London pre-open: Stocks seen up ahead of US retail sales, bank earnings
Sharecast
Published Apr 14, 2023 08:35
London pre-open: Stocks seen up ahead of US retail sales, bank earnings
Sharecast - The FTSE 100 was called to open 16 points higher at 7,859.
CMC Markets analyst Michael Hewson said: "European markets underwent another positive session yesterday, driven by outperformance from the luxury sector, with the CAC 40 closing at new record highs, while the DAX and FTSE100 also eked out some modest gains.
"Another big fall in US inflation, this time in headline PPI for March as well as core prices is fuelling optimism that we could start to see a similar effect filter down into the CPI numbers in the coming months, thus bringing us closer to possible rate cuts later this year.
"This may well be true, however with the US labour market still holding up reasonably well it’s hard to imagine the Federal Reserve will be in any rush to cut rates while the US economy continues to hold up reasonably well on the jobs front.
"This looks set to translate into a positive European open later this morning."
US retail sales data for March are due at 1330 BST, while first-quarter results from JPMorgan (NYSE:JPM), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) are out later.
In UK corporate news, iconic boot maker Dr Martens lowered profit guidance for the second time in four months due to higher costs at its Los Angeles distribution centre and lower wholesale revenues.
The company, which issued a profits warning in January, said it now expects core earnings of £245m for the full year, down from a previous range of £250m to £260m.
Fourth-quarter wholesale revenue was down due mainly to Los Angeles distribution centre operational issues and planned shipment reduction to Dr Martens’ China distributor, offset in part by growth in EMEA, the company said in a trading statement.
Elsewhere, online electricals retailer AO World said it expects full-year profit to be around the top end of its range of £37.5m to £45m as it continues to see positive traction from its initiatives to cut costs and improve margins.
Read more on Sharecast.com
Get The App
Written By: Sharecast
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.