This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
The divergence between Chinese markets and economic data has seen investors struggling to decipher the confusing picture coming out of Asia.
The Shenzhen might still be suffering from volatility, but European traders have decided to focus on the improving Chinese trade balance.
Overnight trading has seen oil break below $30 a barrel as bearish momentum towards the commodity has picked up pace. Adding to the confusion has been rumours circling the markets that an emergency OPEC meeting could be called.
Yesterday saw Sainsbury’s increase its market share in contrast to the other big four food retailers and today’s trading statement highlights why, with increased sales but falling profits. Disappointingly, Sainsbury’s has not offered any more clarity on what its plans are following its bid for Home Retail Group. The synergies between the two, especially the Argos arm, are clear for all to see.
Barratt Developments has followed the template of other housebuilders, with improving sales and profit margins along with the acquisition of more land. With the headwinds of changes to tax for the buy-to-let market, and the uncertainty of Brexit, Barratt might be cautious about helping the chancellor with his home-building target.
There are mixed fortunes in the oil sector with Premier Oil suspending its listing, while Tullow Oil talks optimistically about its hedging policy for 2016, secured at $75 a barrel. With BP announcing a 5% cut in total global jobs these low prices are squeezing both the little and the large.
This afternoon will see the latest US oil inventory figures released, but with the US finally seeing a cold snap demand might finally start to play a part in prices.
Ahead of the open we expect the Dow Jones to start 68 points higher, at 16,584.