US-China trade talks continue and that has boosted European stock markets. The fact that trade discussions are taking place is seen as a positive by traders, but there are no guarantees that anything will come of the talks. The two countries have been engaged in a protracted trade dispute, and seeing as the language has cooled in recent months, investment sentiment has ticked up.
The feel good factor is being helped along by the news that US lawmakers have reached a tentative deal that would prevent another shutdown.
TUI (LON:TUIT) shares are in the red after the company registered a first-quarter net loss of €111.9 million, and that compares with a loss of €68.3 million in the same period last year. Turnover for the first three months of the year ticked up by 4.4%. Like its competitors, TUI blamed the unusually warm summer in Europe and the relatively weak pound for the loss. The company said its growth strategy is still intact, and the company anticipates earnings to be largely stable in 2019. The stock has fallen to its lowest level in over two years, and if the bearish move continues it might target the 800p area.
Debenhams (LON:DEB) confirmed they have secured a £40 million loan facility for 12 months. The retailer issued a string of profit warnings last year, and this new lending facility will act as a lifeline in the medium-term. The stock has rallied as the access to funds will give the group some much needed breathing space. Credit lines are all well and good, but Debenhams needs to undergo major restructuring to ensure its long-term survival.
Spire Healthcare (LON:SPI) was downgraded by Credit Suisse (SIX:CSGN) to underperform from neutral, and the bank slashed their price target to 85p from 170p.
CYBG (LON:CYBGC) declared it will enter into a joint venture with salary finance .The move will cost CYBG £500,000 and the fintech platform will complement the group’s lending business. The London-listed bank is keen to keep up with industry trends as 40% of British clients are availing of fintech services.
Amazon (NASDAQ:AMZN) shares will be in focus today after the company announced it is acquiring Eero, for an undisclosed amount. The decision by the internet giant is seen a sign they are determined to expand into smart home technology. Amazon have disrupted the retail industry, they are moving into the healthcare sector ,and now this, and it is clear they want to imbed themselves into every part of your life.
We are expecting the Dow Jones to open 147 points higher at 25,200 and we are calling the S&P 500 up 14 points at 2,724.
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