After hitting lows early on indices made little progress, apart from the UK, until the US open. From there markets worked higher with flattish to smaller losses to close out the day. The split of sectors up vs down was fairly even with Food, Media, and Retail leading with tepid gains. The UK supermarket sector though rallied again post Tesco +1.2% upgrade yesterday. Autos fell a percent as did Banks.
To the downside travel agency firm Saga fell 21% post noting earnings next year will be light expectations. The firm further said they will book a £2M charge to earnings stemming from Monarch Airlines’ insolvency in October. Passengers had to be transported via other carriers which along with other costs like cancellation fees weighed. On the earnings slowdown increasing competition in the insurance sector was noted as one laggard.
Steinhoff -63% was crushed today on the prior mentioned news, closing only a bit above lows. Bloomberg noted Steinhoff notes fell 41 cents to 42 cents today as they said the ECB is a holder. 2025 bonds are also positions held by the ECB.
Pharma Novo Nordisk +3.4% moved higher on an upgrade to Buy at BofAML. Whitbread +7.6% rallied with disclosure of US-based hedge fund taking a 3.4% position.
As mentioned earlier Canada did leave rates unchanged noting export growth is expected to continue.
EU GDP is expected tomorrow along with German Industrial Production which saw a pullback last month. House prices will be in focus in the UK. DS Smith and SAS are expected to report.