This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
For those holding shares in the UK banks, the ‘hold onto your hats’ period is over with most coming out of this week relatively unscathed. Barclays shares came out as the top performer, with movements from Lloyds and RBS comfortable for most. Phew!
Today has seen International Consolidated Airlines’ shares soar off the back of their latest round of results, with shares peaking around 7% higher, which has been long awaited relief for those holding at pre-referendum levels. The sector remains amongst the hardest affected by the EU referendum and they still trade some 25% lower than before that fateful day 4 months ago! Sector peer easyJet is still a whopping 67% lower than in June. It might be one hell of recovery, but is it on the cards after today?
So who’s next? The coming week sees two of the largest UK Housebuilders, Berkeley Group and Persimmon, giving their latest updates. Both companies have seen a remarkable bounce from their lows reached in the aftermath of Brexit. Could the release of their earnings provide another boost to the sector? Note, eyes will also be on the BoE Rate decision this Thursday to see if Mark Carney and co change current monetary policy.
Also this week, we are graced with numbers from three UK Index -100 listed behemoths on Tuesday. Oil
sector giants Shell and BP (the first and third largest on the index) both report, while pharmaceutical powerhouse Shire also shows us its hand. Why is this important for you to keep an eye on? Not only do these companies constitute 16.4% of the entire index, but their dollar denominated products are almost certain to have been influenced massively by the recent performance of the Pound Sterling in relation to its currency peers. Will results perform as expected or surprise? What would each of these mean for the UK Index as a whole?
Most importantly, let’s not forget that the US election is only two weeks away. It’s reaching its final climactic fortnight and market favoured Democratic candidate Hillary Clinton is seemingly pulling away in the polls. However, could we see our excitable American counterparts throw a curve ball and elect Trump to be the most powerful man in the world? How would markets react to that?
With the biggest event in the world coming in just 11 days, there’s no way you can afford to not be involved! Make sure you’re clued up after the clocks go back this weekend on the latest goings on by signing up to receive our research.
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research
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