Stock markets are in positive territory this morning as Kim Jong-Un, the North Korean leader, has stated he is willing to meet US president Donald Trump.
The announcement from the North Korean premier has lightened the political mood, and this has buoyed investor sentiment.
Wesfarmers, which owns Homebase, has agreed to sell the DIY chain to Hilco for £1. Traders foresee store closures, even though none have been confirmed yet. Shares in Kingfisher and Travis Perkins are in demand this morning as investors predict both companies will benefit from the potential disruption at Homebase. Weak sales across the UK DIY sector as a whole was part of the reason Wesfarmers decided to dispose of Homebase.
Pennon Group shares are higher this morning after the company announced a 3.5% rise in profit and a 2.9% jump in revenue. The divided was 38.59p, up 7.3% from last year. The company cited falling costs and higher net tariffs for the strong performance. A change in attitudes towards recycling is likely to assist the company in the medium to long term. Pennon confirmed there has been strong demand for energy recovery facilities and waste services. The share price gapped higher this morning, and if it holds above the 200-day moving average at 733p, it could target 800p.
EUR/USD is up on the day after the German IFO business climate report showed improvement. The May reading was 102.2, up from 102.1 in April, while economists expected 102 Germany has been going through a soft patch recently, and the better-than-expected report could stem the sell-off in the euro.
GBP/USD experienced volatility when the first-quarter UK GDP came in at 0.1%, meeting estimates. Sterling still hasn’t broken out of the downtrend it has been in recently, and if the bearish move continues it could target 1.3300.
We are expecting the Dow Jones to open up 70 points at 24,881 and we are calling the S&P 500 up 7 points at 2,734.
CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.