FTSE and pound await inflation data
It was all pretty quiet this Tuesday morning, with the UK markets awaiting the final inflation figures from 2017.
The FTSE basically just reclaimed the mild losses it endured during Monday’s Carillion-focused trading, climbing 0.1% to lurk the wrong side of 7780. Sterling, meanwhile, was even less interested in showing its hand this early; the pound dipped 0.1% against the dollar while rising 0.1% against the euro.
It’ll be interesting to see how sterling reacts to Tuesday’s latest inflation reading. Analysts are forecasting the figure will slip from 3.1% in November to 3.0% in December, in what could be the first stage of it unwinding the rapid rise seen in the second half of 2017. Now, 3.0% is still very high, especially with wage growth constantly trailing behind; yet a reversal will only further delay a Bank of England rate hike, something that could pull cable away from its recent post-Brexit referendum peak.
Elsewhere Greggs (LON:GRG) delivered a steaming hot pastry filled with fourth quarter goodness this Tuesday, jumping nearly 3.5% as it posted a 7.4% rise in total sales and an even more impressive 3% increase in like-for-likes. The high street chain has made a series of savvy decisions in the last year or so, including the introduction of drive-thru stores and delivery, as well as a healthy food range, and it’s clearly paying off, with the brand aiming for a McDonald’s (NYSE:MCD) style eat here any-time of the day approach rather than its previous lunch-focus.
Even better this Tuesday was the showing from JD Sports (LON:JD). The retailer – which, remember, Mike Ashley promised to wipe off the high street – rocketed 8.5% to a 7 month high as it boosted its profit forecasts for the second time since September after sustaining 3% like-for-like sales growth in the back end of its financial year. The stock was plagued in 2017 by fears that the athletic-leisurewear trend was cooling – this most recent update seems to have gone some way to alleviating investors’ concerns.
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