- FTSE 100 trips in early trading, but hovers near highs
- S&P 500 hits new intra-day all-time high
- Brent oil dips below $79
- Primark falls behind key rivals in the retail race
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“The FTSE 100 dipped a fraction at the open but is still flirting with all-time highs, bolstered by upbeat corporate updates in recent weeks. Investors are still weighing Trump’s tariff talk, though history suggests his bark often echoes louder than his bite. Across Europe, markets have hit the pause button on their recent rally, with hopes pinned on further ECB rate cuts to keep the party going.
Markets are getting wise to President Trump’s negotiation tactics, with investors gradually shrugging off his strong tariff rhetoric as a calculated bargaining ploy. This measured response helped the S&P 500 hit an all-time intraday high, though it failed to close at a new peak, fuelled by early earnings showing 6.4% profit growth and an 18.5% rise in revenue year-on-year. Tech stocks stole the spotlight, with standout performances in Semiconductors, Software, and the Mag 7 driving the Nasdaq higher, even as most sectors closed in the red.
Brent crude oil prices dipped below $79 a barrel, extending their slide for a fifth day, as US crude inventories rose for the first time in six weeks. Meanwhile, Saudi Arabia’s oil exports surged to an eight-month high of 6.2 million barrels per day in November, even as production saw a slight decline. Elsewhere, energy markets navigated disruptions caused by Winter Storm Enzo, with Texas ports gradually reopening amid concerns over potential impacts from US trade tariffs and sanctions.
Next and M&S strutted ahead of Primark this holiday season, proving their fashion sense goes beyond the rack. Next delivered a 2% boost in total UK sales for November and December, perfectly in step with M&S Clothing & Home’s 2% rise from October to December, leaving Primark trailing behind. The pair’s ability to stitch together strong store performance with thriving online sales shows they’ve got retail all sewn up.”
Aarin Chiekrie with more detail on Primark owner ABF’s festive trading.
Aarin Chiekrie, equity analyst, Hargreaves Lansdown:
“Primark owner, Associated British Foods (ABF) enjoyed a mixed festive season, as revenue only edged slightly higher. Primark continues to be the main story, bringing in around half of the group’s revenue, but even here performance was varied across regions. Weak consumer sentiment, a strong comparative period, and unfavourable weather were all blamed for keeping Christmas shoppers from flocking to its stores in the UK, which saw the group lose market share and like-for-like sales fall 6.4% on home soil. Primark’s international performance was much better though, more than offsetting this decline. That’s thanks to the group pressing ahead with its store rollout programme, opening seven new stores across the US and Europe over the period. Despite this, Primark’s full-year revenue guidance has been lowered slightly from mid single-digit to low single-digit growth.
After a bumper period, revenue in the Sugar division has come back down to earth. Sales are expected to continue falling this year as an oversupply in the market pushes down European prices. It’s likely to be 2026 before investors see much improvement here. Luckily, ABF is home to a host of other businesses too. In the Grocery unit, the group makes customer-favourites like Kingsmill bread, Ryvita, Ovaltine, Twinings Tea and many more. Growth here and across its Ingredients division was able to pick up the slack and keep group revenue heading in the right direction. The short-term picture at ABF is likely to remain choppy, but with growth opportunities and an undemanding valuation, this could mark an attractive entry point for potential investors.”
