Market Prognosis

A concise summary of the major macro events of the past 24 hours, and selected UK company-specific news.

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May 1, 2024

Dominos Pizza puts international expansion back on the menu

Macro

The dollar index, DXY, is moving higher, which ordinarily indicates tightening financial conditions and lower liquidity for financial assets. Recent rallies in energy, commodities, and precious metals have tapered out. 

Against this trend, the price of uranium has started to move higher. It is back above $90, helped by further comments about Kazak supply constraints and the Biden Administration’s plans to ban Russian enriched supply. 

Meanwhile, the Yen is weakening again, and bond yields are rising after what seemed like a coordinated attempt to support JPY on Monday. 

Although the Fed is domestically focused, the US government does not want a full-blown Yen currency crisis on its hands. However, uncertainty keeps pressure on China, so it is perhaps not unhelpful while contained. The question of Japan remains a significant ongoing risk for market stability.   

UK Companies

Concurrent Technologies FY revenue was +73%, and the cash balance was £11m versus £4.5m. It has returned to paying a dividend. Trading in the first four months of the year aligned with market expectations, providing confidence in delivering another year of profitable growth.

Domino Pizza’s Q1 update included a comment about renewed interest in overseas markets. Having recently acquired its Irish franchise owner, DPG also noted that it owns approximately 12.1% of DP Poland‘s issued share capital, representing, it said, a unique opportunity to re-enter international markets in a disciplined, capital-light manner in partnership with a high-performing business operated by an experienced management team.

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Any prices quoted in our research are as at the previous day’s close.