- FTSE edges higher at the open
- B&M results in-line, but outlook doesn’t excite
- US markets rise on positive jobs report
- Oil gives back some recent gains
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“UK markets have made another step in the right direction this morning, albeit a small one. The FTSE 100 opened a smidge higher, as investors look eager to shrug off US trade drama. It’s perhaps a signal that markets have moved on from reacting to every new development.
It hasn’t been the easiest of years for discount retailer B&M, and when new CEO Tjeerd Jegen joins in a week or so, there’s plenty of work to do. Shares have come under serious scrutiny over the past 12 months, as higher costs coupled with weak underlying growth in the UK paint a murky outlook for margins. The store expansion project and some productivity-boosting initiatives are helping to keep a check on things, but it’s hard to get too excited while the profit outlook looks uncertain.
US markets have been riding a wave of bullish momentum this week. Yesterday was a repeat of Monday, with markets shaking off weak futures trading ahead of the opening bell to finish strong. Both the S&P 500 and Nasdaq shrugged off early weakness – largely sparked by the OECD trimming its global economic growth forecast. But, for now at least, investors seem eager for any excuse to buy. Yesterday’s encouraging jobs report delivered just enough optimism to nudge markets another step closer to the record highs set back in February.
Oil prices gave back some recent gains as markets digested OPEC+ plans to boost output and lingering concerns over global growth and trade tensions continue to weigh on the demand outlook. But a larger-than-expected drop in US crude inventories and ongoing geopolitical risks – from the Russia-Ukraine conflict to potential disruptions in Iran and Canada – helped limit further losses. Supply-side uncertainties continue to provide a floor for prices.
