Waylivra. The stock fell in after-hours trading last night, so there might be more selling pressure today.
We are expecting the Dow Jones to open up 26 points at 26,075 and we are calling the S&P 500 up 2 point at 2,898.
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