- FTSE 100 close at 7,541.1 (-0.3%)
- Cineworld rises after a strong December
- Currys declines after Christmas trade update
- Oil posts more gains
- USD climbs higher despite weak US data
- UK GDP hits pre-pandemic peak ahead of Omicron
- Bitcoin stable, Doge outperforms on Tesla news
By Samuel Indyk
Investing.com – Friday’s IPO ended lower amid global stock weakness after disappointing US data and bank earnings. and the data both missed estimates, while (NYSE:) slipped after fourth-quarter results.
Domestically, Cineworld (LON:) was the focus following its December trading update. The cinema chain operator said it was cash flow positive in the fourth quarter as group sales returned to 88% of 2019 levels in December.
“Cineworld was put on track to return to pre-pandemic levels with revenue in the fourth quarter with the release of films such as the latest installment in the Spiderman franchise,” said Russ Mold, AJ Bell’s investment director, “anticipating releases of a Rebooted Top Gun movie and the latest Jurassic World adventure should help this year as well.”
Currys (LON:) was a notable underperformer, falling over 6% following its Christmas trade update. In the 10 weeks ended Jan. 8, 2022, the electronics retailer’s like-for-like sales declined 5% compared to the prior-year period. Adjusted profit before tax for the full year is now expected to be around £155m, down from the previous forecast of £160m.
“The news that the group is slightly downgrading its full-year guidance was not well received,” he said Hargreaves Lansdown (LON:) equity analyst Matt Britzman. “Those who are looking longer-term should take comfort in the fact that the medium-term goals are intact and the planned share buyback is beginning.”
and crude oil futures were higher again, heading for a fourth straight week of gains as fears that the Omicron variant would cause another major slowdown in the global economy continue to wane. Meanwhile, the supply picture remains fragile as analysts at JPMorgan this week forecast a price hike of up to $125/barrel this year as OPEC spare capacity tumbles.
The USD pared some of its weekly losses on Friday but was still headed for its fourth consecutive week of declines.
GBP was weak despite strong growth numbers. The UK grew 0.9% mom in November, bringing the economy back above its pre-pandemic peak. The strong growth came ahead of the launch of the Omicron variant in the UK and growth is expected to have moderated over the past month, but whether this will be enough to deter the Bank of England from further tightening in February remains to be seen wait and see
“The decline in GDP in December and January may not be much more than half a percent, not least because recent booster vaccine and testing expansions may help boost healthcare spending even further and offset weakness elsewhere,” ING said Analysts in a Research Note. “For the US dollar, this suggests that the chances of a February rate hike are increasing.”
was relatively stable but traded below $44,000 heading into the weekend.
“Bitcoin encountered resistance a little short of the December support zone and may see $40,000 come under renewed pressure,” said Craig Erlam, senior market analyst at OANDA. “This level will likely be heavily protected, so it will take a big push to break this support.”
was the outperformer in the cryptocurrency space after Tesla (NASDAQ:) announced it would start accepting the meme-based token on its online store.
Subscribe to Investing.com UK here
Disclaimer: Fusion Media would like to remind you that the data contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indices, futures) and forex prices are not provided by exchanges, but by market makers. Therefore, prices may not be accurate and may differ from the actual market price, which means that prices are indicative and not suitable for trading purposes. Therefore, Fusion Media is not responsible for any trading losses you may incur as a result of using this data.
Fusion Media or anyone associated with Fusion Media shall not be liable for any loss or damage arising out of reliance on any information, including data, quotes, charts and buy/sell signals, contained on this website. Please inform yourself comprehensively about the risks and costs associated with trading in the financial markets, as it is one of the riskiest forms of investment.