Spreadex Market Update
Gloomy oil outlook weights on FTSE, whilst Ocado and Sainsbury’s update on UK supermarket battle
With Brent Crude sporadically dipping its greasy toes below $38.50 per barrel there was little chance of growth from the FTSE, which maintained a 0.5% as it sank under the weight of its oil and mining stocks. Leading the commodity-collapse was Antofagasta, the miner revealing a wince-worthy 83% plunge in full year profits, leading it cancel its final dividend. Understandably this didn’t go down well with investors, Antofagasta lopping nearly 10% off its value as the morning continued, the likes of Anglo American and Vedanta Resources following their sector peer’s lead with their own 7 % and 6% falls respectively.
Looking beyond the commodity woes there was plenty of action in the UK supermarket sector this Tuesday; after a terrible, Amazon-plagued start to 2016 things picked up for Ocado this morning, the online grocer rising over 3% as it posted a better than expected 15.3% rise in first quarter sales. Whilst the pair-up between Amazon and Morrisons doesn’t bode well for Ocado going forwards, for now it continues to carve out a successful little niche in the supermarket battleground. Talking of the ongoing supermarket war, there was good news for one of the Big Four this Tuesday, Sainsbury’s revealing its first quarterly like-for-like sales increase (granted, a mere 0.1%) since 2013. Yet a lack of Argos-bid update seemed to temper investors’ excitement over the sales rise, leaving Sainsbury’s with a 0.2% fall as the day continued.
Whilst the morning has been fairly sparse in regards to economic data, things pick up this afternoon as the US produces its latest retail sales (expected to drop to -0.1% from 0.2% last month) and Empire State manufacturing index (forecast at an improved -10.3) figures ahead of tomorrow’s Fed statement. It will take some impressive numbers, however, to shift sentiment this Tuesday, the Dow Jones promising a 70 point drop at the open.
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