The FTSE 100 surrendered earlier gains to trade broadly flat on Thursday (13 June) at 7,367.16 as a June rally in the index began to run out of steam.
Next Monday (17 June) Bank of England (BoE) Governor Mark Carney and his colleagues are set to appear before MPs to discuss the outlook for UK inflation and economic growth. Tuesday (18 June) sees the release of the latest German ZEW economic sentiment survey – revealing how investors and analysts are feeling about the state of Europe’s largest economy. The big event of the week comes on Wednesday (19 June) with the latest decision from the US Federal Reserve on interest rates. Next Thursday (20 June) UK rates are in focus as the BoE meets. On Friday (21 June) there is purchasing managers’ index data out on the Eurozone services and manufacturing sectors.
A first quarter trading update from Tesco (TSCO) and news of an expanded joint venture between Morrisons (MRW) and Amazon put supermarkets in the spotlight this week. On Thursday (13 June) Tesco reported group sales for the 13 weeks to 25 May up 1.3%. Like-for-like sales for the core UK business were up 0.4%. The company may reveal more about its strategic plans at an investor day next Tuesday (18 June). The same day Morrisons and US online giant Amazon announced they are expanding the 'Morrisons at Amazon' store on Prime Now to more cities across the UK. 'Morrisons at Amazon' is an ultra-fast same day, online grocery home delivery service, currently available to Amazon Prime Now customers in four cities: Leeds, Manchester, Birmingham, and parts of London and the home counties. Customers can order a full Morrisons shop online, which is then picked at a local Morrisons store, and delivered by Amazon. During 2019, this same day service will begin to be rolled out to other cities, including Glasgow, Newcastle, Liverpool, Sheffield and Portsmouth. In future years, 'Morrisons at Amazon' will be expanded to further cities across the UK.
A meeting of the US Federal Reserve (Fed) next Wednesday (19 June) is likely to be closely scrutinised with some observers expecting a rate cut to shore up the economy. A recent softer-than-expected inflation number was seen as opening the door for the Fed to act.
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Investors looking for exposure to the global corporate bond market could consider exchange-traded fund BMO Barclays 1-3 Year Global Corporate Bond (ZC1G) which has an ongoing charge of 0.17%.
18 June – Investors will be watching full year results from equipment hire business Ashtead (AHT) to see if the company can maintain its impressive track record of consistently raising its dividend. In March the company reported strong third quarter results driven by its US division. Group rental revenues were up 19% over nine months, consistent with the first half, while signs of growth in the UK A-Plant business were encouraging.
18 June – Independent utility provider Telecom Plus (TEP) reported positive news on growth in customer and service numbers in an April trading update but this was offset to a degree by circa £56 million pre-tax profit being at the lower end of previous guidance. The market will be looking for detail on the outlook for the current financial year alongside these full year results.
Narendra Modi and the BJP look set for victory in what has been a gargantuan undertaking for India and stock markets have surged to record highs on early results.
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