Slow crawl back to normality
Fiona Cincotta May 20, 2020 11:07 AM
A mixed bag of trading updates, earnings reports and dividend news is keeping the FTSE in slightly negative territory despite a more positive global background of declining infection numbers and the ongoing reopening.
A mixed bag of trading updates, earnings reports and dividend news is keeping the FTSE in slightly negative territory despite a more positive global background of declining infection numbers and the ongoing reopening. The current set of corporate earnings, though already not positive, is only a warmup for what is to come later this year as it is showing the impact of the only the first month of the corona lockdown in the UK and Europe.
Still, in amid the negative revenue reports and the general trend towards cutting dividends, any company that is keeping its dividend in place is quickly becoming very popular. This is the case with consumer debt checker Experian, which has bounced nearly 7% this morning after it said that it would leave the dividend unchanged this year.
Retailer Marks & Spencer reported a 21% hit to annual profits as clothes sales at its major stores were hit during the pandemic, but the company’s decision to speed up its turnaround programme helped lift shares 5%. The stock still has a long way to go to make up for this year’s losses at it trades just a whisker above 90, down from 215 at the start of the year.
Airlines and aerospace components makers took a further dive this morning as global travel still remains largely restricted and the likely pace of recovery for the rest of the year is looking as if it will be fairly slow.
Property firms also took a hit this morning despite government data showing that house prices held up fairly steadily in England, regardless of the onslaught of the coronavirus. On average house prices in England slipped only 0.1% from February with London prices rising 4.7% .
StoneX Financial Ltd (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.