London (Parliament Politic Magazine) – UK retail companies received a delightful surprise this morning, as the Office for National Statistics revealed data indicating a greater-than-anticipated increase in the volume of goods sold last month. However, this boost may be short-lived, as consumer confidence figures suggest a potential weakening of the economy. The FTSE 100 has risen by 0.1% this morning, reaching its highest level in almost two months.
Today’s economic calendar is relatively light, with early data from the UK revealing that retail sales in June exceeded expectations. Although they remained lower compared to the previous year. Additionally, consumer confidence has declined for the first time in six months, dropping to -30 in July from -24 in June, as reported by GfK.
FTSE 100 analysis: Where next for the UK 100?
Today’s afternoon, all eyes are on Canada as we await the release of retail sales data and the new housing price index. The UK 100, which tracks the FTSE 100, has reached its highest level in nearly two months after breaking above the falling trend line this week. Currently, the index is once again testing the 7,650 ceiling that was significant in late May and early June. This morning, similar to yesterday, the index is aligned with the 100-day moving average.
A close above this level could instill confidence that it has the potential to climb toward the next resistance level at 7,780. The Relative Strength Index (RSI) remains in bullish territory, indicating that the rally may have further room to grow. Additionally, the candles observed over the past three sessions have also been bullish, further supporting this upward trend. However, if the index faces renewed pressure, it is likely to slip back towards 7,550. If it falls below this level, we could potentially see it drop further to 7,450.
It is worth knowing that the business will continue to be a customer of THG’s Ingenuity platform. Additionally, THG has sold ProBikeKit to Frasers Group, a London-listed company, for £4 million. As a result, Frasers Group has seen a 0.2% increase in early trade.
Top UK Stock News
Pay attention to retailers such as Next, JD Sports, Frasers Group, Dunelm, and Currys today as we have discovered that UK retail sales increased by 0.7% month-on-month in June. This growth is an improvement from the 0.3% increase observed in May and exceeded the predicted 0.2% growth. Although retail sales were still down 1% compared to the previous year, this decline has eased from the 2.1% drop in the previous month and is better than the economists’ forecast of a 1.5% decrease.
This morning, THG experienced a 0.1% decrease in its stock value after announcing its plans to streamline its business by selling its OnDemand division. The trade and assets of this unit have been sold to its existing management, with financial assistance from advisory and investment firm Gordon Brothers.
Glencore’s stock has declined by 0.3% following the announcement that its expansive Marketing division, responsible for trading commodities worldwide, has returned to normal operations after the favorable volatility experienced in 2022. Glencore has projected that its annual adjusted Marketing Ebit for this year will range between $3.5 billion and $4.0 billion, significantly surpassing its long-term target range of $2.3 billion to $3.2 billion.
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The news coincided with the revelation that the production of most commodities was lower during the first half of 2023. Notably, copper production decreased by 4%, coal output by 2%, and zinc experienced a significant drop of 10%. Despite these challenges, Glencore has reaffirmed its full-year guidance and anticipates that the volumes of its three primary metals will be concentrated in the second half of the year.
FirstGroup’s stock has risen by 0.4% following its announcement that it has performed in line with expectations since the beginning of the new financial year. This positive news comes just ahead of the company’s annual general meeting scheduled for later today.
Additionally, FirstGroup has successfully returned £70.9 million of the £75 million share buyback program initiated in December. Once this program is fully completed, the company plans to launch a new buyback program worth £115 million, contingent upon securing shareholder support today. FirstGroup intends to release its interim results on November 23, providing further insight into its financial performance. On the other hand, Polymetal has experienced a decline of 4.4% in its stock value today.