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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April 15, 2024

Markets shrug off Iranian attack

Macro

In the weekend press, fears that Iran’s well-flagged attack on Israel might escalate into a broader regional or global conflict proved overstated. Financial markets have taken the news in their stride, with oil prices opening lower and the dollar index, the DXY, only marginally stronger. Iran has stated that it regards the matter as concluded, while Biden has urged Netanyahu to take the win. Both sides have left the party with a balloon.

Tomorrow, we will get Chinese GDP data and the UK unemployment rate. Wednesday will see the most significant data release, UK inflation, with expectations for a substantial fall towards the 3% annual rate.

UK Companies

Kainos, the IT services provider, updated that revenues are slightly below and adjusted PBT in line with consensus forecasts. Its markets have proven resilient and offer substantial further growth opportunities. Its long-term customer relationships and the calibre of its people remain critical. Its increased backlog, robust pipeline, and strong balance sheet continue to provide excellent visibility. 

Recruiter PageGroup said its gross profit of £219.7m was 12.8% lower. The UK contribution was 19.2% lower. It has reduced the number of fee earners and maintained fee earner efficiency. It has net cash of c. £67m (Q4 2023: c. £90m, Q1 2023: c. £105m). 

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