FTSE higher, Europe closed for Labour Day

The FTSE is trading higher this morning helped by a rally in Sainsbury which staged a recover after its failed bid for rival chain Asda.

The FTSE is trading higher this morning helped by a rally in Sainsbury which staged a recovery after its failed bid for rival chain Asda. The company’s Chief Executive Mike Coupe, the man behind the merger idea, managed to reassure investors that the supermarket has the capacity to improve earnings and halt declining sales even without the acquisition, by cutting debt and improving more than 400 of its shops.


On the losing side of the FTSE were Just Eat, which has lost its chief executive at the beginning of this year and is struggling to appease investors about weaker growth, and housebuilder Persimmon which warned about rising costs, echoing a similar message from rival Taylor Wimpey. However, there was some positive news for housebuilders as data showed that British house prices continued to rise, albeit at a slow pace. First time buyers played a key role despite the uncertainty over Brexit as low interest rates and low unemployment helped them to step on the housing ladder.

Apple results to help Wall Street

Most of European markets are closed today for the May Day holiday. In the US a 5% rise in Apple shares following a positive earnings report afterhours Tuesday should bode well for the start of trading on Wall Street.

The pound seems undeterred by the UK local elections Thursday and is trading higher against the dollar and the euro. The euro also staged a recovery against the dollar, backed by a slight increase in Europe’s first quarter GDP numbers and German CPI.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.