Stock markets are mixed this morning after US president Donald Trump met with North Korean leader Kim Jong-un.
The historic meeting could pave the way for North Korea being brought in from the cold, if the regime lives up to its promise to end its nuclear ambitions.
Boohoo shares are lower today despite a solid trading update. The online fashion house revealed a 53% jump in first-quarter revenue. The UK operation saw sales rise by 49%, while the international division reported a 60% jump in revenue. The outlook is positive too, as the company expects to see earnings growth of between 35-40%. Boohoo’s distribution centre at Burnley is undergoing an expansion, and the aim is to be able to facilitate £3 billion worth of sales around the world. The retailer confirmed that the expansion plans are on track. The stock has been in an upward trend since April, and if the bullish move continues it could target 225p.
New Look are continuing to struggle as the company confirmed a 7.3% drop in sales and an operating loss of £74.3 million. The clothing retailer has been struggling and it entered into a company voluntary arrangement (CVA) in March. The impressive figures from online firm Boohoo, and the disappointing numbers from high-street focused New Look, underlines the difference between the two business models.
Crest Nicholson shares are in the red after the company announced a 13% rise revenue and a 2% drop in pre-tax profit. Higher costs were blamed for the drop in profit. Build cost inflation was 3-4%, but the company announced that expenses were moderating. Operating margins slipped from 19.1% to 17.2%, and the homebuilder expects full-year operating margin to be approximately 18% - towards the lower end of its previous guidance. The stock has been in decline for 13 months, and if the negative move continues it could target 400p.
GBP/USD is largely unchanged even though the UK revealed a dip in wages growth. Average earnings excluding bonuses grew by 2.8% in April, but the consensus estimate was for earnings to remain at 2.9%.
EUR/USD edged lower after Germany revealed a disappointing ZEW economic sentiment report. The June reading was -16.1, while economists were expecting -14. This is concerning as other economic indicators from the eurozone have also been subpar lately.
Comcast will be in focus today as the company is preparing to formalise its all-cash bid for Fox. The move is dependent on AT&T’s offer for Time Warner obtaining approval from the US District Court.
We are expecting the Dow Jones to open down 2 points at 25,320 and we are calling the S&P 500 flat at 2,782.
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