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Stocks rebound, ASOS slides due to sales warning

Equity markets have recouped some of their losses today after the major sell-off yesterday. 

Bargain-hunters stepped into the fold this morning, but given the heightened tensions, the optimistic mood might be short-lived.

Sky’s the limit for Sky shares as Comcast have upped their offer to 1,475p per share for the company. The announcement comes after Fox raised their bid to 1,400p for Sky. The Murdoch family control Fox, and they have been keen to own all of Sky for some time now, so a counter offer from Fox would not be a surprise. 

ASOS shares are in the red after the firm announced that full-year sales would be ‘towards the lower end’ of a 25-30% range. Sales for the four months until the end of June jumped by 22% and the UK division account for over one-third of the revenue. The growth rate might be a little cooler than previously anticipated, but it is still greatly outperforming high street competitors. The stock has been in an upward trend since September 2015, and if it can hold above the 5,400p mark it could target the 6,900p region.

DFS Furniture and Dunelm issued profit warnings. Weaker-than-expected demand hit the furniture firm, and the warm weather was partially to blame. High Street retailers have been struggling recently and the good spell of weather has encouraged the public to enjoy the sun rather than hit the shops.  

At 1.30pm (UK time) the US inflation report for June is released, and the consensus estimate is for a reading of 2.9%.

EUR/USD is higher in the wake of mixed inflation reports today. German inflation slipped from 2.2% to 2.1%, while the French inflation rate held steady at 2.3%.

GBP/USD is firm despite a mediocre update from the Royal Institution of Chartered Surveyors. The report described the UK housing market as ‘subdued’ and does not anticipate any change in the near future.

Broadcom shares will be in focus today as it was reported the company is close to acquiring CA Technologies. Broadcom has have been in a slight downward trend since November, and if the bearish trend continues it could target $230.00.

We are expecting the Dow Jones to open up 115 points at 24,815, and we are calling the S&P 500 up 11 points at 2,785. 

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