🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Blue-chips predicted to zoom to new record highs ahead of US CPI

Published 15/05/2024, 07:49
© Reuters FTSE 100 live: Blue-chips predicted to zoom to new record highs ahead of US CPI

Proactive Investors - Burberry Group PLC (LON:BRBY) results are one of those out this morning, with profits down by more than a third as the UK fashion house says the "backdrop of slowing luxury demand has been challenging", which is expected to continue in coming months.

Revenues came to £2.97 billion for the year to 31 March, down 4% but flat if exchange rate effects are ignored and in line with analyst forecasts.

Retail comparable store sales were down 1%, which was worse than the 0.8% decline that City analysts expected.

Adjusted operating profit fell 34% to £418 million but with margins of 14.1% higher than analyst estimate of 13.9%.

The outlook, where management point to "a still uncertain external environment", the first half of the new financial year is expected to remain challenging.

New FTSE highs predicted

The FTSE 100 is expected to zoom up towards new record highs on Wednesday morning, extending gains from yesterday after an upbeat Wall Street session overnight.

On spread-betting platforms, London's index was being called just over 31 points higher, having added 13 points to finish the day before at 8,428.13, just shy of a record closing high.

Last night US stocks shrugged off higher than expected factory gate price inflation figures, with the Nasdaq Composite index ending the day up 0.75%, ahead of the S&P 500 and Dow Jones Industrial Average, up 0.5% and 0.3% respectively.

The big data print of the week, or month, is today, with the US consumer price index due this afternoon.

"Something doesn’t feel right," says market analyst Ipek Ozkardeskaya at Swissquote Bank.

"Yesterday was one of those days when investors insisted on seeing a glass that was one-tenth full as completely full," she said, also noting the producer price data, new US tariffs on Chinese imports, a speech by Federal Reserve president Jerome Powell calling for patience on rates.

"All eyes are on the US CPI update today. Both headline and core inflation are expected to have moderated last month. If that’s the case, the risk rally will likely continue. And if it’s not the case, the risk rally could continue, as well," she said.

In London we have a host of corporate updates, including from Burberry, Imperial Brands (LON:IMB) and Experian.

Read more on Proactive Investors UK


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.