Spreadex Market Update
Markets limp as M&S and Thomas Cook see mixed results
And despite continued declines in the euro-dollar, the Eurozone couldn’t match yesterday’s ECB QE-inspired gains, opening with only mild growth as the latest set of worries surrounding Greece and its IMF payment on June 5th make their presence felt.
Marks & Spencer released its full year results for 2014/15, managing an underlying profit before tax increase of 6.1% to £661.2 million, its first rise in profits for 4 years, whilst raising its dividend to £0.18 with plans for a £150 million share buyback in the pipeline. However, whilst its food division was as robust as ever, seeing a 0.6% year-on-year rise to 3.4% growth, its clothing sector failed to match the already low expectations floated in the last week, falling by 3.1% on a like-for-like basis with that fourth quarter return to profits proving to be too little, too late. After reaching a 7 year high in the week preceding its earnings release, M&S slipped by around a percent after the bell with investors disappointed by the lack of real progress in its clothing division.
Considering the well-deserved negative press surrounding Thomas Cook at the moment, it was going to take an especially strong half year release to see a substantial turnaround in the travel company’s fortunes this week. And in some ways, this is what investors got as Thomas Cook trimmed its underlying loss to £173 million, better than the £180 million forecast, with a 22% reduction in its operating losses, with the chance of a dividend pay-out in 2016. However, as year on year revenue fell from £3 billion to £2.7 billion there is still a long way to go before all is rosy with Thomas Cook, and investors appeared keen to distance themselves from the company as it fell by around 2% as the day went on.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
