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Morning Shot: Election Snaps Back

Published 09/06/2017, 08:21
Updated 09/07/2023, 11:32

There is only one place to start! After calling a snap election when her party was way ahead in the opinion polls, PM May has managed to lose the control of the political situation in the UK and now we have have a hung parliament. For those trading today the calls for the FTSE 100 is to open higher as many UK companies denominate their profits in other currencies. The mid to small caps will be a different story. In Asia, the markets traded mixed after the news with the Nikkei 225 higher by 0.46%, ASX (SG:ASX) is flat and the major Chinese indices are up an average of 0.35%.

In terms of UK equities, the main companies I would keep and eye on are the high street retailers. Dixons Carphone (LON:DC), Next (LON:NXT), Marks and Spencer (LON:MKS) and Primark owner ABF (LON:ABF) all are negatively affected by a weaker sterling as they import goods into the UK and will now have lost some of their margins. The oil companies will now benefit from a weaker GBP when they bring profits back to the UK, one thing to remember those companies that are paying to start operations will take a hit.

Copper has had a good night and is now trading high by around 2.5% since yesterdays open with supply still disrupted at Escondida in Chile. Even after the hung parliament vote gold could not get to the $1300 level stopping just shy at $1294. Oil is trading in a subdued fashion as the supply glut takes the commodity down to $45.50. Palladium has hit yearly highs once more breaking through the $858 resistance level.

Morning Stories:

Fuller, Smith & Turner report FY adj. EPS +5%, DPS +5%, and Co. notes impending cost pressures.

Centrica (LON:CNA) announce partnership to sell Canadian E&P business to be sold to consortium for CAD 722M in cash.

What to look out for:

A press conference from PM May with reports suggesting it is 10.00 BST, UK Manufacturing Production and Canadian Employment Change.

Original post

Latest comments

Please guide copper trend on next working days.please
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