Market Prognosis

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

<< Back to Market PROGnosis archive

November 2, 2023

Risk on!

Macro & Overnight

Markets moved to risk-on mode as the Fed paused rates for a second month despite the jobs data showing more openings than expected.

Bank of England will follow suit today and keep its policy rate on hold.

UK Company News

BT has signalled an outlook at the top of current guidance, while Shell has announced an increased share buyback programme. 

Howden Joinery, the UK’s largest kitchen supplier, reported sales were 2.0% lower than last year and has continued to trade well since the half year, gaining market share. It has moved its FY guidance to the lower end of the range of analysts’ consensus. 

Morgan Sindall, the UK’s most successful building contractor over the last decade, said that conditions have remained challenging yet manageable. It is on track to deliver FY performance in line with expectations, with strength in Fit Out, Construction and Infrastructure offsetting a weaker performance in Property Services. Procurement and planning processes are increasingly protracted in its Urban Regeneration division. The average daily net cash for the FY will be around £270m, slightly higher than the previous guidance.

Trainline, the online train ticket app, reported solid H1 results and raised its guidance for the FY performance to the upper end of the range of forecasts.

Trainline is a killer app in its area of expertise and is a beneficiary of the digitisation of tickets and the overwhelming complexity of train fares and timetabling. Today’s news is further evidence of the company’s enduring resilience in the face of huge changes to the rail industry and our travel patterns.   

Prognosticator 

This communication is provided for information purposes only, and is not a solicitation or inducement to buy, sell, subscribe, or underwrite securities or units. Investors should seek advice from an Independent Financial Adviser or regulated stockbroker before making any investment decisions. Progressive Equity Research Ltd (“PERL”) does not make investment recommendations.

Opinions contained in this communication represent those of PERL and/or our affiliates at the time of publication and PERL does not undertake to provide updates to any opinions or views expressed. PERL does not hold any positions in the securities mentioned in this communication, however, PERL’s directors, officers, employees, contractors and affiliates may hold a position,  and/or may perform services or solicit business from, any of the companies or related securities mentioned.

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