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U.K. stocks edged slightly higher on Tuesday, extending recent gains as investors assessed the potential policies of Donald Trump, who was sworn in as U.S. president on Monday. The cautious market sentiment was also influenced by the release of U.K. unemployment data, which showed wage growth accelerating despite signs of slowing activity. S&P’s Report on Jobs and the employment components of the U.K. PMIs, point to a significant moderation in labour market activity toward the end of 2024. However, the rise in wage growth offered a more nuanced outlook, suggesting that while activity may have eased, the labour market remains resilient. These mixed signals are unlikely to shift the Bank of England’s gradual approach to lowering the Bank Rate. Investors are also weighing the potential influence of Trump’s policies on global trade, including possible tariffs and his stance on geopolitical issues. Additionally, developments at the ongoing World Economic Forum in Davos remain under close scrutiny. By late Tuesday, the benchmark FTSE 100 had risen 0.1%, continuing its upward trajectory.Single Stock Stories:
Shares of Close Brothers Group jumped nearly 22% to 298p, while Lloyds Banking Group increased by 4%. Secure Trust Bank experienced an impressive 32% rise to 458p, marking its best single-day performance to date. This surge came after British finance minister Rachel Reeves announced her plan to intervene in a significant car loan mis-selling case to safeguard the motor finance sector, which is at risk of incurring multi-billion pound payouts to consumers. Lloyds Banking revealed that it has allocated £450 million ($551.5 million) to cover potential expenses related to the regulatory review. By 11:00 GMT, Lloyds was the leading percentage gainer on the almost unchanged FTSE 100 index. Despite today’s increases, Close Brothers and Secure Trust Bank have seen declines of about 70% and 47%, respectively, in 2024, while Lloyds has gained 14%.
Shares of Premier Foods, known for Mr Kipling, increased by 5% after the company projected annual profits at the higher end of analysts’ forecasts, fuelled by robust sales of branded products during the crucial holiday season. Analysts estimated a trading profit between £180.1 million and £186.4 million ($221 million to $228.7 million) for the 2024-25 financial year, based on company-compiled consensus. Premier Foods reported total sales of £360.1 million for Q3, marking a 3.1% year-over-year rise. Analysts from Jefferies pointed out two significant trends: the strong outperformance of branded sales and volume growth surpassing revenue growth. They credited the results to effective investments in promotional pricing since the latter half of 2024, consistent execution of the company’s strategic plan, and strong performance during the Christmas season. The stock has risen by about 39% in 2024.
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Shares of abrdn climbed as much as 9% to 154.4p, reaching their highest point since October 24, and were the leading percentage gainer on the FTSE 250 index, which rose by 0.2%. This increase followed the British asset manager’s report of £1.2 billion ($1.5 billion) in net client cash inflows for Q4 2024, even though the company experienced overall outflows for the year. Analysts from JPMorgan pointed out that the Q4 inflows surpassed expectations, fuelled by strong performances in cash funds and the firm’s retail platform, Interactive Investor. CEO Jason Windsor emphasised that the company met its goal of reducing costs by over £100 million and is on track to exceed £150 million in cost savings by the end of 2025. Despite the gains today, abrdn shares have declined by 21% overall in 2024.
Technical & Trade ViewFTSE Bias: Bullish Above Bearish below 8400
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