Market Outlook

Morning Market Update

Headlines

UK pubs to close from 10pm on Thursday and people encouraged to work from home

Trump says he will not approve TikTok-Oracle deal if ByteDance maintains control

Premier Inn owner Whitbread set to axe 6,000 jobs amid pandemic

Kingfisher beats profit expectations as people spent more on homes and gardens

Tom Bonney
Posted Tue 22 September 2020
by Tom Bonney

Markets

FTSE recovers from yesterday’s sell-off as UK imposes tougher restrictions:

  • Asian indices were down, Shanghai’s CSI 300 fell 1.19% to 4,636 pts, S&P/ASX200 shed 0.66% to 5,784 pts, and KOSPI was down 2.38% to 2,332 pts
  • FTSE recovers from sell-off, FTSE100 is up 0.45% to 5,824 pts, Nasdaq futures are down 0.4% to 10,936 pts, and S&P500 futures are down 0.3% to 3,271 pts

Whitbread to axe 6,000 jobs and Kingfisher beats profit expectations:

  • Premier Inn owner Whitbread set to axe 6,000 jobs with sales of food and hotel rooms down almost 40% from 2019. Whitbread is down 2.8% to 2,050 pts
  • DIY group Kingfisher saw half-year profits rise 23% to £415m as people spent more on homes and gardens. Kingfisher is up 6% to 280.4 pts

Pound falls further amid concerns of a second lockdown:

  • GBP/USD is down 0.6% to $1.274 as Boris considers a second lockdown
  • EUR/USD is down 0.4% to $1.1724 with the US Dollar Basket up 0.32%
  • USD/JPY is unchanged at ¥104.65

Gold and Silver tumble as US Dollar gains, Oil holds:

  • Gold is down 0.7% to $1899 per ounce and Silver is down 3.1% to $23.97 per ounce
  • WTI is unchanged at $39.56 a barrel and Brent Crude is up 0.1% to $41.89 a barrel

Bond yields are mixed awaiting further market developments:

  • UK 2-Yr is -0.002 to -0.116% and 10-Yr is unchanged at 0.158%
  • US 2-Yr is +0.002 to 0.139% and 10-Yr is -0.01 to 0.661%
  • German 2-Yr is unchanged at -0.72% and 10-Yr is -0.002 to -0.53%

To come:

We have UK Industrial Trends Survey Orders for September at 11:00GMT, followed by weekly US Redbook Index at 13:55GMT. Then at 15:00GMT we have US Existing Homes Sales Change for August, the Richmond Fed Manufacturing Index for September, and Eurozone Consumer Confidence for September. At 15:30GMT, Fed’s Chair Powell testifies. API weekly Crude Oil Stock is released at 21:30GMT.

 

Sources: Reuters, Financial Times, Wall Street Journal, CNBC and Bloomberg

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