Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Stocks Rebound Amid Iran Tensions; Aston Martin Tumbles

Published 07/01/2020, 11:15
Updated 03/08/2021, 16:15

Even though tensions between the US and Iran remain high, sentiment in equity markets has turned positive, as European indices are showing modest gains this morning. The fact US markets ended yesterday’s session higher paved the way for buying in Asia overnight as well as in Europe this morning. The gains might be limited seeing as the political situation is far resolved but it would appear that some of the fear has evaporated for now.

Aston Martin (LON:AML) shares have tumbled on the back of a profit warning. The high-end automaker has had a rough ride in recent months as the stock was hammed in July when it issued a profit warning. The firm had a ‘disappointing’ year, and it now predicts that full-year earnings will be £130-£140 million, which would be a major drop off from the £247.3 million posted last year. The European division underperformed in terms of volumes. Aston foresees that margins will be squeezed to be between 12.5% and 13.5%. The stock has been under pressure lately, and while it remains below the 50-day moving average at 506p, the bearish trend is likely to remain in place.

Morrisons' (LON:MRW) shares are a little higher this morning as the company announced it expects full-year profit before tax to be in line with current expectations, even though the supermarket group revealed a 1.7% fall in group like-for-like sales excluding fuel for the 22 week period until early January. Excluding fuel, total sales were down 1.8% for the period. The group’s CEO claims the firm is ‘well set for 2020.

888 Holdings (LON:888) issued a positive trading update as the group expects to achieve it target in terms of earnings. The gaming company confirmed that poker has ‘remained challenging’, but on a more optimistic note it said it entered 2020 with ‘good momentum across serval regulated markets’. The announcement was light on details so there was little for traders to sink their teeth into.

As far as traders are concerned, Safestore (LON:SAFE) continues to be a safe pair of hands as full-year underlying earnings increased by 5.5%, and LFL average occupancy for the year increased by 3.5%.

The headline eurozone CPI rate jumped from 1% to 1.3% - meeting forecasts, while the core reading remained unchanged at 1.3%. It is encouraging to see that headline inflation is on the rise in the region, but it is still a long way off from the European Central Bank’s target of close to 2%. On a month-on-month basis, retail sales jumped by 1%, which was a big improvement on the 0.3% decline in October. EUR/USD's reaction was muted.

We are expecting the Dow Jones to open 7 points higher at 28,710 and we are calling the S&P 500 up 1 point at 3,247.

DISCLAIMER: CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed.

No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

Original Post

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.