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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June 6, 2024

ECB to add momentum to rate cutting cycle

Macro

The ECB will follow Canada, Sweden, and Switzerland in policy rate reductions, adding significant momentum to a downward shift in the global rate cycle.

Employment data due tomorrow in the US should help point to the likely timing of any Fed rate decision.

UK Companies

Concurrent Technologies has announced two defence systems contract wins, vindicating last year’s US acquisition.   

Fevertree updated with unchanged guidance despite the poor UK summer weather.

S&U provided an update of its twin businesses in motor and property finance. For Advantage Finance, the motor business, 2024 will be a year of consolidation. By contrast, the property business benefits from an improving residential market. The UK residential market has seen increased sales instructions and prices with an improving economic outlook for consumers and businesses. It added that a strong labour market and greater political stability will all benefit S&U over the coming year. It said it wrestles on with confidence.

Seraphim Space has updated with a slight increase in appraised NAV to 95.37p per share. The discount has narrowed from 64% to 48%, reflecting much-improved investor interest in the space sector.  

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