CMC Markets | Jun 27, 2019 10:47
Stocks are on the rise this morning as traders look ahead to the G20 summit which begins tomorrow. The meeting between Donald Trump and Xi Jinping on Saturday should be the highlight of the meeting of global leaders. Mr Trump has threatened additional tariffs on China if the meeting doesn’t go well, but investors are optimistic that the foundations will be laid for further trade negotiations.
Serco (LON:SRP) shares have rallied this morning after the company said it expects full-year revenue to come in at the top end of the previous forecast of between £2.9 billion and £3 billion, and the group maintained its underlying profit guidance of approximately £105 million. The group halted its dividend in 2014, and this morning it said it will consider resuming the dividend depending on how 2109 goes in terms of performance. The fact the group is considering paying a dividend again, suggests the firm’s restructuring plans have been successful, and that has lifted investor confidence too.
Bayer (LON:0P6S) confirmed it has a new legal approach to tackle the multi-billion dollar legal cases in relation to the Glyphosate situation. There are more than 13,000 legal cases being brought against the company in regards to the weed killer, Roundup. The pharma company has hired an external lawyer to fight the battle, and the news has received support from Elliott Advisors, which holds a €1.1 billion stake in the company.
Greene King (LON:GNK) revealed a largely positive set of full-year figures. Adjusted pre-tax profit edged up by 1.6% to £246.9 million, which exceeded the forecast of £243.9 million. Like-for-like-sales increased by 2.9%. The pub group cautioned that consumer and political uncertainty are likely to weigh on confidence and costs are likely to remain an issue.
EUR/USD is a little weaker, as the rebound in the US dollar since Tuesday continues. Spanish CPI cooled to 0.6% in June from 0.9% in May, and the reading points to falling demand. Italian consumer confidence slipped to 100.8 from 101.9, and that is a sign that consumers are becoming more cautious.
KB Home (NYSE:KBH) will be in focus today after the group posted respectable second-quarter figures last night. On an annual basis, the number of home delivered increased by 2% to 2,768, topping the 2,468 forecast. The order book jumped by 13% in terms of value, but it is worth noting that average selling prices cooled by 8%, and that could be a sign the housing market is past its peak.
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Written By: CMC Markets
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