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 3, 2024

Risk-on start to the week

Macro

Commodity and energy prices, the DXY, and bond yields have all weakened. The start of the week has a “risk-on” mood.

This week’s dominant macro news will likely be US employment data, JOLTS and payrolls, and the expected ECB rate cut decision on Thursday.

Politics will continue to feature. India’s market has moved to an all-time high on news of a Modi landslide. We also get election news in South Africa and Mexico.

UK Companies

Franchise Brands expects to report adjusted EBITDA for FY23 at the top end of the range of current market expectations of £29.3m to £30.1m. It also said there is a significant delay in publishing this year’s results due to its increase in size and scope.

Hunting, the oilfield services supplier, has secured a second OCTG order with Kuwait Oil. The order book has increased to c.$751 million, extending Hunting’s revenue visibility into 2025 and 2026.

Springfield, the Scottish housebuilder, has announced a strategic collaboration agreement with Barratts that funds the infrastructure development for a significant site over the next five years. Barratt has made a cash payment of £10m to Springfield. This deal will enhance Springfield’s growth prospects in the medium term, minimise risks, and optimise our return on capital.

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