The FTSE is in a wait-and-see loop this morning with some gloom coming from Asia where markets stalled because of a lack of visible progress in the Sino-US trade relations. Imperial Brands (LON:IMB) has recovered from yesterday’s post-results decline as the dip made the stock prices appealing to investors. BAE Systems (LON:BAES) is also on the rise, trading up 1.85%.
M&S - mysterious adjustment
M&S shares are trading 5.4% higher after the company released its half year results. Looking at the M&S balance sheet more closely it is actually impossible to say if the company made a profit during that period or not as it has added a mysterious adjusting item that has not been explained yet. What is certain though is that the company is still struggling with lower clothing and home sales while food sales remained nearly flat and that it is planning further store closures and cost cutting to counteract the in-store sales decline.
Euro bounces on German factory orders
The euro has strengthened against the dollar and the pound after the German economy saw a glimmer of hope in the shape of rising factory orders. After several months of declines orders, from outside of Europe have risen, giving German manufacturing a much needed fillip. All the recent manufacturing PMI numbers have shown that the sector has been contracting. This morning the euro is trading up 0.14% against the dollar and 0.15% against the pound.
The pound has stabilised against the dollar after a fall late yesterday and is trading at $1.2887. The $1.30 level remains difficult to breach – barring any fresh political news – and for the time being sterling looks set to trade just below that level.